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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C.&nbsp;&nbsp;20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">FORM S-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">REGISTRATION STATEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">UNDER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">THE SECURITIES ACT OF 1933</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact name of registrant as specified
in its charter)</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 31%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 31%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">2834</TD>
    <TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 36%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">98-0178683</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(State or other jurisdiction of</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">incorporation or</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">organization)</P></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Primary Standard Industrial</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Classification Code Number)</P></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(I.R.S. Employer Identification Number)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>555 Richmond Street West, Suite 604</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Toronto, Ontario</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Canada M5V 3B1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(416) 364-2551</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address, including zip code, and telephone
number, including</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">area code, of registrant&rsquo;s principal
executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Mark Fletcher, Esquire</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chief Executive Officer &amp; President</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>555 Richmond Street West, Suite 604</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Toronto, Ontario</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Canada M5V 3B1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(416) 364-2551</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name, address, including zip code, and
telephone number,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">including area code, of agent for service)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Copies to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Gary A. Miller</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Eckert Seamans Cherin &amp; Mellott,
LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Two Liberty Place</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>50 South 16th Street, 22nd Floor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Philadelphia, Pennsylvania 19102</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(215) 851-8400</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE
PUBLIC</B>: From time to time after the effective date of this registration statement, as determined by the Selling Stockholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If any of the securities being registered on this Form are to
be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box.&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is filed to register additional securities for
an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.&nbsp;&nbsp;See the definitions of &ldquo;large
accelerated filer&rdquo;, &ldquo;accelerated filer&rdquo;, and &ldquo;smaller reporting company&rdquo; in Rule 12b-2 of the Exchange
Act (Check one):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%">Large accelerated filer</TD>
    <TD STYLE="width: 20%; font-family: Wingdings">&uml;</TD>
    <TD STYLE="width: 25%">Accelerated filer</TD>
    <TD STYLE="width: 25%; font-family: Wingdings">x</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Non-accelerated filer</TD>
    <TD STYLE="font-family: Wingdings">&uml;</TD>
    <TD>Smaller reporting company</TD>
    <TD STYLE="font-family: Wingdings">&uml;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Calculation of Registration Fee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">Title&nbsp;of&nbsp;each&nbsp;Class&nbsp;of&nbsp;Security&nbsp;Being <BR>Registered</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Amount <BR>Being <BR>Registered&nbsp;(1) (2)(3)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Proposed <BR>Maximum <BR>Offering <BR>Price&nbsp;Per <BR>Security&nbsp;(4)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Proposed <BR>Maximum <BR>Aggregate <BR>Offering <BR>Price(4)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Amount&nbsp;of <BR>Registration <BR>Fee</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 48%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Common Stock, $0.001 par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">88,121,621</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">.0705</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,212,754</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">712</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the shares of common stock registered hereunder are held by, or issuable upon conversion or exercise of securities held by,
the Selling Stockholders. Accordingly, this registration statement includes an indeterminate number of additional shares of common
stock issuable for no additional consideration pursuant to any stock dividend, stock split, recapitalization, or other similar
transaction effected without the receipt of consideration, which results in an increase in the number of outstanding shares of
our common stock. In the event of a stock split, stock dividend or similar transaction involving our common stock, in order to
prevent dilution, the number of shares registered shall be automatically increased to cover the additional shares in accordance
with Rule 416(a) under the Securities Act of 1933.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">(2) Includes 1.20 times the number of shares
issuable upon exercise of certain warrants issued by the August 10, 2012 and preferred stock issued by the registrant on August
10, 2012, which include a price protection feature. The registrant is registering an additional 3,750,000 shares of common stock,
which is a good faith estimate of the maximum number of shares of common stock issuable upon exercise or conversion of such warrants
and preferred stock if the price protection feature is triggered. The price protection feature provides for a reduction in the
exercise price and an increase in the number of shares of common stock issuable under the existing warrants upon the occurrence
of certain events, including the Company&rsquo;s issuance of common stock or securities convertible into or exercisable for common
stock, such as options and warrants, at a price per share less than the exercise price then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Includes an estimated 4,050,000 shares
of common stock which may be issued as payment for dividends payable on the Series C 9% Convertible Preferred Stock through August
10, 2015 and &ldquo;make-whole payments&rdquo; upon conversion of the Series C 9% Convertible Preferred Stock prior to August 10,
2015 in an amount equal to $270 per $1,000 of stated value of the Series C 9% Convertible Preferred Stock, less the amount of all
prior quarterly dividends paid thereon before the relevant conversion date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated
solely for purposes of determining the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, using the average
of the bid and asked prices for our common stock as reported on the OTC Bulletin Board on September 6, 2012, which was $0.0705
per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>THE REGISTRANT HEREBY AMENDS THIS REGISTRATION
STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT
WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT
TO SAID SECTION 8(a), MAY DETERMINE.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Resale of&nbsp;88,121,621 Shares of Common
Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus relates to the resale of
our common stock by certain of our stockholders, or Selling Security Holders.&nbsp; The shares offered for resale by this prospectus
include the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,800,000
shares of common stock issuable (i) upon conversion of the Series C 9% Convertible Preferred Stock sold in our August 10, 2012
offering, (ii) upon exercise of the warrants sold in our August 10, 2012 offering which may be exercised at a price of $0.08 per
share, and (iii) in lieu of the cash payment of dividends on the preferred stock sold in our August 10, 2012 offering payable through
August 10, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,750,000
shares of common stock pertaining to (i) additional shares of common stock that may be issuable upon the triggering of ratchet
provisions of 9,375,000 warrants that were issued in our August 10, 2012 offerings and (ii) additional shares of common stock that
may be issuable upon the triggering of ratchet provisions of the Series C 9% Convertible Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">And shares of additional common stock issuable
upon exercise of certain previously issued warrants due to the triggering of ratchet provisions in connection with our August 10,
2012 offering of Series C 9% Convertible Preferred Stock including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,171,626
shares of common stock issuable upon exercise of certain warrants sold&nbsp;in&nbsp;our March 31, 2008 offering which may be exercised
at a price of $0.08 per share due to the triggering of ratchet provisions;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,499,999
shares of common stock issuable upon exercise of the warrants sold in our January 25, 2011 offering which may be exercised at a
price of $0.08 per share due to the triggering of ratchet provisions;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,916,644
shares of common stock issuable upon exercise of the warrants sold in our July 7, 2011 offering which may be exercised at a price
of $0.08 per share due to the triggering of ratchet provisions;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,333,332
shares of common stock issuable (i) upon conversion of the Series B 9% Convertible Preferred Stock sold in our February 1, 2012
offering, and (ii) upon exercise of the warrants sold in our February 1, 2012 offering which may be exercised at a price of $0.08
per share due to the triggering of ratchet provisions;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This Prospectus also relates to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
aggregate of 1,650,000 shares of common stock issued to placement agents and consultants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus may only be used where it
is legal to offer and sell the shares covered by this prospectus. We have not taken any action to register or obtain permission
for this offering or the distribution of this prospectus in any country other than the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although we will pay substantially all the
expenses incident to the registration of the shares, we will not receive any proceeds from the sales by the Selling Security Holders.
We will, however, to the extent the warrants are exercised for cash, receive proceeds from such exercises; to the extent we receive
such proceeds, they will be used for general corporate and working capital purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Selling Security Holders may sell these
securities from time to time at the prevailing market price or in negotiated transactions or in any other manner specified under
&ldquo;Plan of Distribution&rdquo; in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our common stock is presently quoted for
trading on the OTC Bulletin Board under the symbol &ldquo;GNBT.OB&rdquo;. On September 6, 2012, the last sales price of the common
stock was $0.0705 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Investing in our common stock is highly
speculative and involves a high degree of risk. You should purchase these securities only if you can afford a complete loss of
your investment.&nbsp;&nbsp;You should carefully consider the risks and uncertainties described under the heading &ldquo;Risk Factors&rdquo;
beginning on page&nbsp;5 of this prospectus before making a decision to purchase our common stock.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-transform: uppercase"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed
upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="width: 90%; padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">PROSPECTUS SUMMARY</TD>
    <TD STYLE="width: 10%; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">THE OFFERING</TD>
    <TD STYLE="text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">RISK FACTORS</TD>
    <TD STYLE="text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">FORWARD-LOOKING STATEMENTS</TD>
    <TD STYLE="text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">USE OF PROCEEDS</TD>
    <TD STYLE="text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">SELLING SECURITY HOLDERS</TD>
    <TD STYLE="text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">MARKET PRICE OF OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS</TD>
    <TD STYLE="text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">BUSINESS AND PROPERTY</TD>
    <TD STYLE="text-align: right">23</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">SELECTED FINANCIAL DATA</TD>
    <TD STYLE="text-align: right">43</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS</TD>
    <TD STYLE="text-align: right">43</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">MANAGEMENT</TD>
    <TD STYLE="text-align: right">64</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">EXECUTIVE COMPENSATION</TD>
    <TD STYLE="text-align: right">69</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">CERTAIN TRANSACTIONS</TD>
    <TD STYLE="text-align: right">82</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in"><FONT STYLE="text-transform: uppercase">Security Ownership
    of Certain Beneficial Owners and Management</FONT></TD>
    <TD STYLE="text-align: right">83</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">DESCRIPTION OF SECURITIES TO BE REGISTERED</TD>
    <TD STYLE="text-align: right">85</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">PLAN OF DISTRIBUTION</TD>
    <TD STYLE="text-align: right">91</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">LEGAL MATTERS</TD>
    <TD STYLE="text-align: right">93</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">EXPERTS</TD>
    <TD STYLE="text-align: right">93</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">WHERE YOU CAN FIND&nbsp;MORE INFORMATION</TD>
    <TD STYLE="text-align: right">93</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
    <TD STYLE="text-align: right">F-1</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in; font-weight: bold; text-indent: -0.1in">PART II</TD>
    <TD STYLE="text-align: right">II-1</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>This summary highlights information set forth in greater
detail elsewhere in this prospectus. It may not contain all the information that may be important to you. You should read this
entire prospectus carefully, including the sections entitled &ldquo;Risk Factors&rdquo; beginning on page 8, the financial statements
and the notes to the financial statements. Unless the context requires otherwise, references to the &ldquo;Company,&rdquo; &ldquo;Generex,&rdquo;
&ldquo;we,&rdquo; &ldquo;our,&rdquo; and &ldquo;us,&rdquo; refer to Generex Biotechnology Corporation and its subsidiaries</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are engaged primarily in the research and development of
drug delivery systems and technologies. Our primary focus at the present time is our proprietary technology for the administration
of formulations of large molecule drugs to the oral (buccal) cavity using a hand-held aerosol applicator. Through our wholly-owned
subsidiary, Antigen Express, Inc. (&ldquo;Antigen&rdquo;), we have expanded our focus to include immunomedicines incorporating
proprietary vaccine formulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that our buccal delivery technology is a platform
technology that has application to many large molecule drugs and provides a convenient, non-invasive, accurate and cost-effective
way to administer such drugs. We have identified several large molecule drugs as possible candidates for development, including
estrogen, heparin, monoclonal antibodies, human growth hormone and fertility hormones, but to date have focused our development
efforts primarily on one pharmaceutical product, Generex Oral-lyn&trade;, an insulin formulation administered as a fine spray into
the oral cavity using our proprietary hand-held aerosol spray applicator known as RapidMist&trade;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our wholly-owned subsidiary, Antigen, concentrates on developing
proprietary vaccine formulations that work by stimulating the immune system to either attack offending agents (i.e., cancer cells,
bacteria, and viruses) or to stop attacking benign elements (i.e., self proteins and allergens). Our immunomedicine products are
based on two platform technologies and are in the early stages of development. We continue clinical development of Antigen&rsquo;s
synthetic peptide vaccines designed to stimulate a potent and specific immune response against tumors expressing the HER-2/neu
oncogene for patients with HER-2/neu positive breast cancer in a Phase II clinical trial and patients with prostate cancer and
against avian influenza in two Phase I clinical trials. We recently initiated an additional Phase I clinical trial in patients
with either breast or ovarian cancer. The synthetic vaccine technology has certain advantages for pandemic or potentially pandemic
viruses, such as the H5N1 avian and H1N1 swine flu. In addition to developing vaccines for pandemic influenza viruses, we have
vaccine development efforts underway for seasonal influenza virus, HIV, HPV, melanoma, ovarian cancer, allergy and Type I diabetes
mellitus. We have established collaborations with clinical investigators at academic centers to advance these technologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black">To date, we have received regulatory
approval in Ecuador, India (subject to further study), Lebanon and Algeria for the commercial marketing and sale of Generex Oral-lyn&trade;.
</FONT>We have previously submitted regulatory dossiers for Generex Oral-lyn&trade; in a number of other countries, including Bangladesh,
Kenya, Jordan and Armenia. While we believe these countries will ultimately approve our product for commercial sale, we do not
anticipate recognizing revenues in any of these jurisdictions in the next twelve months. No dossier related activities or product
shipments have taken place to these countries during 2011, nor are any expected during the remainder of 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black">In March 2008, we initiated Phase
III clinical trials for this product in the U.S. with the first patient screening for such trials at a clinical study site in Texas
in April 2008. Approximately 450 patients have been enrolled to date at approximately 70 clinical sites around the world, including
sites in the United States, Canada, Bulgaria, Poland, Romania, Russia, Ukraine and Ecuador. </FONT>The first Oral-lyn global Phase
III trial initiated in April 2008 had a final patient visit date in August 2011. After appropriate validation, the data from approximately
450 patients was tabulated, reviewed and analyzed. Those results from the Phase III trial along with a comprehensive review and
supplemental analyses of approximately 40 prior Oral-lyn clinical studies were compiled and submitted to the FDA in late December
2011 in a comprehensive package including a composite metanalysis of all safety data. Following notification of the completion
of their review, we will schedule a meeting with the FDA to arrive at a consensus for the pathway for regulatory approval, including
any additional clinical or pharmacological studies that might be required to support regulatory approval or enhance marketing success.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Using our buccal delivery technology, we have also launched
a consumer/over-the-counter glucose spray called Glucose RapidSpray&trade;. We do not plan to expend significant resources to market
this product in the future. Revenues will not likely be significant unless we engage a major marketing partner to manufacture,
distribute, market and sell this product. In fiscal 2011 and in the first three quarters of fiscal 2012, we received modest revenues
from sales of our commercially available consumer/over-the-counter products. We are currently seeking a global purchaser or licensee
for the Glucose Rapid Spray Product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We face competition from other providers of alternate forms
of insulin. Some of our most significant competitors, Pfizer, Eli Lilly, and Novo Nordisk, have announced that they will discontinue
development and/or sale of their inhalable forms of insulin. Generex Oral-lyn&trade; is not an inhaled insulin; rather, it is a
buccally absorbed formulation with no residual pulmonary deposition. We believe that our buccal delivery technology offers several
advantages, including the ease of use, portability, avoidance of pulmonary inhalation and safety profile. Furthermore, insulin
administered through the Generex Oral-lyn&trade; RapidMist&trade; technology is absorbed directly into the blood stream and not
only acts rapidly, but returns to baseline quickly, thereby minimizing the chance of developing hypoglycemia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Large pharmaceutical companies, such as Merck &amp; Co., Inc.,
GlaxoSmithKline PLC, Novartis, Inc., MedImmune Inc. (a subsidiary of Astra-Zeneca, Inc.) and others, also compete against us in
the oncology, immunomedicine and vaccine markets. These companies have competing experience and expertise in securing government
contracts and grants to support research and development efforts, conducting testing and clinical trials, obtaining regulatory
approvals to market products, as well as manufacturing and marketing approved products. As such, they are also considered significant
competitors in these fields of pharmaceutical products and therapies. There are also many smaller companies which are pursuing
similar technologies in these fields who are considered to be competitors of Generex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a development stage company with a limited history of
operations, and do not expect sufficient revenues to support our operation in the immediately foreseeable future. To date, we have
not been profitable and our accumulated net loss available to shareholders was $356,035,942 at April 30, 2012. As of April 30,
2012, our current cash position is not sufficient to meet our working capital needs for the next twelve months. To continue operations,
we will require additional funds to support our working capital requirements and any development activities, or will need to suspend
operations. Management is seeking various alternatives to ensure that we can meet some of our operating cash flow requirements
through financing activities, such as private placement of our common stock, preferred stock offerings and offerings of debt and
convertible debt instruments as well as through merger or acquisition opportunities. In addition, management is actively seeking
strategic alternatives, including strategic investments and divestitures. Management has sold, and is also seeking further sales
of, non-essential real estate assets which are classified as Assets Held for Investment to augment its cash position. We cannot
provide any assurance that we will obtain the required funding. Our inability to obtain required funding in the near future or
our inability to obtain funding on favorable terms will have a material adverse effect on our operations and our strategic development
plan for future growth. If we cannot successfully raise additional capital and implement our strategic development plan, our liquidity,
financial condition and business prospects will be materially and adversely affected and we may have to cease operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We operate in only one segment: the research and development
of drug delivery systems and technologies for metabolic and immunological diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We were incorporated in the State of Delaware in 1997.&nbsp;&nbsp;Our
principal offices are located at 555 Richmond Street West, Suite 604, Toronto, Ontario, Canada M5V 3B1. Our telephone number is
(416) 364-2551 and our Internet address is <U>www.generex.com</U>. Information contained in, or accessible through, our website
does not constitute a part of this prospectus.&nbsp;&nbsp;&nbsp;Copies of our current and periodic reports filed with the SEC are
available at the SEC Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549, and online at www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>THE OFFERING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; font-weight: bold">Securities offered</TD>
    <TD STYLE="width: 2%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 60%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are registering up to an aggregate of 88,121,621 shares of
        common stock issued and outstanding, issuable upon conversion or exercise, as applicable, of outstanding preferred stock and warrants,
        and issuable in lieu of cash payments of dividends on such preferred stock.&nbsp;&nbsp;The following shares may be offered, from
        time to time, for resale under this prospectus:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,800,000
        shares of common stock issuable (i) upon conversion of the Series C 9% Convertible Preferred Stock sold in our August 10, 2012
        offering, (ii) upon exercise of the warrants sold in our August 10, 2012 offering which may be exercised at a price of $0.08 per
        share, and (iii) in lieu of the cash payment of dividends on the preferred stock sold in our August 10, 2012 offering payable through
        August 10, 2015.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,750,000
        shares of common stock pertaining to (i) additional shares of common stock that may be issuable upon the triggering of ratchet
        provisions of 9,375,000 warrants that were issued in our August 10, 2012 offerings and (ii) additional shares of common stock that
        may be issuable upon the triggering of ratchet provisions of the Series C 9% Convertible Preferred Stock.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">And the following additional shares of common stock issuable
        upon the exercise of warrants or conversion of preferred stock due to triggering of ratchet provisions in connection with our August
        10, 2012 offering of Series C 9% Convertible Preferred Stock:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,171,626
        shares of common stock issuable upon exercise of certain warrants sold&nbsp;in&nbsp;our March 31, 2008 offering which may be exercised
        at a price of $0.08 per share due to the triggering of ratchet provisions;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,499,999
        shares of common stock issuable upon exercise of the warrants sold in our January 25, 2011 offering which may be exercised at a
        price of $0.08 per share due to the triggering of ratchet provisions;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,916,644
        shares of common stock issuable upon exercise of the warrants sold in our July 7, 2011 offering which may be exercised at a price
        of $0.08 per share due to the triggering of ratchet provisions;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,333,332
        shares of common stock issuable (i) upon conversion of the Series B 9% Convertible Preferred Stock sold in our February 1, 2012
        offering, and (ii) upon exercise of the warrants sold in our February 1, 2012 offering which may be exercised at a price of $0.08
        per share due to the triggering of ratchet provisions;.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This Prospectus also relates to:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
        aggregate of 1,650,000 shares of common stock issued to placement agents and consultants.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; font-weight: bold">Common stock offering by the Company</TD>
    <TD STYLE="width: 2%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 60%">None.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">Common stock to be outstanding after this offering</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>450,921,406 shares</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">Use of proceeds</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>We will not receive any proceeds from the sale of shares in this offering by the Selling Security Holders. However, we will receive proceeds from the exercise of the warrants if the warrants are exercised for cash. See &ldquo;Use of Proceeds&rdquo;.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">Principal market; trading symbol</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>OTC Bulletin Board; &ldquo;GNBT.OB&rdquo;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">Risk factors</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>See &ldquo;Risk Factors&rdquo; beginning on page 8 of this registration statement for a discussion of factors you should carefully consider before deciding to invest in our securities.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Investment in our company involves a high
degree of risk. You should carefully consider the following risks, together with the financial and other information contained
in this prospectus. Each of the risks described in these sections and documents could adversely affect our business, financial
condition, results of operations and prospects, and could result in a complete loss of your investment. This prospectus contains
forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated
in these forward-looking statements as a result of certain factors, including the risks mentioned above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Our business and results of operations are subject to numerous
risks, uncertainties and other factors that you should be aware of, some of which are described below. The risks, uncertainties
and other factors described below are not the only ones facing our company. Additional risks, uncertainties and other factors not
presently known to us or that we currently deem immaterial may also impair our business operations. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Any of the risks, uncertainties and other factors could have
a materially adverse effect on our business, financial condition or results of operations and could cause the trading price of
our common stock to decline substantially. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Risks Related to Our Financial Condition</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We will require additional financing to continue our operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of April 30, 2012, our current cash position is not sufficient
to meet our working capital needs for the next twelve months based on the pace of our planned activities. To continue operations,
we will require additional funds to support our working capital requirements and any expansion or other activities, or will need
to significantly reduce our clinical trials and other planned activities or suspend operations. Management is seeking various alternatives
to ensure that we can meet some of our operating cash flow requirements through financing activities, such as private placement
of our common stock, preferred stock offerings and offerings of debt and convertible debt instruments as well as through merger
or acquisition opportunities. The securities purchase agreement that we entered into on August 8, 2012 with certain investors limits
the financing activities that we may undertake in the near future as it prohibits us from (i) issuing additional equity securities
until 60 days after the effective date of a registration statement covering the resale of the common stock issuable upon exercise
of the warrants and conversion of the preferred stock sold in that transaction and (ii) issuing additional debt or equity securities
with variable a conversion or exercise price until August 10, 2013. In addition, management is actively seeking strategic alternatives,
including strategic investments and divestitures. Management has sold, and is also seeking further sales of, non-essential real
estate assets which are classified as Assets Held for Investment to augment its cash position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We cannot provide any assurance that we will obtain the required
funding. Our inability to obtain required funding in the near future or our inability to obtain funding on favorable terms will
have a material adverse effect on our operations and our strategic development plan for future growth. If we cannot successfully
raise additional capital and implement our strategic development plan, our liquidity, financial condition and business prospects
will be materially and adversely affected and we may have to cease operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have a history of losses and will incur additional
losses.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a development stage company with a limited history of
operations, and do not expect sufficient revenues to support our operation in the immediately foreseeable future. We do not expect
to receive significant revenues in Ecuador, Algeria and Lebanon where we have been approved for commercial sale in the next twelve
months. While we have entered into a licensing and distribution agreement with a leading Indian-based pharmaceutical company and
insulin distributor, we do not anticipate recognizing revenue from sales of Generex Oral-lyn&trade; in India in 2012, as we have
to complete an in-country clinical study before the product can be offered for commercial sale in India.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To date, we have not been profitable and our accumulated net
loss available to shareholders was $356,035,942at April 30, 2012. Our losses have resulted principally from costs incurred in research
and development, including clinical trials, and from general and administrative costs associated with our operations. While we
seek to attain profitability, we cannot be sure that we will ever achieve product and other revenue sufficient for us to attain
this objective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">With the exception of Generex Oral-lyn&trade;, which has received
regulatory approval in Ecuador, India (subject to the completion of an in-country study), Lebanon and Algeria, our product candidates
are in research or early stages of pre-clinical and clinical development. We will need to conduct substantial additional research,
development and clinical trials. We will also need to receive necessary regulatory clearances both in the United States and foreign
countries and obtain meaningful patent protection for and establish freedom to commercialize each of our product candidates. We
must also complete further clinical trials and seek regulatory approvals for Generex Oral-lyn&trade; in countries outside of Ecuador,
India, Lebanon and Algeria. We cannot be sure that we will obtain required regulatory approvals, or successfully research, develop,
commercialize, manufacture and market any other product candidates. We expect that these activities, together with future general
and administrative activities, will result in significant expenses for the foreseeable future.<FONT STYLE="color: black"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our independent auditors have expressed substantial doubt
about our ability to continue as a going concern as of July 31, 2011. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To date, we have not been profitable and our accumulated net
loss available to shareholders was $347,744,756 at July 31, 2011, and our consolidated balance sheet reflected a stockholders&rsquo;
deficiency of $8,442,136 at that date. Our accumulated net loss available to shareholders was $356,035,942 at April 30, 2012. At
April 30, 2012, our consolidated balance sheet reflects a stockholders&rsquo; deficiency of $7,651,468. We received a report from
our independent auditors for the year ended July 31, 2011 that includes an explanatory paragraph describing an uncertainty as to
Generex&rsquo;s ability to continue as a going concern. We must secure financing to continue our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our research and development and commercialization efforts
may depend on entering into agreements with corporate collaborators. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Because we have limited resources, we have sought to enter into
collaboration agreements with other pharmaceutical companies that will assist us in developing, testing, obtaining governmental
approval for and commercializing products using our buccal delivery and immunomedicine technologies. We may be unable to achieve
commercialization of any of our products until we obtain a large pharmaceutical partner to assist us in such commercialization
efforts. To date, we have not entered into any such collaborative arrangements. Any collaborator with whom we may enter into such
collaboration agreements may not support fully our research and commercial interests since our program may compete for time, attention
and resources with such collaborator's internal programs. Therefore, these collaborators may not commit sufficient resources to
our program to move it forward effectively, or that the program will advance as rapidly as it might if we had retained complete
control of all research, development, regulatory and commercialization decisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Risks Related to Our Technologies</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>With the exception of Generex Oral-lyn&trade;, our technologies
and products are at an early stage of development and we cannot expect significant revenues in respect thereof in the foreseeable
future.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have no products approved for commercial sale at the present
time with the exception of Generex Oral-lyn&trade; in Ecuador, Lebanon, Algeria and India (subject to further study). To be profitable,
we must not only successfully research, develop and obtain regulatory approval for our products under development, but also manufacture,
introduce, market and distribute them once development is completed or find a partner that can perform these activities on our
behalf. We have yet to manufacture, market and distribute these products on a large-scale commercial basis, and we expect to receive
only modest revenues, if any, from product sales in fiscal year 2013. We may not be successful in one or more of these stages of
the development or commercialization of our products, and/or any of the products we develop may not be commercially viable. Until
we can establish that they are commercially viable products, we will not receive significant revenues from ongoing operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Until we receive regulatory approval to sell our pharmaceutical
products in additional countries, our ability to generate revenues from operations may be limited and those revenues may be insufficient
to sustain operations. Many factors impact our ability to obtain approvals for commercially viable products.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our only pharmaceutical product that has been approved for commercial
sale by drug regulatory authorities is our oral insulin spray formulation, and that approval was obtained in Ecuador, Lebanon,
Algeria and India (subject to the completion of an in-country study). We have begun the regulatory approval process for our oral
insulin, buccal morphine and fentanyl products in other countries, and we have initiated late stage clinical trials of Generex
Oral-lyn&trade; at clinical trial sites in North America and other countries according to the initial Phase III clinical plan.
The final subjects completed the trial in August 2011. After appropriate validation, the data from approximately 450 patients was
tabulated, reviewed and analyzed. Those results from the Phase III trial along with a comprehensive review and supplemental analyses
of approximately 40 prior Oral-lyn clinical studies were compiled and submitted to the FDA in late December 2011 in a comprehensive
package including a composite metanalysis of all safety data. Following notification of the completion of their review, we will
schedule a meeting with the FDA to arrive at a consensus for the pathway for regulatory approval, including any additional clinical
or pharmacological studies that might be required to support regulatory approval or enhance marketing success.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our immunomedicine products are in the pre-clinical stage of
development, with the exception of a Phase II trial in human patients with stage II HER-2/neu positive breast cancer (U.S.), a
Phase I trial in human patients with prostate cancer (Athens, Greece) completed in August 2009, a Phase I trial in human patients
with breast or ovarian cancer (U.S.) and a Phase I trial in human volunteers of a peptide vaccine for use against the H5N1 avian
influenza virus (Beirut, Lebanon). Preliminary results from the Phase II breast cancer trial suggest a 46% reduction in breast
cancer recurrence in low HER2 expressing tumors, together with an excellent safety profile. We expect to complete the trial and
finalize results in the second half of the 2012 calendar year and while preliminary results are promising, they are not statistically
significant and final results could deviate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pre-clinical and clinical trials of our products, and the manufacturing
and marketing of our technologies, are subject to extensive, costly and rigorous regulation by governmental authorities in the
United States, Canada and other countries. The process of obtaining required regulatory approvals from the FDA and other regulatory
authorities often takes many years, is expensive and can vary significantly based on the type, complexity and novelty of the product
candidates. For these reasons, it is possible we will not receive regulatory approval for any prescription pharmaceutical product
candidate in any countries other than Ecuador, Lebanon, Algeria and India.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, we cannot be sure when or if we will be permitted
by regulatory agencies to undertake additional clinical trials or to commence any particular phase of clinical trials. Because
of this, statements in this Registration Statement or our reports filed with the SEC regarding the expected timing of clinical
trials cannot be regarded as actual predictions of when we will obtain regulatory approval for any &quot;phase&quot; of clinical
trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Delays in obtaining United States or other foreign approvals
for our oral insulin product could result in substantial additional costs to us, and, therefore, could adversely affect our ability
to continue operations. If regulatory approval is ultimately granted in any countries other than Ecuador, Lebanon, Algeria and
India, the approval may place limitations on the intended use of the product we wish to commercialize, and may restrict the way
in which we are permitted to market the product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Due to legal and factual uncertainties regarding the scope
and protection afforded by patents and other proprietary rights, we may not have meaningful protection from competition.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our long-term success will substantially depend upon our ability
to protect our proprietary technologies from infringement, misappropriation, discovery and duplication and avoid infringing the
proprietary rights of others. Our patent rights and the patent rights of biotechnology and pharmaceutical companies in general,
are highly uncertain and include complex legal and factual issues. Because of this, our pending patent applications may not be
granted. These uncertainties also mean that any patents that we own or will obtain in the future could be subject to challenge,
and even if not challenged, may not provide us with meaningful protection from competition. Due to our financial uncertainties,
we may not possess the financial resources necessary to enforce our patents. Patents already issued to us or our pending applications
may become subject to dispute, and any dispute could be resolved against us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Because a substantial number of patents have been issued in
the field of alternative drug delivery and because patent positions can be highly uncertain and frequently involve complex legal
and factual questions, the breadth of claims obtained in any application or the enforceability of our patents cannot be predicted.
Consequently, we do not know whether any of our pending or future patent applications will result in the issuance of patents or,
to the extent patents have been issued or will be issued, whether these patents will be subject to further proceedings limiting
their scope, will provide significant proprietary protection or competitive advantage, or will be circumvented, invalidated or
expire.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Also because of these legal and factual uncertainties, and because
pending patent applications are held in secrecy for varying periods in the United States and other countries, even after reasonable
investigation we may not know with certainty whether any products that we (or a licensee) may develop will infringe upon any patent
or other intellectual property right of a third party. For example, we are aware of certain patents owned by third parties that
such parties could attempt to use in the future in efforts to affect our freedom to practice some of the patents that we own or
have applied for. Based upon the science and scope of these third-party patents, we believe that the patents that we own or have
applied for do not infringe any such third-party patents; however, we cannot know for certain whether we could successfully defend
our position, if challenged. We may incur substantial costs if we are required to defend our intellectual property in patent suits
brought by third parties. These legal actions could seek damages and seek to enjoin testing, manufacturing and marketing of the
accused product or process. In addition to potential liability for significant damages, we could be required to obtain a license
to continue to manufacture or market the accused product or process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Risks Related to Marketing of Our Potential Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may not become, or stay, profitable even if our pharmaceutical
products are approved for sale.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Even if we obtain regulatory approval to market our oral insulin
product outside of Ecuador, India, Lebanon and Algeria or to market any other prescription pharmaceutical product candidate, many
factors may prevent the product from ever being sold in commercial quantities. Some of these factors are beyond our control, such
as:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">acceptance of the formulation or treatment by health care professionals and diabetic patients;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">the availability, effectiveness and relative cost of alternative diabetes or immunomedicine treatments
that may be developed by competitors; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 10pt">the availability of third-party (i.e. insurer and governmental agency) reimbursements.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will not receive significant revenues from Generex Oral-lyn&trade;
or any of our other pharmaceuticals products that may receive regulatory approval until we can successfully manufacture, market
and distribute them in the relevant markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have to depend upon others for marketing and distribution
of our products, and we may be forced to enter into contracts limiting the benefits we may receive and the control we have over
our products. We intend to rely on collaborative arrangements with one or more other companies that possess strong marketing and
distribution resources to perform these functions for us. We may not be able to enter into beneficial contracts, and we may be
forced to enter into contracts for the marketing and distribution of our products that substantially limit the potential benefits
to us from commercializing these products. In addition, we will not have the same control over marketing and distribution that
we would have if we conducted these functions ourselves.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may not be able to compete with treatments now being
marketed and developed, or which may be developed and marketed in the future by other companies.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our products will compete with existing and new therapies and
treatments. We are aware of a number of companies currently seeking to develop alternative means of delivering insulin, as well
as new drugs intended to replace insulin therapy at least in part. We are also aware of a number of companies currently seeking
to develop alternative means of enhancing and suppressing peptides. In the longer term, we also face competition from companies
that seek to develop cures for diabetes and other malignant, infectious, autoimmune and allergic diseases through techniques for
correcting the genetic deficiencies that underlie some of these diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Numerous pharmaceutical, biotechnology and drug delivery companies,
hospitals, research organizations, individual scientists and nonprofit organizations are engaged in the development of alternatives
to our technologies. Some of these companies have greater research and development capabilities, experience, manufacturing, marketing,
financial and managerial resources than we do. Collaborations or mergers between large pharmaceutical or biotechnology companies
with competing drug delivery technologies could enhance our competitors&rsquo; financial, marketing and other resources. Developments
by other drug delivery companies could make our products or technologies uncompetitive or obsolete. Accordingly, our competitors
may succeed in developing competing technologies, obtaining FDA approval for products or gaining market acceptance more rapidly
than we can.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Some of our most significant competitors, Pfizer, Eli Lilly,
and Novo Nordisk, have discontinued development and/or sale of their inhalable forms of insulin. Unlike inhaled insulin formulations,
Generex Oral-lyn&trade; is a buccally absorbed formulation with no residual pulmonary deposition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If government programs and insurance companies do not
agree to pay for or reimburse patients for our pharmaceutical products, our success will be impacted.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sales of our oral insulin formulation in Ecuador, Lebanon, Algeria
and India and our other potential pharmaceutical products in other markets will depend in part on the availability of reimbursement
by third-party payers such as government health administration authorities, private health insurers and other organizations. Third-party
payers often challenge the price and cost-effectiveness of medical products and services. Governmental approval of health care
products does not guarantee that these third-party payers will pay for the products. Even if third-party payers do accept our product,
the amounts they pay may not be adequate to enable us to realize a profit. Legislation and regulations affecting the pricing of
pharmaceuticals may change before our products are approved for marketing and any such changes could further limit reimbursement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Risks Related to Potential Liabilities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We face significant product liability risks, which may
have a negative effect on our financial condition.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The administration of drugs or treatments to humans, whether
in clinical trials or commercially, can result in product liability claims whether or not the drugs or treatments are actually
at fault for causing an injury. Furthermore, our pharmaceutical products may cause, or may appear to have caused, serious adverse
side effects (including death) or potentially dangerous drug interactions that we may not learn about or understand fully until
the drug or treatment has been administered to patients for some time. Product liability claims can be expensive to defend and
may result in large judgments or settlements against us, which could have a severe negative effect on our financial condition.
We maintain product liability insurance in amounts we believe to be commercially reasonable for our current level of activity and
exposure, but claims could exceed our coverage limits. Furthermore, due to factors in the insurance market generally and our own
experience, we may not always be able to purchase sufficient insurance at an affordable price. Even if a product liability claim
is not successful, the adverse publicity and time and expense of defending such a claim may interfere with our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Risks Related to the Market for Our Common Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our stock price is below $5.00 per share and is treated
as a &ldquo;penny stock&rdquo;, which places restrictions on broker-dealers recommending the stock for purchase.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our common stock is defined as &ldquo;penny stock&rdquo; under
the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act, and the rules promulgated thereunder. The
SEC has adopted regulations that define &ldquo;penny stock&rdquo; to include common stock that has a market price of less than
$5.00 per share, subject to certain exceptions. These rules include the following requirements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>broker-dealers must deliver, prior to the transaction a disclosure schedule prepared by the SEC relating to the penny stock
market;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>broker-dealers must disclose the commissions payable to the broker-dealer and its registered representative;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>broker-dealers must disclose current quotations for the securities;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if a broker-dealer is the sole market-maker, the broker-dealer must disclose this fact and the broker-dealers presumed control
over the market; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a broker-dealer must furnish its customers with monthly statements disclosing recent price information for all penny stocks
held in the customer&rsquo;s account and information on the limited market in penny stocks.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additional sales practice requirements are imposed on broker-dealers
who sell penny stocks to persons other than established customers and accredited investors. For these types of transactions, the
broker-dealer must make a special suitability determination for the purchaser and must have received the purchaser&rsquo;s written
consent to the transaction prior to sale. If our common stock remains subject to these penny stock rules these disclosure requirements
may have the effect of reducing the level of trading activity in the secondary market for our common stock. As a result, fewer
broker-dealers may be willing to make a market in our stock, which could affect a shareholder&rsquo;s ability to sell their shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The price of our common stock may be affected by a limited
trading volume, may fluctuate significantly and may not reflect the actual value of our business. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There may be a limited public market for our common stock
on the over the counter bulletin board market, and there can be no assurance that an active trading market will continue. An
absence of an active trading market could adversely affect our stockholders&rsquo; ability to sell our common stock in short
time periods, or at all. Our common stock has experienced, and is likely to experience in the future, significant price and
volume fluctuations that could adversely affect the market price of our common stock without regard to our operating
performance. In addition, we believe that factors, such as our sale of securities in connection with capital raising
activities, could cause the price of our common stock to fluctuate substantially. Thus, the price at which shares of our
common stock may trade from time to time may not reflect the actual value of our business or the actual value of our common
stock. From time to time, we may hire companies to assist us in pursuing investor relations strategies to generate increased
volumes of investment in our common stock. Such activities may result, among other things, in causing the price of our common
stock to increase on a short-term basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Furthermore, the stock market generally and the market for stocks
of companies with lower market capitalizations and small biopharmaceutical companies, like us, have from time to time experienced,
and likely will again experience significant price and volume fluctuations that are unrelated to the operating performance of a
particular company.&nbsp;&nbsp;During the third calendar quarter of 2008 and continuing to date, we, like many other publicly traded
companies, have experienced a sharp decline in the price of our stock attributable to concerns about the current global recession.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Risks Related to Ownership of Our Common Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If an exemption under state securities laws is not available
for resales of shares of common stock, state securities regulators have the authority to seek rescission of such resales and, in
some instances, may seek restitution or disgorgement of amounts received on such resales.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Because the shares of common stock registered under this registration
statement on Form S-1 have not been registered or qualified for resale under the securities laws of any state, an exemption from
registration or qualification under state law is necessary for compliance with state securities laws. Generex has taken no steps
to register or qualify, nor seek an exemption for, the resale of the shares of common stock under the securities laws of any state.
The availability of exemptions will depend on the laws of the particular state in which a holder of the shares resides and the
circumstances under which such holder seeks to sell the shares. If an exemption is not available but a resale of the shares is
effected, state securities laws give state securities regulators authority to seek rescission (or cancellation) of transactions
involving sales of securities that are not registered, qualified or exempted and, in some instances, authority to require restitution
or disgorgement of profits from the sales of such securities and to impose statutory interest or penalties on disgorged amounts.
While we are not aware of any state securities regulator taking action with respect to the resales of shares of our common stock,
we cannot provide any assurance that regulators will refrain from taking such action in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Provisions of our Restated Certificate of Incorporation
could delay or prevent the acquisition or sale of our business. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Restated Certificate of Incorporation permits our Board
of Directors to designate new series of preferred stock and issue those shares without any vote or action by our stockholders.
Such newly authorized and issued shares of preferred stock could contain terms that grant special voting rights to the holders
of such shares that make it more difficult to obtain stockholder approval for an acquisition of our business or increase the cost
of any such acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Provisions of the Delaware General Corporation Law may
prohibit us from making required payments with respect to our Series B and Series C 9% convertible preferred stock, which default
may constitute a violation of our certificate of incorporation or a breach of our contractual obligations to the holders of our
preferred stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are incorporated in the State of Delaware and are subject
to the provisions of the Delaware General Corporation Law (the &ldquo;DGCL&rdquo;). Section 170 of the DGCL provides, among other
things, that a Delaware corporation may declare and pay dividends upon shares of its capital stock out of its surplus, as defined
in and computed in accordance with Sections 154 and 244 of the DGCL.&nbsp;&nbsp;As of the date hereof, we have 1,172 shares of
our Series B 9% convertible preferred stock outstanding and 750 shares of our Series C 9% convertible preferred stock outstanding.
As of the date hereof, we have sufficient surplus to make dividend payments with respect to our outstanding Series B and Series
C<B><I> </I></B>9% convertible preferred stock, as well as sufficient surplus to make the make-whole payments that may be due to
the holders of our Series B and Series C<B><I> </I></B>9% convertible preferred stock, should such make-whole payments be deemed
a dividend under the DGCL.&nbsp;&nbsp;However, our surplus will decrease as we spend our capital on operational activities, unless
our spending is offset by capital-raising transactions. If our surplus is less than then-due dividend payments, including make-whole
payments if they are deemed a dividend under the DGCL, we will be prohibited by the DGCL from making the dividend or make-whole
payment, which may constitute a violation of our certificate of incorporation or a breach of our contractual obligations to the
holders of our Series B and Series C 9% convertible preferred stock.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our recent equity financings have and will dilute current
stockholders and could prevent the acquisition or sale of our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The equity financing transactions into which we have recently
entered have and will dilute current stockholders. At April 30, 2012, there were 55,148,530 shares of common stock issuable upon
exercise of the warrants that we issued in a private placement in March 2008, in the registered direct offerings conducted in June,
August and September 2009, in connection with the sales to Seaside 88, LP in April, May and June 2010, in the registered direct
offering in January to April 2011 and in the registered direct offering in July 2011. In addition, in connection with the private
placement that closed on February 1, 2012, an additional 13,333,333 shares of common stock are issuable upon conversion of the
recently issued Series B 9% Convertible Preferred Stock, as well as 13,333,333 shares of common stock issuable upon exercise of
the warrants in connection with such preferred stock and in connection with the private placement that closed on August 10, 2012,
an additional 9,375,000 shares of common stock are issuable upon conversion of the recently issued Series C 9% Convertible Preferred
Stock, as well as 9,375,000 shares of common stock issuable upon exercise of the warrants in connection with such preferred stock
and 59,921,621 additional shares issuable upon the triggering of the ratchet provisions of the above-mentioned warrants and the
Series B convertible preferred stock . Together the shares of common stock issuable upon exercise or conversion of the above-mentioned
warrants and preferred stock represent approximately 50% of the shares of common stock currently outstanding. Assuming the holders
of the warrants convert and exercise all of the warrants into shares of common stock, the number of shares of issued and outstanding
common stock will increase significantly, and current stockholders will own a smaller percentage of the outstanding common stock
of Generex. The issuance of shares of common stock pursuant to the warrants will also have a dilutive effect on earnings per share
and may adversely affect the market price of the common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, the issuance of shares of common stock upon exercise
of the warrants issued in the March 2008 private placement, the registered direct offerings in June, August and September 2009
and in connection with the sales to Seaside in April, May and June 2010, in the registered direct offering in January to April
2011, the registered direct offering in July 2011 and the private placements in February 2012 and August 2012, could have an anti-takeover
effect because such issuance will make it more difficult for, or discourage an attempt by, a party to obtain control of Generex
by tender offer or other means. The issuance of common stock upon the exercise of the warrants will increase the number of shares
entitled to vote, increase the number of votes required to approve a change of control of the company, and dilute the interest
of a party attempting to obtain control of the company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we raise funds through one or more additional equity financings
in the future, it will have a further dilutive effect on existing holders of our shares by reducing their percentage ownership.
The shares may be sold at a time when the market price is low because we are in need of the funds. This will dilute existing holders
more than if our stock price was higher. In addition, equity financings normally involve shares sold at a discount to the current
market price. Most of our outstanding warrants have price protection provisions, which decrease the exercise price of the warrant
and increase the number of shares which may be purchased upon exercise of the warrants, if we sell additional equity at an effective
price per common share less than the current exercise price of the warrant. Therefore, equity financings at a low price per share
will result in even more dilution to existing shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have made statements in this prospectus that may constitute
&quot;forward-looking statements&quot; within the meaning of the Private Securities Litigation Reform Act of 1995 (the &quot;Act&quot;).
The Act limits our liability in any lawsuit based on forward-looking statements that we have made. All statements, other than statements
of historical facts, included in this prospectus that address activities, events or developments that we expect or anticipate will
or may occur in the future, including such matters as our projections, future capital expenditures, business strategy, competitive
strengths, goals, expansion, market and industry developments and the growth of our businesses and operations, are forward-looking
statements. These statements can be identified by introductory words such as &quot;expects,&quot; &ldquo;anticipates,&rdquo; &quot;plans,&quot;
&quot;intends,&quot; &quot;believes,&quot; &quot;will,&quot; &quot;estimates,&quot; &quot;projects&quot; or words of similar meaning,
and by the fact that they do not relate strictly to historical or current facts. Our forward-looking statements address, among
other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">our expectations concerning product candidates for our technologies;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">our expectations concerning existing or potential development and license agreements for third-party collaborations and joint ventures;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">our expectations of when different phases of clinical activity may commence and conclude;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">our expectations of when regulatory submissions may be filed or when regulatory approvals may be received; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">our expectations of when commercial sales of our products may commence and when actual revenue from the product sales may be received.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any or all of our forward-looking statements may turn out to
be wrong. They may be affected by inaccurate assumptions that we might make or by known or unknown risks and uncertainties. Actual
outcomes and results may differ materially from what is expressed or implied in our forward-looking statements. Among the factors
that could affect future results are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">the inherent uncertainties of product development based on our new and as yet not fully proven technologies;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">the risks and uncertainties regarding the actual effect on humans of seemingly safe and efficacious formulations and treatments when tested clinically;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">the inherent uncertainties associated with clinical trials of product candidates;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">the inherent uncertainties associated with the process of obtaining regulatory approval to market product candidates;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">the inherent uncertainties associated with commercialization of products that have received regulatory approval;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%">
        <P STYLE="font: 10pt Symbol; margin: 0pt 0">&middot;</P>
        <P STYLE="font: 10pt Symbol; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Symbol; margin: 0pt 0">&middot;</P></TD>
    <TD STYLE="width: 93%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">the further decline in our stock price;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">our ability to pay dividends on our recently issued preferred
        stock;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 93%">our ability to obtain the necessary financing to fund our operations.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additional factors that could affect future results are set
forth above under the caption &ldquo;Risk Factors.&rdquo;&nbsp;&nbsp;We caution investors that the forward-looking statements contained
in this prospectus must be interpreted and understood in light of conditions and circumstances that exist as of the date of this
prospectus. We expressly disclaim any obligation or undertaking to update or revise forward-looking statements to reflect any changes
in management's expectations resulting from future events or changes in the conditions or circumstances upon which such expectations
are based.&nbsp;&nbsp;You are advised, however, to consult any further disclosures we make on related subjects in our 10-K, 10-Q
and 8-K reports to the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will not receive any of the proceeds from the sale of shares
of common stock in this offering. However, we may receive up to approximately $4.6 million upon exercise of the 57,629,955 warrants
covered by this prospectus in the event the warrants are exercised for cash that have an exercise price of $0.08 per share. We
intend to use any proceeds from the exercise of warrants for general corporate and working capital purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SELLING SECURITY HOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This prospectus relates to the resale of our common stock issued
to certain employees, consultants and placement agents, issuable upon exercise, of certain warrants issued in the March 31, 2008,
June 15, 2009, August 6, 2009, September 14, 2009, January 25, 2011, July 7, 2011, February 1, 2012 and August 10, 2012 offerings,
issuable upon conversion of shares of preferred stock issued in the February 1, 2012 and August 10, 2012 offerings, and issuable
in lieu of the cash payment of dividends and &ldquo;make-whole&rdquo; payments on such preferred stock payable through August 10,
2015. In addition, we are registering 1.20 times the number of shares issuable upon exercise of certain warrants originally issued
by us on August 10, 2012, which represents a good faith estimate of the maximum number of shares of common stock issuable upon
exercise of additional warrants that may be issuable if the price protection feature of the original warrants is triggered, as
well as 1.20 times the number of common shares underlying the Series C 9% Convertible Preferred Stock that may be issuable upon
conversion if the price protection feature of the preferred stock is triggered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table, based upon information currently known
by us, sets forth as of September 6, 2012: (i) the number of shares held of record or beneficially by the Selling Security Holders
as of such date and assuming conversion or exercise (as the case may be) of all warrants held by the Selling Security Holders as
of such date, (ii) the number of shares that may be offered under this prospectus, and (iii) a footnote reference to any material
relationship between us and the Selling Security Holder. The table below includes 120% of the shares issuable upon exercise of
the outstanding warrants originally issued on August 10, 2012 and the Series C 9% Convertible Preferred Stock, which both include
a price protection feature. In addition, the sum of the shares listed in the &ldquo;Shares That May Be Offered and Sold Hereby&rdquo;
column reflects the additional 4,050,000 shares of common stock which may be issued as payment for dividends on the Series C 9%
Convertible Preferred Stock through August 10, 2012 and &ldquo;make-whole payments&rdquo; upon conversion of the Series C 9% Convertible
Preferred Stock prior August 10, 2012 each in an amount equal to $270 per $1,000 of stated value of such preferred stock, less
the amount of all prior quarterly dividends paid thereon before the relevant conversion date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Beneficial ownership is determined in accordance with the rules
of the SEC and includes voting or investment power with respect to shares of common stock. Unless otherwise indicated below, to
our knowledge, all persons named in the table have sole voting and investment power with respect to the shares of common stock
and other securities beneficially owned by them. The inclusion of any securities in this table does not constitute an admission
of beneficial ownership for the person named below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">Selling Security Holder</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Beneficial <BR>Ownership Prior <BR>to this Offering <BR>(1),(2)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Shares that may <BR>be Offered and <BR>Sold Hereby <BR>(2),(3)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Beneficial <BR>Ownership After <BR>this Offering</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">% Holding <BR>After <BR>Completion of <BR>this Offering</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 48%; text-align: left">Seahawk Capital Partners, Inc. (4)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">5,069,142</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1,650,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">3,419,142</TD><TD STYLE="width: 1%; text-align: left"></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;*</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cranshire Capital, L.P. (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,430,902</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,605,926</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,824,976</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.4</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Iroquois Master Fund (6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,720,774</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,117,507</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,603,267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.3</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Iroquois Capital, LP (7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,508,882</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,437,478</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,071,404</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.4</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Iroquois Capital Opportunity Fund, LP (8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,329,497</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">808,181</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,521,316</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Rockmore Inv Master Trust (9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,630,596</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,202,534</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,428,062</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.5</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Alpha Capital Anstalt (10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,315,784</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,034,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,281,784</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.1</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Ellis International Ltd. (11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,650,217</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,290,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,360,217</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Momona Capital LLC (12)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,280,833</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,760,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">520,833</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Lane Ventures, Inc. (13)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,280,833</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,760,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">520,833</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Osher Capital Partners LLC (14)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,255,833</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,760,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">495,833</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Assameka Capital Inc. (15)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,835,967</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,114,332</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">721,635</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Whalehaven Opportunities Fund (16)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,041,665</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">486,110</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">555,555</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Whalehaven Capital Fund Limited (17)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">20,532,372</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">12,095,553</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,436,819</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2.3</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Holdings of Selling Security Holders **</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">161,883,297</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">88,121,621</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,761,676</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16.9</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Less than 1%</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>Includes all shares beneficially owned by the Selling Security Holders as of September 6, 2012.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>Includes shares of common stock issuable upon exercise of the warrants in connection with the March 31, 2008, June 15, 2009,
August 6, 2009, September 14, 2009, January 25, 2011, July 7, 2011, February 1, 2012 and August 10, 2012 offerings and issuable
upon conversion of shares of the Series B 9% Convertible Preferred Stock issued on February 1, 2012 and conversion of the Series
C 9% Convertible Preferred Stock issued on August 10, 2012. The warrants and preferred stock contain exercise and conversion limitations
providing that a holder thereof may not exercise or convert (as the case may be) to the extent (but only to the extent) that, if
after giving effect to such conversion or exercise (as the case may be), the holder or any of its affiliates would beneficially
own in excess of 4.99% or 9.99%, as applicable (the &ldquo;Maximum Percentage&rdquo;) of the outstanding shares of common stock
immediately after giving effect to such exercise or conversion (as the case may be). To the extent the above limitation applies,
the determination of whether a warrant or share of preferred stock shall be exercisable or convertible (vis-&agrave;-vis other
convertible, exercisable or exchangeable securities owned by the holder) shall, subject to such Maximum Percentage limitation,
be determined on the basis of the first submission to Generex for conversion, exercise or exchange (as the case may be).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">Accordingly, the number of shares of common stock
set forth in the table as being registered for a Selling Security Holder may exceed the number of shares of common stock that the
Selling Security Holder could own beneficially at any given time through its ownership of the warrants and preferred stock. Additionally,
for purposes of calculating the &ldquo;Beneficial Ownership After This Offering,&rdquo; the registered shares are being treated
as though they were all sold on the same day, and therefore because of the foregoing conversion and exercise limitations, the number
of shares reflected as being owned after the sale of the registered shares may be less than the shares underlying other remaining
warrants, if any, held by the Selling Security Holder. The number of shares offered by the Selling Security Holders in the table
above reflects 120% of the shares issuable upon conversion of the Series C 9% Convertible Preferred Stock and upon exercise of
the warrants issued in connection with the August 2012 offering; we are registering 120% of such number of shares as a good faith
estimate of the maximum number of shares of common stock that may be issuable if the price protection features of these preferred
stock and warrants are triggered. In the event such additional shares become issuable, the additional shares shall be allocated
among the Selling Security Holders holding such warrants proportionally with their current holdings. The incremental shares have
been allocated as follows in the table above, based on the current proportional holdings of the respective security holders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: left">Selling Security Holder</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: right">Estimated incremental shares <BR>which may be issuable due to <BR>warrant and preferred stock <BR>ratchet provisions</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: right">Estimated maximum <BR>number of shares issuable <BR>for dividends and "make- <BR>whole payments"</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 64%; text-align: left">Alpha Capital Anstalt</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">2,484,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">2,300,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Ellis International Ltd.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">540,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Momona Capital LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">135,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">125,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Lane Ventures, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">135,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">125,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Osher Capital Partners LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">135,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">125,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Assameka Capital Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">81,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Whalehaven Capital Fund Limited</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">540,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">500,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,050,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,750,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(3)</TD><TD>Assumes that the Selling Security Holders dispose of all the shares of common stock covered by this prospectus and do not acquire
or dispose of any additional shares of common stock. The Selling Security Holders are not representing, however, that any of the
shares covered by this prospectus will be offered for sale, and the Selling Security Holders reserve the right to accept or reject,
in whole or in part, any proposed sale of shares. We have entered into registration rights agreements with certain of the Selling
Security Holders pursuant to we are required to file a resale registration statement for the shares underlying the warrants and
Series C 9% Convertible Preferred Stock to enable the resale of such shares by such Selling Security Holder on a delayed or continuous
basis under Rule 415 of the Securities Act. Pursuant to the terms of the Series C 9% Convertible Preferred Stock, we also may make
dividend and &ldquo;make-whole&rdquo; payments with shares of our common stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(4)</TD><TD>Includes warrants to purchase 507,142 shares of common stock related to a placement agent agreement for Generex&rsquo;s June
2009 financing with an exercise price of $0.76 and an expiration date of December 15, 2014, in addition to 750,000 shares issuable
to Seahawk Capital Partners Inc. (&ldquo;Seahawk&rdquo;) pursuant to a finder&rsquo;s fee agreement, as well as 2,912,000 shares
of common stock held by Seahawk which were earned under a consulting agreement or previous finder&rsquo;s fee agreements. Joseph
Moscato and Michael Caridi are the principals of Seahawk and, as such, have voting and investment control over the securities beneficially
owned by Seahawk. As a result of the foregoing, each of Mr. Moscato and Mr. Caridi may be deemed to have beneficial ownership (as
determined under Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by
Seahawk.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(5)</TD><TD>Includes warrants to purchase 2,989,630 shares of common stock granted on June 15, 2009 with an exercise price of $0.76 and
an expiration date of December 15, 2014, warrants to purchase 28,327,637 shares of common stock granted on March 31, 2008 with
an exercise price of $0.08 and an expiration date of March 31, 2016; and warrants to purchase 5,113,635 shares of common stock
granted on March 31, 2008 with an exercise price of $0.08 and an expiration date of September 30, 2016. Cranshire Capital Advisors,
LLC (&ldquo;CCA&rdquo;) is the investment manager of Cranshire Capital, LP (&ldquo;Cranshire&rdquo;) and has voting control and
investment discretion over securities held by Cranshire. Mitchell P. Kopin, the president, the sole member and the sole member
of the Board of Managers of CCA, has voting control over CCA. As a result, each of Mr. Kopin and CCA may be deemed to have beneficial
ownership (as determined under Section 13(d) of the Securities Exchange Act of 1934, as amended) of the securities held by Cranshire.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(6)</TD><TD>Includes warrants to purchase 2,183,257 shares of common stock granted on June 15, 2009 with an exercise price of $0.76 and
an expiration date of December 15, 2014 and warrants to purchase 4,537,517 shares of common stock granted on March 31, 2008 with
an exercise price of $0.08 and an expiration date of March 31, 2016. Iroquois Capital Management L.L.C. (&ldquo;Iroquois Capital&rdquo;)
is the investment manager of Iroquois Master Fund, Ltd (&ldquo;IMF&rdquo;).&nbsp; Consequently, Iroquois Capital has voting control
and investment discretion over securities held by IMF.&nbsp; As managing members of Iroquois Capital, Joshua Silverman and Richard
Abbe make voting and investment decisions on behalf of Iroquois Capital in its capacity as investment manager to IMF.&nbsp; As
a result of the foregoing, Mr. Silverman and Mr. Abbe may be deemed to have beneficial ownership (as determined under Section 13(d)
of the Securities Exchange Act of 1934, as amended) of the securities held by IMF.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(7)</TD><TD>Includes warrants to purchase 9,508,884 shares of common stock granted on March 31, 2008 with an exercise price of $0.08 and
an expiration date of March 31, 2016. Iroquois Capital Management L.L.C. (&ldquo;Iroquois Capital&rdquo;) is the investment manager
of Iroquois Capital, LP (&ldquo;ICLP&rdquo;).&nbsp; Consequently, Iroquois Capital has voting control and investment discretion
over securities held by ICLP.&nbsp; As managing members of Iroquois Capital, Joshua Silverman and Richard Abbe make voting and
investment decisions on behalf of Iroquois Capital in its capacity as investment manager to ICLP.&nbsp; As a result of the foregoing,
Mr. Silverman and Mr. Abbe may be deemed to have beneficial ownership (as determined under Section 13(d) of the Securities Exchange
Act of 1934, as amended) of the securities held by ICLP.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(8)</TD><TD>Includes warrants to purchase 597,679 shares of common stock granted on June 15, 2009 with an exercise price of $0.76 and an
expiration date of December 15, 2014 and warrants to purchase 1,731,818 shares of common stock granted on March 31, 2008 with an
exercise price of $0.08 and an expiration date of March 31, 2016. Iroquois Capital Management L.L.C. (&ldquo;Iroquois Capital&rdquo;)
is the investment manager of Iroquois Capital Opportunity Fund, LP (&ldquo;ICOF&rdquo;).&nbsp; Consequently, Iroquois Capital has
voting control and investment discretion over securities held by ICOF.&nbsp; As managing members of Iroquois Capital, Joshua Silverman
and Richard Abbe make voting and investment decisions on behalf of Iroquois Capital in its capacity as investment manager to ICOF.&nbsp;
As a result of the foregoing, Mr. Silverman and Mr. Abbe may be deemed to have beneficial ownership (as determined under Section
13(d) of the Securities Exchange Act of 1934, as amended) of the securities held by ICOF.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(9)</TD><TD>Includes warrants to purchase 1,196,593 shares of common stock granted on June 15, 2009 with an exercise price of $0.76 and
an expiration date of December 15, 2014, warrants to purchase 10,320,368 shares of common stock granted on March 31, 2008 offering
with an exercise price of $0.08 and an expiration date of March 31, 2016 and warrants to purchase 5,113,635 shares of common stock
granted on March 31, 2008 with an exercise price of $0.08 and an expiration date of September 30, 2016. Rockmore Capital, LLC (&ldquo;Rockmore
Capital&rdquo;) serves as the investment manager to Rockmore Investment Master Fund Ltd (&ldquo;Rockmore Master Fund&rdquo;) and
in such capacity has investment discretion to vote and dispose of these shares. Mr. Bruce T. Bernstein and Mr. Brian Daly, as officers
of Rockmore Capital, are responsible for the portfolio management decisions of Rockmore Master Fund and may be deemed to have beneficial
ownership (as determined under Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially
owned by Rockmore. Each of Rockmore Capital, Messrs. Bernstein and Daly, disclaims beneficial ownership of these shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(10)</TD><TD>Includes warrants to purchase 132,536 shares of common stock granted on August 6, 2009 with an exercise price of $0.79 and
an expiration date of February 4, 2015, warrants to purchase 16,875,000 shares of common stock acquired in the February 2012 offering
with an exercise price of $0.08 and an expiration date of January 31, 2017, 13,022,500 shares of common stock underlying 1,042
shares of convertible preferred stock having a face value of $1,000 each, also acquired in the February 2012 offering, and warrants
to purchase 5,750,000 shares of common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration
date of August 10, 2017 and 5,750,000 shares of common stock underlying 460 shares of convertible preferred stock having a face
value of $1,000 each, also acquired in the August 2012 offering, in addition to 1,001,748 shares of common stock. Konrad Ackerman
(&ldquo;Mr. Ackerman&rdquo;) is the director of Alpha Capital Anstalt (&ldquo;Alpha&rdquo;) and in such capacity may be deemed
to have voting control and investment discretion over the securities held for the account of Alpha. As a result of the foregoing,
Mr. Ackerman may be deemed to have beneficial ownership (as determined under Section 13(d) of the Exchange Act) of any shares of
common stock of Generex deemed to be beneficially owned by Alpha.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(11)</TD><TD>Includes warrants to purchase 825,000 shares of common stock granted on September 14, 2009 with an exercise price of $1.00
and an expiration date of March 15, 2015 and warrants to purchase 1,875,000 shares of common stock acquired in the February 2012
offering with an exercise price of $0.08 and an expiration date of January 31, 2017 and warrants to purchase 1,250,000 shares of
common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 1,250,000
shares of common stock underlying 100 shares of convertible preferred stock having a face value of $1,000 each, also acquired in
the August 2012 offering, in addition to 1,410,217 shares of common stock. Mendy Sheen (&ldquo;Mr. Sheen&rdquo;) is the president
of Ellis International Ltd. (&ldquo;Ellis&rdquo;) and in such capacity may be deemed to have voting control and investment discretion
over the securities held for the account of Ellis. As a result of the foregoing, Mr. Sheen may be deemed to have beneficial ownership
(as determined under Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned
by Ellis.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(12)</TD><TD>Includes warrants to purchase 937,500 shares of common stock acquired in the February 2012 offering with an exercise price
of $0.08 an expiration date of January 31, 2017, 312,500 shares of common stock underlying 25 shares of convertible preferred stock
having a face value of $1,000 each, also acquired in the February 2012 offering and warrants to purchase 312,500 shares of common
stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 312,500 shares
of common stock underlying 25 shares of convertible preferred stock having a face value of $1,000 each, also acquired in the August
2012 offering, in addition to 145,833 shares of common stock. Arie Rabinowitz is the president of Momona Capital LLC. (&ldquo;Momona&rdquo;)
and in such capacity may be deemed to have voting control and investment discretion over the securities held for the account of
Momona. As a result of the foregoing, Mr. Rabinowitz may be deemed to have beneficial ownership (as determined under Section 13(d)
of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Momona.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(13)</TD><TD>Includes warrants to purchase 937,500 shares of common stock acquired in the February 2012 offering with an exercise price
of $0.08 and an expiration date of January 31, 2017and 312,500 shares of common stock underlying 25 shares of convertible preferred
stock having a face value of $1,000 each, also acquired in the February 2012 offering and warrants to purchase 312,500 shares of
common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 312,500
shares of common stock underlying 25 shares of convertible preferred stock having a face value of $1,000 each, also acquired in
the August 2012 offering, in addition to 145,833 shares of common stock. Joseph Hammer is the president of Lane Ventures Inc. (&ldquo;Lane&rdquo;)
and in such capacity may be deemed to have voting control and investment discretion over the securities held for the account of
Lane. As a result of the foregoing, Mr. Hammer may be deemed to have beneficial ownership (as determined under Section 13(d) of
the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Lane.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(14)</TD><TD>Includes warrants to purchase 937,500 shares of common stock acquired in the February 2012 offering with an exercise price
of $0.08 and an expiration date of January 31, 2017 and 375, 000 shares of common stock underlying 30 shares of convertible preferred
stock having a face value of $1,000 each, also acquired in the February 2012 offering and warrants to purchase 312,500 shares of
common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 312,500
shares of common stock underlying 25 shares of convertible preferred stock having a face value of $1,000 each, also acquired in
the August 2012 offering, in addition to 58,333 shares of common stock. Ari Kluger is the president of Osher Capital Partners LLC.
(&ldquo;Osher&rdquo;) and in such capacity may be deemed to have voting control and investment discretion over the securities held
for the account of Osher. As a result of the foregoing, Mr. Kluger may be deemed to have beneficial ownership (as determined under
Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Osher.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(15)</TD><TD>Includes warrants to purchase 624,999 shares of common stock granted on February 1, 2012 with an exercise price of $0.08 and
an expiration date of January 31, 2017 and 625,000 shares of common stock underlying 50 shares of convertible preferred stock having
a face value of $1,000 each, also acquired in the February 2012 offering, and warrants to purchase 187,500 shares of common stock
acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 187,500 shares
of common stock underlying 15 shares of convertible preferred stock having a face value of $1,000 each, also acquired in the August
2012 offering, in addition to 54,968 shares of common stock. Asher Brand is the president of Assameka Capital Inc. (&ldquo;Assameka&rdquo;)
and in such capacity may be deemed to have voting control and investment discretion over the securities held for the account of
Assameka. As a result of the foregoing, Mr. Brand may be deemed to have beneficial ownership (as determined under Section 13(d)
of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Assameka.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(16)</TD><TD>Includes warrants to purchase 1,041,665 shares of common stock granted on July 7, 2011 with an exercise price of $0.08 and
an expiration date of July 6, 2016. Eric Weisblum is the president of Whalehaven Opportunities Fund and in such capacity may be
deemed to have voting control and investment discretion over the securities held for the account of Whalehaven Opportunities Fund.
As a result of the foregoing, Mr. Weisblum may be deemed to have beneficial ownership (as determined under Section 13(d) of the
Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Whalehaven Opportunities Fund.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(17)</TD><TD>Includes warrants to purchase 159,043 shares of common stock granted on August 6, 2009 with an exercise price of $0.79 an expiration
date of February 4, 2015, warrants to purchase 7,499,999 shares of common stock granted on January 25, 2011 with an exercise price
of $0.08 an expiration date of January 24, 2016, warrants to purchase 5,208,330 shares of common stock granted on July 7, 2011
with an exercise price of $0.08 and an expiration date of July 6, 2016, warrants to purchase 2,812,500 shares of common stock acquired
in the February 2012 offering with an exercise price of $0.08 and an expiration date of January 31, 2017 and warrants to purchase
1,250,000 shares of common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of
August 10, 2017, 1,250,000 shares of common stock underlying 100 shares of convertible preferred stock having a face value of $1,000
each, also acquired in the August 2012 offering, in addition to 1,312,500 shares of common stock. Eric Weisblum is the president
of Whalehaven Capital Fund Limited and in such capacity may be deemed to have voting control and investment discretion over the
securities held for the account of Whalehaven Capital Fund Limited. As a result of the foregoing, Mr. Weisblum may be deemed to
have beneficial ownership (as determined under Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed
to be beneficially owned by Whalehaven Capital Fund Limited.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARKET PRICE OF OUR COMMON STOCK</B>
<B>AND RELATED STOCKHOLDER MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Market Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our common stock is quoted on the OTC Bulletin Board under the
symbol &quot;GNBT.OB.&quot; Our common stock was listed on the NASDAQ Capital Market (formerly the NASDAQ SmallCap Market) on June
5, 2003. On October 21, 2010, our common stock was delisted due to our failure to regain compliance with the $1.00 bid price requirement
for continued listing set forth in NASDAQ Listing Rule 5550(a)(2).&nbsp; From May 5, 2000 to June 4, 2003, our common stock was
listed on the NASDAQ National Market. From February 1998 to May 2000, the &quot;bid&quot; and &quot;asked&quot; prices for our
common stock were quoted on the OTC Bulletin Board operated by the National Association of Securities Dealers. Prior to February
1998, there was no public market for our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The table below sets forth prices for our common stock for each
fiscal quarter in the prior two years ended July 31, 2012. The prices below reflect the high and low sales prices for our common
stock reported on the NASDAQ Capital Market for the first quarter of fiscal 2011, and the high and low bid information for the
second, third and fourth quarters of fiscal 2011 and the four quarters of fiscal 2012. The over-the-counter market quotations reflect
inter-dealer prices, without retail mark-up, mark-down or commissions and may not represent actual transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Sales/Bid Prices</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">High</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Low</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-decoration: underline">Fiscal 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 74%; text-align: left">First Quarter</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.14</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.08</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Second Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.28</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.08</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Third Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.19</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.10</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Fourth Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.12</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.09</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-decoration: underline">Fiscal 2011</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">First Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.56</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.26</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Second Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.35</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.24</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Third Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.33</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.20</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Fourth Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.25</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.12</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of September 6, 2012, the high and low bid price of our common
stock was $0.0705 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of September 6, 2012, there were approximately 594 holders
of record of our common stock.&nbsp;&nbsp;Record holders do not include owners whose shares are held in street name by a broker
or other nominee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Dividends</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have not paid dividends on our common stock in the past and
have no present intention of paying dividends on our common stock in the foreseeable future. The Certificate of Designations pertaining
to our Series B 9% Convertible Preferred Stock imposes certain restrictions on our ability to pay dividends on our common stock.
For information about these restrictions and the dividend that we paid on our Series A 9% Convertible Preferred Stock and will
pay on our Series B and Series C 9% Convertible Preferred Stock, see the discussion under the caption &ldquo;Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&rdquo; under the heading &ldquo;Financial Condition, Liquidity
and Resources&rdquo; and the subheadings &ldquo;Financing &ndash; July 2011&rdquo;, &ldquo;Financing &ndash; February 2012&rdquo;
and &ldquo;Financing &ndash; August 2012&rdquo; in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Penny Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The SEC has adopted rules that regulate broker-dealer practices
in connection with transactions in penny stocks. Our stock is currently a &ldquo;penny stock.&rdquo; Penny stocks are generally
equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges. The
penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those rules, deliver
a standardized risk disclosure document prepared by the SEC, which: (a)&nbsp;contains a description of the nature and level of
risk in the market for penny stocks in both public offerings and secondary trading; (b)&nbsp;contains a description of the broker&rsquo;s
or dealer&rsquo;s duties to the customer and of the rights and remedies available to the customer with respect to a violation to
such duties or other requirements of securities&rsquo; laws; (c)&nbsp;contains a brief, clear, narrative description of a dealer
market, including bid and ask prices for penny stocks and significance of the spread between the bid and ask price; (d)&nbsp;contains
a toll-free telephone number for inquiries on disciplinary actions; (e)&nbsp;defines significant terms in the disclosure document
or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form as the SEC shall require
by rule or regulation. The broker-dealer also must provide to the customer, prior to effecting any transaction in a penny stock,
(a)&nbsp;bid and offer quotations for the penny stock; (b)&nbsp;the compensation of the broker-dealer and its salesperson in the
transaction; (c)&nbsp;the number of shares to which such bid and ask prices apply, or other comparable information relating to
the depth and liquidity of the market for such stock; and (d)&nbsp;monthly account statements showing the market value of each
penny stock held in the customer&rsquo;s account. In addition, the penny stock rules require that prior to a transaction in a penny
stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is
a suitable investment for the purchaser and receive the purchaser&rsquo;s written acknowledgment of the receipt of a risk disclosure
statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitably statement.&nbsp;&nbsp;These
disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Equity Compensation Plan Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table sets forth information as of July 31, 2011
regarding all of our existing compensation plans and individual compensation arrangements pursuant to which equity securities are
authorized for issuance to employees, non-employee directors or non-employees (such as directors, consultants and advisors) in
exchange for consideration in the form of services:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Number&nbsp;of <BR>securities&nbsp;to&nbsp;be <BR>issued&nbsp;upon <BR>exercise&nbsp;of <BR>outstanding <BR>options,&nbsp;warrants <BR>and&nbsp;rights</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Weighted-average <BR>exercise&nbsp;price&nbsp;of <BR>outstanding <BR>options,&nbsp;warrants <BR>and&nbsp;rights</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Number&nbsp;of <BR>securities <BR>remaining <BR>available&nbsp;for <BR>future&nbsp;issuance <BR>under&nbsp;equity <BR>compensation <BR>plans&nbsp;(excluding <BR>securities&nbsp;reflected <BR>in&nbsp;column&nbsp;(a))</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Plan&nbsp;Category&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">(a)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">(b)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">(c)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Equity compensation plans approved by security holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 61%; text-align: left">2000 Stock Option Plan</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">2,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">2001 Stock Option Plan</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,390,182</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.45</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,617,194</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">2006 Stock Plan</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,950,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.48</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,096,290</TD><TD STYLE="padding-bottom: 1pt; text-align: left">(1)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,340,182</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.46</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">20,713,484</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Equity compensation plans not approved by security holders (2)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,072,743</TD><TD STYLE="padding-bottom: 1pt; text-align: left">(2)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.97</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">10,412,925</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">0.61</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">20,713,484</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>Such shares are available for future issuance under the 2006 Stock Plan as options or restricted stock.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>Includes 490,625 warrants issued to various consultants pursuant to the agreements with them, 2,092,118 warrants issued to
placement agents as commission, and 490,000 warrants issued to various employees as part of their compensation arrangements. Please
see Management Discussion and Analysis of Financial Condition and Results of Operations under the heading Financial Condition,
Liquidity and Resources, and Note 14 of the Consolidated Financial Statements in Part II of this prospectus for more information
on such warrants.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BUSINESS AND PROPERTY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Corporate History and Structure</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We were incorporated in Delaware in September 1997 for the purpose
of acquiring Generex Pharmaceuticals Inc., a Canadian corporation formed in November 1995 to engage in pharmaceutical and biotechnological
research and development and other activities. Our acquisition of Generex Pharmaceuticals was completed in October 1997 in a transaction
in which the holders of all outstanding shares of Generex Pharmaceuticals exchanged their shares for shares of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In January 1998, we participated in a &quot;reverse acquisition&quot;
with Green Mt. P. S., Inc., an inactive Idaho corporation formed in 1983. As a result of this transaction, our shareholders (the
former shareholders of Generex Pharmaceuticals) acquired a majority (approximately 90%) of the outstanding capital stock of Green
Mt., we became a wholly-owned subsidiary of Green Mt., Green Mt. changed its corporate name to Generex Biotechnology Corporation
(&quot;Generex Idaho&quot;), and we changed our corporate name to GB Delaware, Inc. Because the reverse acquisition resulted in
our shareholders becoming the majority holders of Generex Idaho, we were treated as the acquiring corporation in the transaction
for accounting purposes. Thus, our historical financial statements, which essentially represented the historical financial statements
of Generex Pharmaceuticals, were deemed to be the historical financial statements of Generex Idaho.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In April 1999, we completed a reorganization in which we merged
with Generex Idaho. In this transaction, all outstanding shares of Generex Idaho were converted into our shares, Generex Idaho
ceased to exist as a separate entity, and we changed our corporate name back to &quot;Generex Biotechnology Corporation.&quot;
This reorganization did not result in any material change in our historical financial statements or current financial reporting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Subsidiaries</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Following our reorganization in 1999, Generex Pharmaceuticals
Inc., which is incorporated in Ontario, Canada, remained as our wholly-owned subsidiary. All of our Canadian operations are performed
by Generex Pharmaceuticals. Generex Pharmaceuticals is the 100% owner of 1097346 Ontario Inc., which is also incorporated in Ontario,
Canada.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In August 2003, we acquired Antigen Express, Inc. Antigen is
engaged in the research and development of technologies and immunomedicines for the treatment of malignant, infectious, autoimmune
and allergic diseases. Antigen also does business under the names Generex Oncology and Generex Infectious Diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We formed Generex (Bermuda), Inc., which is organized in Bermuda,
in January 2001 in connection with a joint venture with Elan International Services, Ltd., a wholly-owned subsidiary of Elan Corporation,
plc, to pursue the application of certain of our and Elan's drug delivery technologies, including our platform technology for the
buccal delivery of pharmaceutical products. In December 2004, we and Elan agreed to terminate the joint venture. Under the termination
agreement, we retained all of our intellectual property rights and obtained full ownership of Generex (Bermuda). Generex (Bermuda)
currently does not conduct any business activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We formed Generex Pharmaceuticals (USA) LLC, which is organized
in North Carolina, USA, in February 2006 as a wholly-owned subsidiary. Generex Pharmaceuticals (USA) LLC has not yet commenced
any business operations. We formed Generex Marketing &amp; Distribution Inc., which is organized in Ontario, Canada, in September
2006. Generex Marketing &amp; Distribution Inc. has not yet commenced any business operations. We formed Generex Biotechnology
BALTIC, a limited liability company, in the Republic of Latvia in June 2009. Generex Biotechnology BALTIC has not yet commenced
any business operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Overview of Business</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are engaged primarily in the research and development of
drug delivery systems and technologies. Our primary focus at the present time is our proprietary technology for the administration
of formulations of large molecule drugs to the oral (buccal) cavity using a hand-held aerosol applicator. Through our wholly-owned
subsidiary, Antigen, we have expanded our focus to include immunomedicines incorporating proprietary vaccine formulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that our buccal delivery technology is a platform
technology that has application to many large molecule drugs and provides a convenient, non-invasive, accurate and cost-effective
way to administer such drugs. We have identified several large molecule drugs as possible candidates for development, including
estrogen, heparin, monoclonal antibodies, human growth hormone and fertility hormones, but to date have focused our development
efforts primarily on one pharmaceutical product, Generex Oral-lyn&trade;, an insulin formulation administered as a fine spray into
the oral cavity using our proprietary hand-held aerosol spray applicator known as RapidMist&trade;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our wholly-owned subsidiary, Antigen, concentrates on developing
proprietary vaccine formulations that work by stimulating the immune system to either attack offending agents (i.e., cancer cells,
bacteria, and viruses) or to stop attacking benign elements (i.e., self proteins and allergens). Our immunomedicine products are
based on two platform technologies and are in the early stages of development. We continue clinical development of Antigen&rsquo;s
synthetic peptide vaccines designed to stimulate a potent and specific immune response against tumors expressing the HER-2/neu
oncogene for patients with HER-2/neu positive breast cancer in a Phase II clinical trial and patients with prostate cancer and
against avian influenza in two Phase I clinical trials. We recently initiated an additional Phase I clinical trial in patients
with either breast or ovarian cancer.&nbsp;&nbsp;The synthetic vaccine technology has certain advantages for pandemic or potentially
pandemic viruses, such as the H5N1 avian and H1N1 swine flu.&nbsp;&nbsp;In addition to developing vaccines for pandemic influenza
viruses, we have vaccine development efforts underway for seasonal influenza virus, HIV, HPV, melanoma, ovarian cancer, allergy
and Type I diabetes mellitus. We have established collaborations with clinical investigators at academic centers to advance these
technologies.<FONT STYLE="color: black"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To date, we have received regulatory approval in Ecuador, India
(subject to further study), Lebanon and Algeria for the commercial marketing and sale of Generex Oral-lyn&trade;. We have previously
submitted regulatory dossiers for Generex Oral-lyn&trade; in a number of other countries, including Bangladesh, Kenya, Jordan and
Armenia. While we believe these countries will ultimately approve our product for commercial sale, we do not anticipate recognizing
revenues in any of these jurisdictions in the next twelve months. No dossier related activities or product shipments have taken
place during 2011, nor are any expected to these countries during the remainder of 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black">In March 2008, we initiated Phase
III clinical trials for this product in the U.S. with the first patient screening for such trials at a clinical study site in Texas
in April 2008. Approximately 450 patients have been enrolled to date at approximately 70 clinical sites around the world, including
sites in the United States, Canada, Bulgaria, Poland, Romania, Russia, Ukraine and Ecuador. </FONT>The final subjects completed
the trial in August 2011. After appropriate validation, the data from approximately 450 patients was tabulated, reviewed and analyzed.
Those results from the Phase III trial along with a comprehensive review and supplemental analyses of approximately 40 prior Oral-lyn
clinical studies were compiled and submitted to the FDA in late December 2011 in a comprehensive package including a composite
metanalysis of all safety data. Following notification of the completion of their review, we will schedule a meeting with the FDA
to arrive at a consensus for the pathway for regulatory approval, including any additional clinical or pharmacological studies
that might be required to support regulatory approval or enhance marketing success.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In November 2008 we, together with our marketing partner Shreya
Life Sciences Pvt. Ltd., officially launched Generex Oral-lyn&trade; in India under marketing name of Oral Recosulin&trade;. Each
package of Oral Recosulin&trade; contains two canisters of our product along with one actuator. The product received regulatory
price approval in India in January 2009. Per the requirements of the regulatory approval in India, an in-country clinical study
must be completed in India with Oral Recosulin&trade; before commercial sales can commence. The study is currently under way, and,
when concluded, the outcomes will be submitted to the Indian regulatory agency for approval. Completion of the study and regulatory
agency approval is not currently expected until at least the third quarter of calendar year 2012, after which time commercial sales
can commence. We have not recognized any revenue from the Indian market to date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In December 2008, we, together with our marketing partner Benta
S.A., received an approval to market Generex Oral-lyn&trade; in Lebanon. The official product launch in Lebanon took place in May
2009. In May 2009, the Algerian health authorities granted us permission to import and sell Generex Oral-lyn&trade; for the treatment
of diabetes in Algeria. The official product launch in Algeria took place in October 2009. To date, we have not recognized any
revenue from the sales of Generex Oral-lyn&trade; in Algeria and very minimal revenues in Lebanon. We do not anticipate significant
revenues (if any) to be recognized from these jurisdictions in the next twelve months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Using our buccal delivery technology, we have also launched
a consumer/over-the-counter glucose spray called Glucose RapidSpray&trade;. We do not plan to expend significant resources to market
this product in the future. Revenues will not likely be significant unless we engage a major marketing partner to manufacture,
distribute, market and sell this product. In fiscal 2011 and in the first three quarters of fiscal 2012, we received modest revenues
from sales of our commercially available consumer/over-the-counter products. We are currently seeking a global purchaser or licensee
for the Glucose Rapid Spray Product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In October 2008, we announced the enrollment of subjects in
our bioequivalence clinical trial of MetControl&trade;, our proprietary Metformin medicinal chewing gum product, conducted in the
United States. The protocol for the study is an open-label, two-treatment, two-period, randomized, crossover study comparing MetControl&trade;
and immediate release Metformin&trade; tablets in healthy volunteers. The study results that we received and analyzed in December
2008 demonstrated bioequivalence. We have, however, determined that the economics of proceeding with this product do not warrant
the expenditure of further resources. We have not expended resources to further develop this product during the fiscal years ended
July 31, 2011 and 2010 or in the first three quarters of fiscal 2012 and do not currently plan to expend any further resources
on this product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We face competition from other providers of alternate forms
of insulin. Some of our most significant competitors, Pfizer, Eli Lilly, and Novo Nordisk, have announced that they will discontinue
development and/or sale of their inhalable forms of insulin. Generex Oral-lyn&trade; is not an inhaled insulin; rather, it is a
buccally absorbed formulation with no residual pulmonary deposition. We believe that our buccal delivery technology offers several
advantages, including the ease of use, portability, avoidance of pulmonary inhalation and safety profile. Furthermore, insulin
administered through the Generex Oral-lyn&trade; RapidMist&trade; technology is absorbed directly into the blood stream and not
only acts rapidly, but returns to baseline quickly, thereby minimizing the chance of developing hypoglycemia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Large pharmaceutical companies, such as Merck &amp; Co., Inc.,
GlaxoSmithKline PLC, Novartis, Inc., MedImmune Inc. (a subsidiary of Astra-Zeneca, Inc.) and others, also compete against us in
the oncology, immunomedicine and vaccine markets. These companies have competing experience and expertise in securing government
contracts and grants to support research and development efforts, conducting testing and clinical trials, obtaining regulatory
approvals to market products, as well as manufacturing and marketing approved products. As such, they are also considered significant
competitors in these fields of pharmaceutical products and therapies. There are also many smaller companies which are pursuing
similar technologies in these fields who are considered to be competitors of Generex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a development stage company. From inception through April
30, 2012, we have received only limited revenues from operations. In the nine months ended April 30, 2012, we generated $21,901
in revenue and in the fiscal years ended July 31, 2011, 2010 and 2009, we generated $291,628, $1,172,611 and $1,118,509 in revenue,
respectively. The revenue in fiscal 2009 included $500,000 relating to an upfront license fee for the signing of a license and
distribution agreement for Generex Oral-lyn&trade;, while the remainder of the revenue in each of the fiscal periods pertained
primarily to the sale of our consumer/over-the-counter products. These numbers do not reflect deferred sales to customers during
the respective periods with the right of return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We operate in only one segment: the research and development
of drug delivery systems and technologies for metabolic and immunological diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our Business Strategy</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our business model focuses on the research and development of
diabetes, oncology and infectious diseases drugs.&nbsp;&nbsp;This business model leverages the expertise of our management team,
scientific advisory board and the history of our company. Our goal is to develop next generation drugs for diabetes, oncology and
infectious disease by leveraging our buccal delivery technology to administer large and small molecule drugs, including insulin,
and proprietary vaccine formulations based upon two Antigen platform technologies to provide innovative biopharmaceutical products
that offer the potential for superior efficacy and safety over existing products.&nbsp;&nbsp;To achieve these goals, the key elements
of our strategy include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 94%">Completing current and planned Phase III clinical trials of Generex Oral-lyn&trade;, as well as any additional studies or trials which may be required in order to obtain regulatory approval in major and other jurisdictions;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 94%">Developing a proprietary portfolio of products for the treatment of diabetes through strategic partnerships licensing and acquisitions;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 94%">A keystone of Generex&rsquo;s strategy, announced at the annual meeting of stockholders in June 2011 is the proposed spin-out of Antigen Express as a separate company from Generex.&nbsp;&nbsp;Management believes that this action would allow Antigen to establish value for its immunotherapeutic vaccine technologies separate from the Generex buccal drug delivery platform technologies.&nbsp;&nbsp;The spin-out would be accomplished by the issuance of one or more dividends of Antigen Express stock to Generex stockholders;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 94%">Completing the ongoing Phase II clinical trials of Antigen&rsquo;s synthetic peptide vaccines designed to stimulate a potent and specific immune response against tumors expressing the HER-2/neu oncogene for patients with HER-2/neu positive breast cancer, conducting a Phase II prostate cancer trial and a Phase I trial in patients with breast or ovarian cancer;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 94%">Conducting&nbsp;&nbsp;further clinical trials of Antigen&rsquo;s synthetic peptide vaccines against avian (H5N1) influenza and initiating clinical trial of such vaccines against swine (H1N1) influenza; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 94%">Exploring other applications for our RapidMist platform buccal technology; morphine, LWH, fentanyl (all of which have undergone Phase I clinical studies), as well as cell therapy for late stage diabetes.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Buccal Delivery Technology and Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our buccal delivery technology involves the preparation of proprietary
formulations in which an active pharmaceutical agent is placed in a solution with a combination of absorption enhancers and other
excipients classified &ldquo;generally recognized as safe&rdquo; (&quot;GRAS&quot;) by the United States Food and Drug Administration
(the &quot;FDA&quot;) when used in accordance with specified quantities and other limitations. The resulting formulations are aerosolized
with a pharmaceutical grade chemical propellant and are administered to patients using our proprietary RapidMist&trade; brand metered
dose inhaler. The device is a small, lightweight, hand-held, easy-to-use aerosol applicator comprised of a container for the formulation,
a metered dose valve, an actuator and dust cap. Using the device, patients self-administer the formulations by spraying them into
the mouth. The device contains multiple applications, the number being dependent, among other things, on the concentration of the
formulation. Absorption of the pharmaceutical agent occurs in the buccal cavity, principally through the inner cheek walls. In
clinical studies of our flagship oral insulin product Generex Oral-lyn&trade;, insulin absorption in the buccal cavity has been
shown to be efficacious and safe.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Buccal Insulin Product &ndash; Generex Oral-Lyn&trade;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Insulin is a hormone that is naturally secreted by the pancreas
to regulate the level of glucose, a type of sugar, in the bloodstream. The term &ldquo;diabetes&rdquo; refers to a group of disorders
that are characterized by the inability of the body to properly regulate blood glucose levels. When glucose is abundant, it is
converted into fat and stored for use when food is not available. When glucose is not available from food, these fats are broken
down into free fatty acids that stimulate glucose production. Insulin acts by stimulating the use of glucose as fuel and by inhibiting
the production of glucose. In a healthy individual, a balance is maintained between insulin secretion and glucose metabolism.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There are two major types of diabetes. Type 1 diabetes (juvenile
onset diabetes or insulin dependent diabetes) refers to the condition where the pancreas produces little or no insulin. Type 1
diabetes accounts for 5-10 percent of diabetes cases. It often occurs in children and young adults. Type 1 diabetics must take
daily insulin injections, typically three to five times per day, to regulate blood glucose levels. Generex Oral-lyn&trade; provides
a needle-free means of delivering insulin for these patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In Type 2 diabetes (adult onset or non-insulin dependent diabetes
mellitus), the body does not produce enough insulin, or cannot properly use the insulin produced. Type 2 diabetes is the most common
form of the disease and accounts for 90-95 percent of diabetes cases. In addition to insulin therapy, Type 2 diabetics may take
oral drugs that stimulate the production of insulin by the pancreas or that help the body to more effectively use insulin. Generex
Oral-lyn&trade; provides a simple means of delivering needed insulin to this major cohort of individuals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Current studies in diabetes have identified a new condition
closely related to diabetes, called impaired glucose tolerance (IGT). People with IGT do not usually meet the criteria for the
diagnosis of diabetes mellitus. They have normal fasting glucose levels but two hours after a meal their blood glucose level is
far above normal. With the increase use of glucose tolerance tests the number of people diagnosed with this pre-diabetic condition
is expanding exponentially. Per the 2011 Diabetes Atlas, published by the International Diabetes Federation (IDF), approximately
26 million people in the United States and 280 million people world-wide suffer from IGT. Generex Oral-lyn&trade; is an ideal solution
to providing meal-time insulin to the millions of IGT sufferers. This therapeutic area is currently being investigated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If not treated, diabetes can lead to blindness, kidney disease,
nerve disease, amputations, heart disease and stroke. Each year, between 12,000 and 24,000 people suffer vision impairment or complete
blindness because of diabetes. Diabetes is also the leading cause of end-stage renal disease (kidney failure), accounting for about
40 percent of new cases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, about 60-70 percent of people with diabetes have
mild to severe forms of diabetic nerve damage, which, in severe forms, can lead to lower limb amputations. Diabetics are also two
to four times more likely to have heart disease, which is present in 75 percent of diabetes-related deaths, and are two to four
times more likely to suffer a stroke.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There is no known cure for diabetes. The IDF estimates that
there are currently almost 366 million diabetics worldwide per their 2011 Diabetes Atlas and is expected to affect over 552 million
people by the year 2030. There are estimated to be over 37 million people suffering from diabetes in North America alone and diabetes
is the second largest cause of death by disease in North America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A substantial number of large molecule drugs (<FONT STYLE="font-family: Times New Roman, Times, Serif"><I>i.e.</I></FONT>,
drugs composed of molecules with a high molecular weight and fairly complex and large spatial orientation) have been approved for
sale in the United States or are presently undergoing clinical trials as part of the process to obtain such approval, including
various proteins, peptides, monoclonal antibodies, hormones and vaccines. Unlike small molecule drugs, which generally can be administered
by various methods, large molecule drugs historically have been administered predominately by injection. The principal reasons
for this have been the vulnerability of large molecule drugs to digestion and the relatively large size of the molecule itself,
which makes absorption into the blood stream through the skin inefficient or ineffective. The RapidMist technology provides a recognized
and proved drug delivery system for the delivery of large molecules directly into the blood stream with the attendant advantages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In May 2005, we received approval from the Ecuadorian Ministry
of Public Health for the commercial marketing and sale of Generex Oral-lyn&trade; for treatment of Type 1 and Type 2 diabetes.
We have successfully completed the delivery and installation of a turnkey Generex Oral-lyn&trade; production operation at the facilities
of PharmaBrand in Quito, Ecuador. The first commercial production run of Generex Oral-lyn&trade; in Ecuador was completed in May,
2006. While Ecuador production capability may be sufficient to meet the needs of South America, it is believed to be insufficient
for worldwide production for future commercial sales and clinical trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On the basis of the test results in Ecuador and other pre-clinical
data, we made an IND submission to Health Canada (Canada's equivalent to the FDA) in July 1998, and received permission from the
Canadian regulators to proceed with clinical trials in September 1998. We filed an Investigational New Drug application with the
FDA in October 1998, and received FDA approval to proceed with human trials in November 1998. Annual reports have been filed with
the FDA each year since that time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We began our clinical trial programs in Canada and the United
States in January 1999. Between January 1999 and September 2000, we conducted clinical trials of our insulin formulation involving
approximately 200 subjects with Type 1 and Type 2 diabetes and healthy volunteers. The study protocols in most trials involved
administration of two different doses of our insulin formulation following either a liquid Sustacal meal or a standard meal challenge.
The objective of these studies was to evaluate our insulin formulation's efficacy in controlling post-prandial (meal related) glucose
levels. These trials demonstrated that our insulin formulation controlled post-prandial hyperglycemia in a manner comparable to
injected insulin. In April 2003, a Phase II-B clinical trial protocol was approved in Canada. In September 2006, a Clinical Trial
Application relating to our Generex Oral-lyn&trade; protocol for late-stage trials was approved by Health Canada. The FDA&rsquo;s
review period for the protocol lapsed without objection in July 2007.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In late April 2008, we initiated Phase III clinical trials in
North America for Generex Oral-lyn&trade; with the first subject screening in Texas. Other clinical sites participating in the
study are located in the United States (Texas, Maryland, Minnesota and California), Canada (Alberta), European Union (Romania,
Poland and Bulgaria), Eastern Europe (Russia and Ukraine),) and Ecuador. At present, approximately 450 subjects have been enrolled
in the program at approximately 70 clinical sites around the world. The Phase III protocol called for a six-month trial with a
six-month follow-up with the primary objective to compare the efficacy of Generex Oral-lyn&trade; and the RapidMist&trade; Diabetes
Management System with that of standard regular injectable human insulin therapy as measured by HbA1c, in patients with Type-1
diabetes mellitus. The final subjects completed the trial in August 2011. After appropriate validation, the data from approximately
450 patients was tabulated, reviewed and analyzed. Those results from the Phase III trial along with a comprehensive review and
supplemental analyses of approximately 40 prior Oral-lyn clinical studies were compiled and submitted to the FDA in late December
2011 in a comprehensive package including a composite metanalysis of all safety data. Following notification of the completion
of their review, we will schedule a meeting with the FDA to arrive at a consensus for the pathway for regulatory approval, including
any additional clinical or pharmacological studies that might be required to support regulatory approval or enhance marketing success.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We engaged a global clinical research organization to provide
many study related site services, including initiation, communication with sites, project management and documentation; a global
central lab service company to arrange for the logistics of kits and blood samples shipment and testing; an Internet-based clinical
electronic data management company to assist us with global data entry, project management and data storage/processing of the Phase
III clinical trial and regulatory processes. We contracted with our third-party manufacturers to produce sufficient quantities
of the RapidMist&trade; components, the insulin, and the raw material excipients required for the production of clinical trial
batches of Generex Oral-lyn&trade;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As described above, we have obtained regulatory approval for
the commercial marketing and sale of Generex Oral-lyn&trade; in Ecuador, India (subject to further study), Lebanon and Algeria.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Consumer/Over-the-Counter Glucose Product Line</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Using our proprietary buccal delivery technology, we have developed
several formulations of glucose sprays. In the first quarter of fiscal year 2007, we introduced, Glucose RapidSpray&trade;. This
product uses our proprietary RapidMist&trade; brand metered dose inhaler platform technology to provide an alternative for people
who require or want additional glucose in their diet and delivers a fat-free, low-calorie glucose formulation directly into the
mouth. In fiscal 2011, 2010 and 2009, we received modest revenues from sales of our commercially available consumer/over-the-counter
products, but do not intend to expend significant resources to market these products in 2012 or in future years. Revenues will
not likely be significant, unless we engage a major marketing partner to manufacture, distribute, market and sell this product.
We had entered into a preliminary marketing and distribution agreement with Merck, S.A. de C.V. in Mexico for the distribution
of, Glucose RapidSpray&trade; brand formulated glucose spray product. Merck was considering the potential to produce, market, and
distribute the product in Mexico as Diabion&reg; GlucoShot&reg;. Merck has since decided not to pursue this opportunity. To date,
we have received modest revenues from sales of these products which were available in retail stores and independent pharmacies
in the United States and Canada. We are currently seeking a global purchaser or licensee for the Glucose Rapid Spray Product who
is also capable of manufacturing and distributing the product on a global scale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other Potential Buccal Products</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have had discussions regarding possible research collaborations
with various pharmaceutical companies concerning use of our large molecule drug delivery technology with other compounds, including
monoclonal antibodies, human growth hormone, fertility hormones, estrogen and heparin, and a number of vaccines. We are currently
pursuing development opportunities to complement our insulin therapy. <FONT STYLE="text-underline-style: none; color: windowtext">Amarantus
BioSciences and Generex Biotechnology announced in June 2011 that they are working towards establishing a collaboration on cell
therapy for late stage diabetes</FONT>, but as of the date of this report, no definitive agreements have been signed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In October 2008, we announced the enrollment of subjects in
our bioequivalence clinical trial of MetControl&trade;, our proprietary Metformin medicinal chewing gum product, conducted in the
United States. The protocol for the study is an open-label, two-treatment, two-period, randomized, crossover study comparing MetControl&trade;
and immediate release Metformin&trade; tablets in healthy volunteers. The study results that we received and analyzed in December
2008 demonstrated bioequivalence. We have, however, determined that the economics of proceeding with this product do not warrant
the expenditure of further resources. We have not expended resources to further develop this product during the fiscal years ended
July 31, 2011 and 2010 or in the first three quarters of fiscal 2012 and do not currently plan to expend any further resources
on this product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Immunomedicine Technology and Products</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: lime"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our wholly-owned subsidiary Antigen Express is developing proprietary
vaccine formulations based upon two platform technologies that were discovered by its founder, the Ii-Key hybrid peptides and Ii-Suppression.
These technologies are applicable for either antigen-specific immune stimulation or suppression, depending upon the dosing and
formulation of its products. Using active stimulation, we are focusing on major diseases such as breast, prostate and ovarian cancer,
melanoma, influenza (including H5N1 avian and H1N1 swine flu) and HIV. Autoimmune diseases such as diabetes and multiple sclerosis
are the focus of our antigen-specific immune suppression work.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Antigen&rsquo;s immunotherapeutic vaccine AE37 is currently
in Phase II clinical trials for patients with HER-2/neu positive breast cancer. The trial is being conducted with the United States
Military Cancer Institute's (USMCI) Clinical Trials Group and will examine the rate of relapse in patients with node-positive or
high-risk node-negative breast cancer after two years. The study is randomized and will compare patients treated with AE37 plus
the adjuvant GM-CSF versus GM-CSF alone. The Phase II trial follows a Phase I trial that demonstrated safety, tolerability, and
immune stimulation of the AE37 vaccine in breast cancer patients.<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Based on positive results in trials of the AE37 vaccine in breast
cancer patients, we entered into an agreement in August 2006 with the Euroclinic, a private center in Athens, Greece, to commence
clinical trials with the same compound as an immunotherapeutic vaccine for prostate cancer. A Phase I trial involving 29 patients
was completed in August 2009, which similarly showed safety, tolerability and induction of a specific immune response. Agreements,
as well as a protocol, are in place for initiation of a Phase II clinical trial once additional funding is available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: lime"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The same technology used to enhance immunogenicity is being
applied in the development of a synthetic peptide vaccine for H5N1 avian influenza and the 2009 H1N1 swine flu. In April 2007,
a Phase I clinical trial of Antigen&rsquo;s proprietary peptides derived from the hemagglutinin protein of the H5N1 avian influenza
virus was initiated in healthy volunteers in the Lebanese-Canadian Hospital in Beirut, Lebanon. We have completed the first portion
of the Phase I trial. Modified peptide vaccines for avian influenza offer several advantages over traditional egg-based or cell-culture
based vaccines. Modified peptide vaccines can be manufactured by an entirely synthetic process which reduces cost and increases
both the speed and quantity of vaccine relative to egg- or cell-culture based vaccines. Another advantage is that the peptides
are derived from regions of the virus that are similar enough in all H5N1 and H1N1 virus strains such that they would not have
to be newly designed for the specific strain to emerge in a pandemic.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A Physician&rsquo;s Investigational New Drug (&ldquo;IND&rdquo;)
application for the Phase I and Phase II trials in patients with stage II HER-2/neu positive breast cancer has been filed with
the FDA. The Phase I trial was completed at the Walter Reed Army Medical Center in Washington, D.C., and the Phase II trial is
taking place at 13 sites, including 11 in the U.S., one in Germany and one in Greece. A Physician&rsquo;s Investigational New Drug
application for a Phase I trial in patients with breast or ovarian cancer also has been filed with the FDA and this Phase I trial
is being conducted in Dallas, Texas at the Mary Crowley Cancer Center. Applications were filed and approvals obtained for a Phase
I prostate cancer trial using AE37 in Athens, Greece from the Hellenic Organization of Drugs, and this Phase I trial was completed
in August 2009. The Ministry of Health in Lebanon gave approval for Phase I trial of our experimental H5N1 prophylactic vaccine
in Beirut, Lebanon following submission of an application. All other immunomedicine products are in the pre-clinical stage of development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Government Regulation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our research and development activities and the manufacturing
and marketing of our pharmaceutical products are subject to extensive regulation by the FDA in the United States, Health Canada
in Canada and comparable designated regulatory authorities in other countries. Among other things, extensive regulations require
us to satisfy numerous conditions before we can bring products to market. While these regulations apply to all competitors in our
industry, having a technology that is unique and novel extends the requisite review period by the various divisions within the
FDA and other regulators. Also, other companies in our industry are not limited primarily to products which still need to be approved
by government regulators, as we are now.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If requisite regulatory approvals are not obtained and maintained,
our business will be substantially harmed. In many cases, we expect that extant and prospective development partners will participate
in the regulatory approval process. The following discussion summarizes the principal features of food and drug regulation in the
United States and other countries as they affect our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>United States</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All aspects of our research, development and foreseeable commercial
activities relating to pharmaceutical products are subject to extensive regulation by the FDA and other regulatory authorities
in the United States. United States federal and state statutes and regulations govern, among other things, the testing, manufacturing,
safety, efficacy, labeling, storage, record keeping, approval, advertising and promotion of pharmaceutical products. The regulatory
approval process, including clinical trials, usually takes several years and requires the expenditure of substantial resources.
If regulatory approval of a product is granted, the approval may include significant limitations on the uses for which the product
may be marketed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The steps required before a pharmaceutical product may be marketed
in the United States include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Conducting appropriate pre-clinical laboratory evaluations, including animal studies, in compliance with the FDA&rsquo;s Good
Laboratory Practice (&ldquo;GLP&rdquo;) requirements, to assess the potential safety and efficacy of the product, and to characterize
and document the product&rsquo;s chemistry, manufacturing controls, formulation and stability;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Submitting the results of these evaluations and tests to the FDA, along with manufacturing information, analytical data, and
protocols for clinical studies, in an IND Application, and receiving approval from the FDA that the clinical studies proposed under
the IND are allowed to proceed;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Obtaining approval of Institutional Review Boards (&ldquo;IRBs&rdquo;) to administer the product to humans in clinical studies;
conducting adequate and well-controlled human clinical trials in compliance with the FDA&rsquo;s Good Clinical Practice (&ldquo;GCP&rdquo;)
requirements that establish the safety and efficacy of the product candidate for the intended use;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Developing manufacturing processes which conform to the FDA&rsquo;s current Good Manufacturing Practices, or cGMPs, as confirmed
by FDA inspection;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Submitting to the FDA the results of pre-clinical studies, clinical studies, and adequate data on chemistry, manufacturing
and control information to ensure reproducible product quality batch after batch, in an NDA or Biologics License Application (&ldquo;BLA&rdquo;);
and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Obtaining FDA approval of the NDA, including inspection and approval of the product manufacturing facility as compliant with
cGMP requirements, prior to any commercial sale or shipment of the pharmaceutical agent.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Quality and pre-clinical tests and studies include: laboratory
evaluation of Drug Substance and Drug Product chemistry, formulation/manufacturing, and stability profiling, as well as a large
number of animal studies to assess the potential safety and efficacy of each product. Typically, the pre-clinical studies consist
of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Pharmacology</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Primary
and Secondary Pharmacodynamics</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Safety
Pharmacology</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;&#9;&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Pharmacodynamics</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Pharmacokinetics (&ldquo;PK&rdquo;)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Symbol">&middot;</FONT>&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">Single
and Multiple Dose Kinetics</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;&#9;&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tissue
Distribution</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Symbol">&middot;</FONT>&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="color: black">&#9;</FONT><FONT STYLE="font-size: 10pt">Metabolism</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Symbol">&middot;</FONT>&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">PK
Drug Interactions</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Symbol">&middot;</FONT>&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">Other
PK studies</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Toxicology</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;&#9;&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Single
and Multiple Dose Toxicity</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;&#9;&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Genotoxicity</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;&#9;&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carcinogenicity</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;&#9;&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reproduction
Toxicity</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;&#9;&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Toxicity</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The results of the quality and pre-clinical tests/studies, in
addition to any non-clinical pharmacology, are submitted to the FDA along with the initial clinical study protocol (see descriptive
of process below) as part of the initial IND and are reviewed by the FDA before the commencement of human clinical trials. Unless
the FDA objects to it, the IND becomes effective 30 days following its receipt by the FDA. The FDA reviews all protocols, protocol
amendments, adverse event reports, study reports, and annual reports in connection with a new pharmacological product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The IND for our oral insulin formulation became effective in
November 1998. Amendments are also subsequently filed as new Clinical Studies and their corresponding Study Protocols are proposed.
In July 2007, we received a no objection clearance to initiate our Phase III study protocol for our oral insulin product. The Physician&rsquo;s
Investigational New Drug Application for the Phase 1 and Phase II trial of AE37, Antigen&rsquo;s synthetic peptide vaccine designed
to stimulate a potent and specific immune response against tumors expressing the HER-2/neu oncogene, in patients with stage II
HER-2/neu positive breast cancer became effective in March 2006.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Clinical trials involve the administration of a new drug to
humans under the supervision of qualified investigators. The protocols for the trials must be submitted to the FDA as part of the
IND. Also, each clinical trial must be approved and conducted under the auspices of an IRB, which considers, among other things,
ethical factors, the safety of human subjects, and the possible liability of the institution conducting the clinical trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Clinical trials are typically conducted in three sequential
phases (Phase I, Phase II, and Phase III), but the phases may overlap. Phase I clinical trials test the drug on healthy human subjects
for safety and other aspects, but usually not effectiveness. Phase II clinical trials are conducted in a limited patient population
to gather evidence about the efficacy of the drug for specific purposes, to determine dosage tolerance and optimal dosages, and
to identify possible adverse effects and safety risks. When a compound has shown evidence of efficacy and acceptable safety in
Phase II evaluations, Phase III clinical trials are undertaken to evaluate and confirm clinical efficacy and to test for safety
in an expanded patient population at clinical trial sites in different geographical locations.&nbsp; The FDA and other regulatory
authorities require that the safety and efficacy of therapeutic product candidates be supported through at least two adequate and
well-controlled Phase III clinical trials (known as &ldquo;Pivotal Trials&rdquo;).&nbsp; The successful completion of Phase III
clinical trials is a mandatory step in the approval process for the manufacturing, marketing, and sale of products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the United States, the results of quality, pre-clinical studies
and clinical trials, if successful, are submitted to the FDA in an NDA to seek approval to market and commercialize the drug product
for a specified use. The NDA is far more specific than the IND and must also include proposed labeling and detailed technical sections
based on the data collected. The FDA is governed by the Prescription Drug User Fee Act (&ldquo;PDUFA&rdquo;) regarding response
time to the application, which is generally 12 months (and shorter for a priority application). It may deny a NDA if it believes
that applicable regulatory criteria are not satisfied. The FDA also may require additional clarifications on the existing application
or even additional testing for safety and efficacy of the drug. We cannot be sure that any of our proposed products will receive
FDA approval. The multi-tiered approval process means that our products could fail to advance to subsequent steps without the requisite
data, studies, and FDA approval along the way. Even if approved by the FDA, our products and the facilities used to manufacture
our products will remain subject to review and periodic inspection by the FDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To supply drug products for use in the United States, foreign
and domestic manufacturing facilities must be registered with, and approved by, the FDA. Manufacturing facilities must also comply
with the FDA's cGMPs, and such facilities are subject to periodic inspection by the FDA. Products manufactured outside the United
States are inspected by regulatory authorities in those countries under agreements with the FDA.&nbsp; To comply with cGMPs, manufacturers
must expend substantial funds, time and effort in the area of production and quality control.&nbsp; The FDA stringently applies
its regulatory standards for manufacturing. Discovery of previously unknown problems with respect to a product, manufacturer or
facility may result in consequences with commercial significance. These include restrictions on the product, manufacturer or facility,
suspensions of regulatory approvals, operating restrictions, delays in obtaining new product approvals, withdrawals of the product
from the market, product recalls, fines, injunctions and criminal prosecution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">One final hurdle that is closely associated with the cGMP inspections
is the pre-approval inspection that the FDA carries out prior to the issuance of a marketing license. FDA inspectors combine cGMP
compliance with a review of research and development documents that were used in the formal NDA. A close inspection of historic
data is reviewed to confirm data and to demonstrate that a company has carried out the activities as presented in the NDA. This
is generally a long inspection and requires a team of individuals from the company to &ldquo;host&rdquo; the FDA inspector(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Foreign Countries</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Before we are permitted to market any of our products outside
of the United States, those products will be subject to regulatory approval by foreign government agencies similar to the FDA.&nbsp;
These requirements vary widely from country to country. Generally, however, no action can be taken to market any drug product in
a country until an appropriate application has been submitted by a sponsor and approved by the regulatory authorities in that country.
Again, similar to the FDA, each country will mandate a specific financial consideration for the Marketing Application dossiers
being submitted. Although an important consideration, FDA approval does not assure approval by other regulatory authorities. The
current approval process varies from country to country, and the time spent in gaining approval varies from that required for FDA
approval. The Canadian regulatory process is substantially similar to that of the United States. To date, we have received the
following foreign regulatory approval for our product candidates:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We obtained regulatory approval to begin clinical trials of our oral insulin formulation in Canada in November 1998. In April
2003, we received approval of an Oral-lyn&trade; Phase II-B clinical trial protocol in Canada. In September 2006 Health Canada
approved our Clinical Trial Application in respect of our proposed Generex Oral-lyn&trade; protocol for late-stage trials; we expect
to use the data collected from these trials in the New Drug Submission that will be prepared concurrently with the progression
of the late-stage trials.<FONT STYLE="color: black"> </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We obtained regulatory approval in Canada to begin clinical trials of our buccal morphine product in March 2002 and our fentanyl
product in October 2002.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In May 2005, we received approval from the Ecuadorian Ministry of Public Health for the commercial marketing and sale of Generex
Oral-lyn&trade; for treatment of Type 1 and Type 2 diabetes. To date we have not recognized any revenue from the sale of Generex
Oral-lyn&trade; in Ecuador and we are not currently expending any resources to further commercialization in this country.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In November 2007, we obtained approval for the importation and commercial marketing and sale in India of Generex Oral-lyn&trade;
under the marketing name of Oral Recosulin<FONT STYLE="color: black">&trade;</FONT> from the Central Drugs Standard Control Organization
(CDSCO), Directorate General of Health Services, Government of India, which is responsible for authorizing marketing approval of
all new pharmaceutical products in India. Per the requirements of the approval, an in-country clinical study must be completed
in India with Oral Recosulin&trade; before commercial sales can commence. That study is currently underway and completion is expected
in the second half of 2012.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Applications were filed and approvals obtained in May 2007 for a Phase I prostate cancer trial using AE37 in Athens, Greece
from the Hellenic Organization of Drugs. This Phase I trial was completed in August 2009.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The Ministry of Health in Lebanon gave approval for the Phase I trial of our experimental H5N1 prophylactic vaccine in Beirut,
Lebanon following submission of an application. <FONT STYLE="color: black">In December 2008, we, together with our marketing partner
Benta SA., received an approval to market Generex Oral-lyn&trade; in Lebanon. The official product launch in Lebanon took place
in May 2009.</FONT> We are not currently expending any resources to further commercialization in this country.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="color: black">In May 2009, the Algerian health authorities granted us permission to import and sell Generex Oral-lyn&trade;
for the treatment of diabetes in Algeria. </FONT>To date we have not recognized any revenue from the sale of Generex Oral-lyn&trade;
in Algeria and we are not currently expending any resources to further commercialization in this country.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Marketing and Distribution</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We market our products through collaborative arrangements with
companies that have well-established pharmaceutical marketing and distribution capabilities, including expertise in the regulatory
approval processes in their respective jurisdictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have entered into licensing and distribution agreements with
a number of multinational distributors to assist us with the process of gaining regulatory approval for the registration, marketing,
distribution, and sale of Generex Oral-lyn&trade; in countries throughout the world, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Shreya Life Sciences Pvt. Ltd. for India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka, and Myanmar;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Adcock Ingram Limited and Adcock Ingram Healthcare (Pty) Ltd. for South Africa, Lesotho, Swaziland, Botswana; Namibia, Mozambique
and Zimbabwe;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>E&amp;V Alca Distribution Corp. for Albania, Montenegro, and Kosovo;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Medrey S.A.L. (formerly MedGen Corp.) and Benta S.A.L. for Lebanon;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>SciGen, Ltd. for China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Pharmaris Perus S.A.C. for Peru;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>MediPharma SA for Argentina;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>PMG S.A. for Chile;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Dong Sung Pharm. Co. Ltd. for South Korea; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Benta S.A. for Lebanon.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under these licensing and distribution agreements excluding
the one with Dong Sung Pharm Co., we will not receive an upfront license fee, but the distributor will bear any and all costs associated
with the procurement of governmental approvals for the sale of Generex Oral-Lyn&trade;, including any clinical and regulatory costs.
We possess the worldwide marketing rights to our oral insulin product. We do not currently plan to expend significant resources
on additional clinical trials or to further the commercialization of Generex Oral-lyn&trade; until after such time that we secure
additional financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Manufacturing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In December 2000, we completed a pilot manufacturing facility
for Generex Oral-lyn&trade; in Toronto, Canada in the same commercial complex in which our laboratories were located. In the first
quarter of fiscal year 2006, we initiated a scale-up commercial production run of several thousand canisters of Generex Oral-lyn&trade;
at this facility. We have sold the property which housed the manufacturing and laboratory facility in July 2012 and expect to engage
contract manufacturers in order to manufacture any product in significant quantities for any future commercial sales and clinical
trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In March 2006, we successfully completed the delivery and installation
of a turnkey Generex Oral-lyn&trade; filling operation at the facilities of PharmaBrand, in Quito, Ecuador for the purposes of
commercial supply and sales in Ecuador and other countries that can procure registrations and import licenses. We anticipate that
the capacity of this facility will be sufficient to support commercial sales in Ecuador and other countries in Latin America, it
is believed to be insufficient for worldwide production for future commercial sales and clinical trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In anticipation of undertaking late-stage clinical trials of
Generex Oral-lyn&trade; in Canada, we entered into an agreement with Cardinal Health PTS, LLC, now known as Catalent Pharma Solutions
(Catalent), in June 2006, pursuant to which Catalent manufactured clinical trial batches of Generex Oral-lyn&trade;. Pursuant to
pre-extant supply arrangements, our third-party suppliers have been manufacturing the quantities of the RapidMist&trade; brand
metered dose inhaler components (valves, canisters, actuators, and dust caps), the insulin, and the formulary excipients that will
be required for the Catalent production. In addition, our Regulatory Affairs, Quality Control and R&amp;D personnel have worked
with Catalent to prepare and validate the Catalent production processes. We are not currently manufacturing product under this
agreement and we expect that any agreements regarding the manufacturing of Generex Oral-lyn&trade; for any future trials or commercial
sales will need to be renegotiated at such time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our subsidiary Antigen leases office and laboratory space in
Worcester, Massachusetts, which is sufficient for its present needs. The laboratory has permission to store and use biohazardous
(including recombinant DNA materials) and flammable chemicals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Raw Material Supplies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The excipients used in our formulation are available from numerous
sources in sufficient quantities for clinical purposes, and we believe that they will be available in sufficient quantities for
commercial purposes when required, although we have not yet attempted to secure a guaranteed commercial supply of any such products.
Components suitable for our RapidMist&trade; brand metered dose inhaler are available from a limited number of potential suppliers,
as is the chemical propellant used in the device. The components which now comprise the device are expected to be used in the commercial
version of our insulin product in Ecuador, India, Lebanon and Algeria. We have secured supply arrangements with manufacturers for
each of the components and the propellant that we presently use in our RapidMist&trade; brand metered dose inhaler for commercial
quantities of such components. All such suppliers are prominent, reputable and reliable suppliers to the pharmaceutical industry.
Because we now have a single supplier for many of these, however, we are more vulnerable to supply interruptions than would be
the case if we had multiple suppliers for each component. We do not believe that the risk of supply for proprietary raw materials
or device components is unusual in the pharmaceutical industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Insulin is available worldwide from only a few sources. However,
alternative supplies of insulin are under development. We currently procure recombinant human insulin crystals for clinical trials
and commercial production in Ecuador from time to time from a European supplier whose production facility is GMP certified by the
FDA and European health authorities. <FONT STYLE="color: black">On December 7, 2009, we entered into a long-term agreement with
sanofi-aventis Deutschland GmbH (&ldquo;sanofi-aventis&rdquo;).&nbsp;&nbsp;Under this agreement, sanofi-aventis will manufacture
and supply recombinant human insulin to us in the territories specified in the agreement.&nbsp;&nbsp;Through this agreement, we
will procure recombinant human insulin crystals for use in the production of Generex Oral-lyn&trade;.&nbsp;&nbsp;The terms of the
supply agreement required us to make certain minimum purchases of insulin from sanofi-aventis through the period ending December
31, 2011. As we did not meet the minimum purchase requirements by December 31, 2011, sanofi-aventis may terminate the agreement.
Upon termination, we would be obligated to pay sanofi-aventis for all materials and components that it has acquired or ordered
to manufacture insulin based on our forecasts or minimum purchase commitments, all related work-in-progress (at cost) and all finished
insulin in </FONT>inventory.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Raw materials for our pre-clinical development stage immunomedicine
products include amino acids (for peptide therapeutics) and oligonucleotides (for genetic constructs). These materials are readily
available from commercial suppliers. We utilize the services of several commercial laboratories for the manufacturing of our pre-clinical
development stage immunomedicine products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Intellectual Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We hold a number of patents in the United States and foreign
countries covering our buccal and other delivery technologies. We also have developed brand names and trademarks for products in
appropriate areas. We consider the overall protection of our patent, trademark and other intellectual property rights to be of
material value and acts to protect these rights from infringement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Patents are a key determinant of market exclusivity for most
branded pharmaceutical products. Protection for individual products or technologies extends for varying periods, in accordance
with the expiration dates of patents in the various countries. The protection afforded, which may also vary from country to country,
depends upon the type of patent, its scope of coverage and the availability of meaningful legal remedies in the country.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We currently have nineteen issued U.S. patents and one pending
U.S. patent applications pertaining to various aspects of drug delivery technology, including oral administration of macromolecular
formulations (such as insulin) as well as pain relief medications such as morphine and fentanyl. We currently hold eight issued
Canadian patents and one pending Canadian patent applications also relating to various aspects of drug delivery technology. We
also hold thirty-nine issued patents and seven pending patent applications covering our drug delivery technology in jurisdictions
other than the U.S. and Canada, including Brazil, Argentina, Israel, Australia and several European countries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The expiration dates of the U.S. issued patents range from 2016
to 2022. The expiration dates of the patents issued in Canada range from 2015 to 2021. The expiration dates of the patents issued
in other jurisdictions range from 2015 to 2028.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We had an indirect interest in eighteen drug delivery patents
held by another company, Centrum Biotechnologies, Inc. The expiration dates of these patents ranged from 2014 to 2016 and as it
was unlikely that we could make commercial use of the patents prior to their expiration dates, we have let these patents lapse.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition to patents, we hold intellectual property in the
form of trademark applications or registrations for GENEREX BIOTECHNOLOGY (Design), GENEREX BIOTECHNOLOGY (Logo), GENEREX ORAL-LYN,
ORAL LYN, ORAL-LYN and RAPIDMIST in various jurisdictions in the world. Trademarks have no effect on market exclusivity for a product,
but are considered to have marketing value. Trademark protection continues in some countries as long as used; in other countries,
as long as registered. Registration is for fixed terms and can be renewed indefinitely.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: yellow"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our subsidiary Antigen Express currently holds ten issued U.S.
patents and twenty-five other foreign patents. There are also twenty pending patent applications worldwide concerning technology
for modulating the immune system via activation of antigen-specific helper T lymphocytes, including seven in the U.S. and thirteen
in other countries. Some of these patents are held under exclusive licenses from the University of Massachusetts. Dr. Robert Humphreys,
a retired officer of Antigen, is the listed inventor or co-inventor on many of these patents and patent applications, including
those licensed from the University of Massachusetts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The expiration dates of the Antigen U.S. issued patents range
from 2013 to 2028. The expiration dates of the patents issued in other jurisdictions range from 2014 to 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We possess the worldwide manufacturing and marketing rights
to our oral insulin product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our long-term success will substantially depend upon our ability
to obtain patent protection for our technology and our ability to protect our technology from infringement, misappropriation, discovery
and duplication. We cannot be sure that any of our pending patent applications will be granted, or that any patents which we own
or obtain in the future will fully protect our position. Our patent rights and the patent rights of biotechnology and pharmaceutical
companies in general, are highly uncertain and include complex legal and factual issues. We believe that our existing technology
and the patents which we hold or for which we have applied do not infringe anyone else's patent rights. We believe our patent rights
will provide meaningful protection against others duplicating our proprietary technologies. We cannot be sure of this, however,
because of the complexity of the legal and scientific issues that could arise in litigation over these issues. See the discussion
under the caption &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo; under
the heading &ldquo;Legal Proceedings&rdquo; in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We also rely on trade secrets and other unpatented proprietary
information. We seek to protect this information, in part, by confidentiality agreements with our employees, consultants, advisors
and collaborators.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Competition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We expect that products based upon our buccal delivery technology
and any other products that we may develop will compete directly with products developed by other pharmaceutical and biotechnology
companies, universities, government agencies and public and private research organizations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Products developed by our competitors may use a different active
pharmaceutical agent or treatment to treat the same medical condition or indication as our product or may provide for the delivery
of substantially the same active pharmaceutical ingredient as our products using different methods of administration. For example,
a number of pharmaceutical and biotechnology companies are engaged in various stages of research, development and testing of alternatives
to insulin therapy for the treatment of diabetes, as well as new methods of delivering insulin. These methods, including nasal,
transdermal, needle-free (high pressure) injection and pulmonary, may ultimately successfully deliver insulin to diabetic patients.
Some biotechnology companies also have developed different technologies to enhance the presentation of peptide antigens. Some of
our competitors and potential competitors have substantially greater scientific research and product development capabilities,
as well as financial, marketing and human resources, than we do.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Where the same or substantially the same active ingredient is
available using alternative delivery means or the same or substantially the same result is achievable with a different treatment
or technology, we expect that competition among products will be based, among other things, on product safety, efficacy, ease of
use, availability, price, marketing and distribution. When different active pharmaceutical ingredients are involved, these same
competitive factors will apply to both the active agent and the delivery method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We consider other drug delivery and biotechnology companies
to be direct competitors for the cooperation and support of major drug and biotechnology companies that own or market proprietary
pharmaceutical compounds and technologies, as well as for the ultimate patient market. Of primary concern to us are the competitor
companies that are known to be developing delivery systems for insulin and other pharmaceutical agents that we have identified
as product candidates and technologies to enhance the presentation of peptide antigens.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Large pharmaceutical companies, such as Merck &amp; Co., Inc.,
GlaxoSmithKline PLC, Novartis, Inc., MedImmune Inc. (a subsidiary of Astra-Zeneca, Inc.) and others, also compete in the oncology,
immunomedicine and vaccine markets. These companies have greater experience and expertise in securing government contracts and
grants to support research and development efforts, conducting testing and clinical trials, obtaining regulatory approvals to market
products, as well as manufacturing and marketing approved products. As such, they are also considered significant competitors in
these fields of pharmaceutical products and therapies. There are also many smaller companies which are pursuing similar technologies
in these fields and are considered to be competitors of Generex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following descriptions of our competitors and their products
were obtained from their filings with the Securities and Exchange Commission, information available on their web sites and industry
research reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Buccal Insulin Product</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>MannKind Corporation&rsquo;s product candidates include AFREZZA&reg;, a mealtime insulin therapy being studied for use in adult
patients with type 1 and type 2 diabetes. It is a drug-device combination product which administers insulin through inhalation
to the lungs. MannKind submitted an NDA to the FDA requesting approval to market AFRESA in May 2009. In January 2011, MannKind
announced that it had received a complete response letter from the FDA for AFREZZA&reg;. In August 2011, MannKind announced that
it has confirmed with the FDA the design of the two additional clinical studies which are required for AFREZZA&reg;.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Nektar Therapeutics and Pfizer terminated their collaborative development and licensing agreement for Exubera&reg; and Nektar&rsquo;s
next-generation inhaled insulin product in November 2007. Exubera&reg; was the first inhaled insulin formulation to receive FDA
approval. In April 2008, Nektar announced that it had ceased all negotiations with potential partners for Exubera&reg; and the
next-general inhaled insulin product as a result of new data analysis from ongoing clinical trials conducted by Pfizer which indicated
an increased risk of lung cancer in certain patients.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Novo Nordisk A/S, one of the two leading manufacturers of insulin in the world, announced in May 2008 the termination of clinical
testing of the pulmonary delivery system for inhaled insulin, the AERx&reg; insulin Diabetes Management System (AERx iDMS), initially
developed by Aradigm Corporation. The product was in Phase III clinical trials at the time of Novo Nordisk&rsquo;s announcement.
In December 2010, it was announced that Novo Nordisk had entered into an exclusive Development and License Agreement with Emisphere
for its oral insulin formulation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Alkermes, Inc. and Eli Lilly and Company entered into a licensing agreement in 2001 for the development of an AIR&reg; inhaled
insulin system based upon Alkermes&rsquo; AIR&reg; pulmonary drug delivery system for large molecule drugs to the lungs with a
dry power formulation. In March 2008, Eli Lilly announced its termination of development work relating to this product.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In May 2009, Alkermes, Amylin Pharmaceuticals, Inc. and Eli Lilly and Company submitted a NDA for exenatide once weekly, an
extended-release injectable formulation, to the FDA. The NDA was accepted for review by the FDA in July 2009.&nbsp;If approved,
exenatide once weekly would be the first once-a-week therapy for the treatment of type 2 diabetes.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>CPEX Pharmaceuticals, Inc.&rsquo;s proprietary permeation enhancer, CPE-215&reg;, provides skin, mouth, nose and eye membrane
absorption of a variety of pharmaceuticals. CPEX has applied this technology to Nasulin&trade;, through which insulin is absorbed
via nasal mucosa. In April 2010, CPEX announced that it decided not to proceed with any further development activities of Nasulin&trade;,
which was currently in Phase II clinical trials.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>There are several companies that are working on developing products which involve the oral delivery of analogs of insulin.
Oramed Pharmaceuticals is developing an orally ingestible insulin capsule which is currently in Phase II clinical trials. Biocon
Limited has developed IN-105, a tablet for the oral delivery of insulin, which is currently in phase II trials. Diabetology has
developed Capsulin IR, an insulin capsule which is currently in Phase II clinical trials. Access Pharmaceuticals has developed
Cobalamin, an oral insulin which is currently in pre-clinical trials. Dance Pharmaceuticals is developing an inhaled insulin product
based on Aerogen&rsquo;s proprietary OnQ Aerosol Generator technology.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There are also a number of companies developing alternative
means of delivering insulin in the form of oral pills, transdermal patches, and intranasal methods, which are at early stages of
development. In addition to other delivery systems for insulin, there are numerous products, such as sulfonylureas (Amaryl&reg;and
Glynase&reg;), biguanides (branded and generic metformin products), thiazolidinediones (Avandia&reg;and Actos&reg;), glucagon-like
peptide 1 (Byetta&reg;and Victoza&reg;), and dipeptidyl peptidase IV inhibitors (Januvia&reg; and Onglyza&trade;), which have been
approved for use in the treatment of Type 2 diabetics in substitution of, or in addition to, insulin therapy. These products may
also be considered to compete with insulin products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Immunomedicine Technology and Products </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">Novavax, Inc.</FONT><B> </B>is a clinical-stage
biotechnology company which is developing vaccines to address a broad range of infectious diseases, including H1N1, seasonal influenza
and respiratory syncytial virus (RSV) using proprietary virus-like particle technology. Novavax&rsquo;s season flu vaccine is in
Phase II clinical trials and its H5N1 influenza virus-like particle vaccine is in Phase 1 clinical trials.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Advaxis, Inc. uses a proprietary technique to bioengineer Listeria bacteria to create a specific antigen that can stimulate
an immune response after recognition by the recipient&rsquo;s immune system. Advaxis&rsquo; most advanced product candidate is
ADXS-HPV, which i<FONT STYLE="color: #666666">s in </FONT>Phase II trials for HPV-associated CIN (cervical intraepithelial neoplasia)
and recurrent cervical cancer.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Micromet, Inc. uses two platform technologies to treat cancers, autoimmune diseases and inflammation: (i) the creation of Single-Chain
Antibodies (SCAs) through the use of the antigen-binding region of a full-sized antibody, held together by a linker; and (ii) BiTE&reg;
technology which utilizes the body&rsquo;s CTLs to attack tumor cells. Micromet&rsquo;s <FONT STYLE="color: black">lead product
candidate blinatumomab (MT103) is currently the subject of a European pivotal trial in patients with minimal residual disease positive
acute lymphoblastic leukemia.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Sanofi Pasteur Inc., the vaccine division of sanofi-aventis and one of the largest vaccines companies in the world, has product
candidates including inoculations against 20 varieties of infectious diseases. It received FDA approval for an H5N1 avian influenza
vaccine in April 2007 and for an H1N1 vaccine in September 2009.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Dendreon Corporation&rsquo;s product portfolio includes therapeutic vaccines, monoclonal antibodies and small molecules. Its
most advanced product candidate, Provenge&reg; (sipuleucel-T), an investigational autologous (patient-specific) active cellular
immunotherapy (ACI) for the treatment of prostate cancer received FDA approval in April 2010. Dendreon is exploring the application
of additional active cellular immunotherapy product candidates and small molecules for the potential treatment of a variety of
cancers.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="color: black">Galena Biopharma&rsquo;s (formerly Rxi Pharmaceuticals Corporation) NeuVax&trade;, is currently
in Phase III clinical trials to evaluate NeuVax&trade; for the treatment of early stage, HER2-positive breast cancer. Clinical
trials are currently underway to test NeuVax&trade; as a treatment for prostate cancer, and to use NeuVax&trade; in combination
with Herceptin&reg; to target breast cancer.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Cell Genesys, Inc. was developing products for the treatment of prostate cancer using the GVAX&trade; cancer treatments, which
are composed of tumor cells that are genetically modified to secrete an immune-stimulating cytokine and are irradiated for safety.
Cell Genesys and Takeda Pharmaceutical Co. entered into an exclusive licensing agreement for GVAX in March 2008. In late 2008,
Cell Genesys announced it was terminating the Phase III trials for the GVAX&trade; prostate cancer products. In May 2010, BioSante
Pharmaceuticals, Inc. announced that development of the GVAX vaccine for the treatment of prostate cancer has been reinitiated
and is in Phase II human clinical trials. In addition to GVAX prostate product, BioSante has several other cancer vaccines which
are in Phase II clinical development including vaccines for leukemia, breast cancer and pancreatic cancer.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Pharmexa-Epimmune, Inc., the U.S. subsidiary of Pharmexa A/S, was sold to Korean company, VaxOnco, Inc., a Korean company specializing
in peptide based vaccines, in April 2009. Pharmexa-Epimmune has in its product pipeline a peptide vaccine, GV1001, which is in
Phase III clinical trials for pancreatic cancer and Phase II clinical trials for liver and non-small cell lung cancer and two vaccines
against HER/2-positive breast cancer in Phase I and Phase II clinical trials. Pharmexa-Epimmune has received significant NIH funding
for vaccines against malaria and HIV, some of which are currently in Phase I testing.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>CEL-SCI Corporation&rsquo;s main product is Multikine&reg; an immunotherapeutic agent being developed as a cancer treatment.
Multikine&reg;&rsquo;s goal is to harness the body's natural ability to fight tumors. Multikine&reg; has been cleared in the U.S.
and Canada for study in a global Phase III clinical trial in advanced primary (not yet treated) head and neck cancer patients.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Environmental Compliance</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our manufacturing, research and development activities involve
the controlled use of hazardous materials and chemicals. We believe that our procedures for handling and disposing of these materials
comply with all applicable government regulations. However, we cannot eliminate the risk of accidental contamination or injury
from these materials. If an accident occurred, we could be held liable for damages, and these damages could severely impact our
financial condition. We are also subject to many environmental, health and workplace safety laws and regulations, particularly
those governing laboratory procedures, exposure to blood-borne pathogens, and the handling of hazardous biological materials. Violations
and the cost of compliance with these laws and regulations could adversely affect us. However, we do not believe that compliance
with the United States, Canadian or other environmental laws will have a material effect on us in the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Research and Development Expenditures</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A substantial portion of our activities to date have been in
research and development. In the period from inception to April 30, 2012, our expenditures on research and development were $130,824,443.
This included $3,835,715 in the nine months ended April 30, 2012, $10,250,397 in the year ended July 31, 2011, $13,361,156 in the
year ended July 31, 2010 and $13,561,681 in the year ended July 31, 2009. Research and development activities in the first three
quarters of 2012 and in 2011 decreased from 2010, as we neared completion of the global Phase III clinical trial of our oral insulin
product. The slight decrease in our research and development activities in 2010 compared to 2009 is due primarily to the continuation
of our expenses in connection to global Phase III clinical trials of our oral insulin product compared to the previous year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Financial Information About Geographic Areas</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The regions in which we had identifiable assets and revenues
and the amounts of such identifiable assets and revenues for each of the last three fiscal years are presented in Note 19 in the
<FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Notes to Consolidated Financial Statements</I></FONT> in this prospectus.
Identifiable assets are those that can be directly associated with a geographic area.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Employees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At September 1, 2012, we had twelve full-time employees, including
our employees at Antigen. Eight of our employees are executive and administrative, three are scientific and technical personnel
who engage primarily in development activities and in preparing formulations for testing and clinical trials, and one is engaged
in corporate and product promotion. We believe our employee relations are good. None of our employees is covered by a collective
bargaining agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will continue to need qualified scientific personnel and
personnel with experience in clinical testing, government regulation and manufacturing. We may have difficulty in obtaining qualified
scientific and technical personnel as there is strong competition for such personnel from other pharmaceutical and biotechnology
companies, as well as universities and research institutions. Our business could be materially harmed if we are unable to recruit
and retain qualified scientific, administrative and executive personnel to support our expanding activities, or if one or more
members of our limited scientific and management staff were unable or unwilling to continue their association with us. We have
fixed-term agreements with only certain members of our key management and scientific staff, Mark Fletcher, President, President
and CEO, Eric von Hofe, President of Antigen, and Nikoletta Kallinteris, Senior Research Associate of Antigen.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We use non-employee consultants to assist us in formulating
research and development strategy, in preparing regulatory submissions, in developing protocols for clinical trials, and in designing,
equipping and staffing our manufacturing facilities. We also use non-employee consultants to assist us in business development.
These consultants and advisors usually have the right to terminate their relationship with us on short notice. Loss of some of
these key advisors could interrupt or delay development of one or more of our products or otherwise adversely affect our business
plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Properties.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our executive and principal administrative offices occupy approximately
2,300 square feet of office space in in downtown Toronto, Ontario, Canada which we rent at an annual rent of approximately $80,000
under a lease that runs to September 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We own facilities in Toronto that are currently leased to third
parties. These units are reflected in Assets Held for Investments on the accompanying consolidated balance sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have mortgages on our Toronto properties totaling $2,051,676
at April 30, 2012. These mortgages require the payment of interest, with minimal principal reduction, prior to their due dates.
These mortgages currently require an aggregate approximately $17,750 in monthly debt service payments. Aggregate principal maturities
for these mortgages will be $1,482,023 up to April 30, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We lease approximately 4,336 square feet of office and laboratory
space in Worcester, Massachusetts which we rent under a lease agreement which runs to June 30, 2015, that Antigen uses for its
research and development activities at an annual rent of approximately $192,000. This space is sufficient for Antigen&rsquo;s present
activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We do not expect to need manufacturing capabilities in Canada
related to our insulin product, as it is likely that we will contract out the manufacturing of product requirements for any future
clinical trials and commercial sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Legal Proceedings. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: yellow"><B><I></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Subash Chandarana et al. v. Generex Biotechnology Corporation</I>.
In February 2001, a former business associate of Pankaj Modi (&quot;Modi&quot;) (a former officer of Generex) and an entity called
Centrum Technologies Inc. (&quot;CTI&quot;) commenced an action in the Ontario Superior Court of Justice against us and Modi seeking,
among other things, damages for alleged breaches of contract and tortious acts related to a business relationship between this
former associate and Modi that ceased in July 1996. The plaintiffs&rsquo; statement of claim also seeks to enjoin the use, if any,
by us of three patents allegedly owned by CTI. The three patents are entitled Liquid Formulations for Proteinic Pharmaceuticals,
Vaccine Delivery System for Immunization, Using Biodegradable Polymer Microspheres, and Controlled Releases of Drugs or Hormones
in Biodegradable Polymer Microspheres. It is our position that the buccal drug delivery technologies which are the subject matter
of our research, development, and commercialization efforts, including Generex Oral-lyn&trade; and the RapidMist&trade; Diabetes
Management System, do not make use of, are not derivative of, do not infringe upon, and are entirely different from the intellectual
property identified in the plaintiffs&rsquo; statement of claim. On July 20, 2001, we filed a preliminary motion to dismiss the
action of CTI as a nonexistent entity or, alternatively, to stay such action on the grounds of want of authority of such entity
to commence the action. The plaintiffs brought a cross motion to amend the statement of claim to substitute Centrum Biotechnologies,
Inc. (&quot;CBI&quot;) for CTI. CBI is a corporation of which 50 percent of the shares are owned by the former business associate
and the remaining 50 percent are owned by us. Consequently, the shareholders of CBI are in a deadlock. The court granted our motion
to dismiss the action of CTI and denied the plaintiffs&rsquo; cross motion without prejudice to the former business associate to
seek leave to bring a derivative action in the name of or on behalf of CBI. The former business associate subsequently filed an
application with the Ontario Superior Court of Justice for an order granting him leave to file an action in the name of and on
behalf of CBI against Modi and us. We opposed the application. In September 2003, the Ontario Superior Court of Justice granted
the request and issued an order giving the former business associate leave to file an action in the name of and on behalf of CBI
against Modi and us. A statement of claim was served in July 2004. Since that time, the plaintiffs have not taken any steps in
furtherance of the proceeding. We are not able to predict the ultimate outcome of this legal proceeding at the present time or
to estimate an amount or range of potential loss, if any, from this legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On April 6, 2010, we commenced legal proceedings against TheStreet.com,
Inc. and Adam Feuerstein in the Supreme Court of the State of New York (New York, NY) seeking $250,000,000 in damages for business
defamation, product disparagement, and injurious falsehood. The claims arose out of articles authored by Mr. Feuerstein and published
on TheStreet.com website on March 19 and March 26, 2010. On November 17, 2011, the parties agreed to discontinue the action with
prejudice, and a Stipulation of Discontinuance was filed by the parties with the Supreme Court of the State of New York on November
21, 2011, with each party bearing its own attorney's fees and costs. Pursuant to the settlement agreement, no payments were made
to or by the respective parties in connection with this resolution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Disputes with Former Officer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In May 2011, Rose C. Perri, our former Chief Operating Officer
and Chief Financial Officer, commenced two proceedings against us. On May 11, 2011, Ms. Perri filed a notice of application in
the Ontario Superior Court of Justice, Commercial List, against Generex, two of our affiliates (1097346 Ontario, Inc. and Generex
Pharmaceuticals Inc.), three of our independent directors (John P. Barratt, Nola Masterson and Brian T. McGee), our President and
Chief Executive Officer (Mark A. Fletcher), our Chief Operating Officer (David Brusegard) and our Acting Chief Financial Officer
(Stephen Fellows). The application has since been abandoned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 20, 2011, Ms. Perri filed a statement of claim (subsequently
amended) in the Ontario Superior Court of Justice, naming the following as defendants: Generex, Mr. Barratt, Ms. Masterson, Mr.
McGee, and Mr. Fletcher. In this action, Ms. Perri has alleged that the defendants engaged in discrimination, harassment, bad faith
and infliction of mental distress in connection with the termination of her employment with Generex. Ms. Perri is seeking damages
in this action in excess of $7,000,000 for, among other things, breach of contract, breach of fiduciary duty, violations of the
Ontario Human Rights Code and aggravated and punitive damages. On September 20, 2011, the defendants filed a statement of defense
and counterclaim, also naming Time Release Corp., Khazak Group Consulting Corp., and David Khazak, C.A. as defendants by counterclaim,
and seeking damages of approximately $2.3 million in funds that the defendants allege Ms. Perri wrongly caused Generex to pay to
third parties in varying amounts over several years and an accounting of certain third-party payments, plus interests and costs.
The factual basis for the counterclaim involves payments made by Generex to third parties believed to be related to Ms. Perri.
For a discussion of certain of these related party transactions, see the disclosures under the caption &ldquo;Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&rdquo; under the heading &ldquo;Certain Related Party
Transactions&rdquo; in this prospectus. We intend to defend this action and pursue our counterclaim vigorously. We are not able
to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss,
if any, from this legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 1, 2011, Golden Bull Estates Ltd. filed a claim in the
Ontario Superior Court of Justice, naming Generex, 1097346 Ontario, Inc. and Generex Pharmaceuticals Inc. as defendants. The plaintiff,
Golden Bull Estates, is controlled by Ms. Perri. The plaintiff alleges damages in the amount of $550,000 for breach of contract
and $50,000 for punitive damages, plus interest and costs. The plaintiff&rsquo;s claims relate to an alleged contract between the
plaintiff and Generex for property management services for certain Ontario properties owned by Generex. Generex terminated the
plaintiff&rsquo;s property management services in April 2011. Following the close of pleadings, we served a motion for summary
judgment. The plaintiff responded by amending its statement of claim to include a claim to our interest in certain of our real
estate holdings. The plaintiff moved for leave to issue and register a Certificate of Pending Litigation in respect of this real
estate. The motion was not successful in respect of any current real estate holdings of Generex. We are not able to predict the
ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any, from
this legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In August 2011, the estate of Antonio Perri, the late father
of Ms. Perri, commenced an action against Generex Pharmaceuticals, Inc., the law firm of Brans, Lehun, Baldwin LLP and William
Lehun in the Ontario Superior Court of Justice, claiming that the estate is entitled to the proceeds of sale (approximately $1,730,000)
received by Generex on its sale of two properties to Golden Bull Estates, a company controlled by Ms. Perri. The suit alleges that
no consideration was received when Generex purchased the two properties from Antonio Perri in 1998. We have responded to this statement
of claim and intend to defend this action vigorously. We are not able to predict the ultimate outcome of this legal proceeding
at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In December 2011, a vendor commenced an action against Generex
Biotechnology Corporation and its subsidiary, Generex Pharmaceuticals, Inc., in the Ontario Superior Court of Justice claiming
damages for unpaid invoices including interest in the amount of $429,000, in addition to costs and further interest. We have responded
to this statement of claim and intend to defend this action vigorously. We have also asserted a counterclaim in the proceeding
for $200,000 arising from the vendor&rsquo;s breach of contract and detinue, together with interest and costs. A hearing for the
vendor&rsquo;s motion for summary judgment is scheduled for November 15, 2012. We will be responding to the motion. We are not
able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential
loss, if any, from this legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are involved in certain other legal proceedings in addition
to those specifically described herein. Subject to the uncertainty inherent in all litigation, we do not believe at the present
time that the resolution of any of these legal proceedings is likely to have a material adverse effect on our financial position,
operations or cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">With respect to all litigation
matters, as additional information concerning the estimates used by us becomes known, we reassess each matter&rsquo;s position
both with respect to accrued liabilities and other potential exposures.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0"></P>
<P STYLE="margin: 0"></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SELECTED FINANCIAL DATA</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following selected financial data are derived from and should
be read in conjunction with our consolidated financial statements and related notes, which appear elsewhere in this prospectus.
Our consolidated financial statements for the years ended July 31, 2011, 2010, 2009 and 2008 were audited by MSCM LLP, and our
consolidated financial statements for the year ended July 31, 2007 were audited by Danziger Hochman Partners LLP (formerly known
as Danziger &amp; Hochman, Chartered Accountants which merged with MSCM LLP effective as of August 1, 2008).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="18" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fiscal&nbsp;year&nbsp;ended&nbsp;July&nbsp;31,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Nine&nbsp;months&nbsp;ended&nbsp;April&nbsp;30,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">In&nbsp;thousands&nbsp;(except&nbsp;per&nbsp;share&nbsp;data)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2010</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2009</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2008</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2007</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Unaudited</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: underline; text-align: left">Operating Results:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 16%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">292</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,173</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,118</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">125</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">180</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">22</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">269</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21,676</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,280</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(45,812</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(36,229</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(23,505</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,914</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16,231</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Loss Available to Common Stockholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,442</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,280</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(45,812</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(36,229</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(23,505</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,291</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16,231</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Cash Dividends per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-decoration: underline">Loss per Common Share:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Basic and Diluted Net Loss Per Common Share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.08</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.10</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.32</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.33</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.22</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.02</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.06</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="18" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of&nbsp; July 31,</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center"><B>As of <BR> April 30,
    </B></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">In thousands (except per share data)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2011</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2010</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2009</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2008</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2007</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><U>Financial Positions:</U></TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Unaudited</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 28%; text-align: left">Total Assets</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,006</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">24,575</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">24,814</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">38,148</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">46,404</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,268</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Long-Term Debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,870</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,824</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,854</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,355</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,059</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">570</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Convertible Debentures</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,719</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Preferred Stock*</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Stockholder's (Deficiency)/Equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(8,442</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,971</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">14,224</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">22,647</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">36,071</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(7,651</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* At July 31, 2011, there were 1,287 shares of Series A convertible
preferred stock outstanding which have a face value of $1,000 per share ($1,287,000 in aggregate), but which have an accounting
value of zero. See Note 12 to the <I>Notes to Consolidated Financial Statements</I> included elsewhere in this registration statement.
There was no preferred stock outstanding in any of the fiscal years 2007 through 2010, inclusive. As of April 30, 2012, all outstanding
Series A convertible preferred stock outstanding had been converted to common stock. At April 30, 2012, there were 2,000 shares
of Series B convertible preferred stock outstanding ,which have a face value of $1,000 per share ($2,000,000 in aggregate), but
which have an accounting value of zero.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>The following discussion and analysis
of our financial condition and results of operations should be read in conjunction with the financial statements and related notes
appearing elsewhere in this prospectus. The discussion in this section regarding our business and operations include &quot;forward-looking
statements&rsquo;&rsquo; within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements consist of
any statement other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as
&ldquo;may&rdquo;, &ldquo;expect&rdquo;, &ldquo;anticipate&rdquo;, &ldquo;estimate&rdquo;, or &ldquo;continue&rdquo;,&nbsp;or the
negative thereof or other variations thereof or comparable terminology. You are cautioned that all forward looking statements are
speculative, and there are certain risks and uncertainties that could cause actual events or results to differ from those referred
to in such forward-looking statements. Actual results may differ materially from those anticipated in these forward-looking statements
as a result of various factors, including those set forth in the &quot;&quot;Risk Factors&rsquo;&rsquo; section and elsewhere in
this prospectus. We assume no obligation to update any such forward-looking statements. The following should be read in conjunction
with the audited financial statements and the notes thereto included elsewhere herein. Certain numbers in this section have been
rounded for ease of analysis.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following discussion and analysis by management provides
information with respect to our financial condition and results of operations for the fiscal years ended July 31, 2011, 2010 and
2009 and the nine months ended April 30, 2012. This discussion should be read in conjunction with the information in the consolidated
financial statements and the notes pertaining thereto and l under the caption &ldquo;Risk Factors&rdquo; included elsewhere in
this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Overview of Business</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are engaged primarily in the research and development of
drug delivery systems and technologies. Our primary focus at the present time is our proprietary technology for the administration
of formulations of large molecule drugs to the oral (buccal) cavity using a hand-held aerosol applicator. Through our wholly-owned
subsidiary, Antigen, we have expanded our focus to include immunomedicines incorporating proprietary vaccine formulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that our buccal delivery technology is a platform
technology that has application to many large molecule drugs and provides a convenient, non-invasive, accurate and cost-effective
way to administer such drugs. We have identified several large molecule drugs as possible candidates for development, including
estrogen, heparin, monoclonal antibodies, human growth hormone and fertility hormones, but to date have focused our development
efforts primarily on one pharmaceutical product, Generex Oral-lyn&trade;, an insulin formulation administered as a fine spray into
the oral cavity using our proprietary hand-held aerosol spray applicator known as RapidMist&trade;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our subsidiary, Antigen Express, concentrates on developing
proprietary vaccine formulations that work by stimulating the immune system to either attack offending agents (i.e., cancer cells,
bacteria, and viruses) or to stop attacking benign elements (i.e. self proteins and allergens). Our immunomedicine products are
based on two platform technologies and are in the early stages of development. We continue clinical development of Antigen&rsquo;s
synthetic peptide vaccines designed to stimulate a potent and specific immune response against tumors expressing the HER-2/neu
oncogene for patients with HER-2/neu positive breast cancer in a Phase II clinical trial and patients with prostate cancer and
against avian influenza in two Phase I clinical trials. We recently initiated an additional Phase I clinical trial in patients
with either breast or ovarian cancer.&nbsp;&nbsp;The synthetic vaccine technology has certain advantages for pandemic or potentially
pandemic viruses, such as the H5N1 avian and H1N1 swine flu.&nbsp;&nbsp;In addition to developing vaccines for pandemic influenza
viruses, we have vaccine development efforts underway for seasonal influenza virus, HIV, HPV, melanoma, ovarian cancer, allergy
and Type I diabetes mellitus. We have established collaborations with clinical investigators at academic centers to advance these
technologies.<FONT STYLE="color: black"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To date, we have received regulatory approval in Ecuador, India
(subject to further study), Lebanon and Algeria for the commercial marketing and sale of Generex Oral-lyn&trade;. We have previously
submitted regulatory dossiers for Generex Oral-lyn&trade; in a number of other countries, including Bangladesh, Kenya, Jordan and
Armenia. While we believe these countries will ultimately approve our product for commercial sale, we do not anticipate recognizing
revenues in any of these jurisdictions in the next twelve months. No dossier related activities or product shipments have taken
place during 2011, nor are any expected to these countries during the remainder of 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In March 2008, we initiated Phase III clinical trials for this
product in the U.S. with the first patient screening for such trials at a clinical study site in Texas in April 2008. Approximately
450 patients have been enrolled to date at approximately 70 clinical sites around the world, including sites in the United States,
Canada, Bulgaria, Poland, Romania, Russia, Ukraine and Ecuador. The final subjects completed the trial in August 2011. After appropriate
validation, the data from approximately 450 patients was tabulated, reviewed and analyzed. Those results from the Phase III trial
along with a comprehensive review and supplemental analyses of approximately 40 prior Oral-lyn clinical studies were compiled and
submitted to the FDA in late December 2011 in a comprehensive package including a composite metanalysis of all safety data. Following
notification of the completion of their review, we will schedule a meeting with the FDA to arrive at a consensus for the pathway
for regulatory approval, including any additional clinical or pharmacological studies that might be required to support regulatory
approval or enhance marketing success.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a development stage company. From inception through April
30, 2012, we have received only limited revenues from operations. In the nine months ended April 30, 2012, we generated $21,901
in revenue and in the fiscal years ended July 31, 2011, 2010 and 2009, we generated $291,628, $1,172,611 and $1,118,509 in revenue,
respectively. The revenue in fiscal 2009 included $500,000 relating to an upfront license fee for the signing of a license and
distribution agreement for Generex Oral-lyn&trade;, while the remainder of the revenue in each of the fiscal periods pertained
primarily to the sale of our consumer/over-the-counter products. These numbers do not reflect deferred sales to customers during
the respective periods with the right of return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of April 30, 2012, our current cash position is not sufficient
to meet our working capital needs for the next twelve months. To continue operations, we will require additional funds to support
our working capital requirements and any development activities, or will need to suspend operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We operate in only one segment: the research and development
of drug delivery systems and technologies for metabolic and immunological diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Accounting for Research and Development Projects</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our major research and development projects are the refinement
of our platform buccal delivery technology, our buccal insulin project (Generex Oral-lyn&trade;) and Antigen&rsquo;s peptide immunotherapeutic
vaccines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the nine months ended April 30, 2012, we expended resources
on the clinical testing of our buccal insulin product, Generex Oral-lyn&trade;. The completion of late-stage trials in Canada and
eventually the United States may require significantly greater funds than we currently have on hand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the nine months ended April 30, 2012, we expended resources
on research and development relating to Antigen&rsquo;s peptide immunotherapeutic vaccines and related technologies. One Antigen
vaccine is currently in Phase II clinical trials in the United States involving patients with HER-2/neu positive breast cancer,
and we have completed a Phase I clinical trial for an Antigen vaccine for H5N1 avian influenza which was conducted at the Lebanese-Canadian
Hospital in Beirut. Antigen&rsquo;s prostate cancer vaccine based on AE37 has been tested in a completed (August 2009) Phase I
clinical trial in Greece.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Because of various uncertainties, we cannot predict the timing
of completion and commercialization of our buccal insulin or Antigen&rsquo;s peptide immunotherapeutic vaccines or related technologies.
These uncertainties include the success of current studies, our ability to obtain the required financing and the time required
to obtain regulatory approval even if our research and development efforts are completed and successful, our ability to enter into
collaborative marketing and distribution agreements with third-parties, and the success of such marketing and distribution arrangements.
For the same reasons, we cannot predict when any products may begin to produce net cash inflows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Most of our buccal delivery research and development activities
to date have involved developing our platform technology for use with insulin. As a result, we have not made significant distinctions
in the accounting for research and development expenses among products, as a significant portion of all research has involved improvements
to the platform technology in connection with insulin, which may benefit all of our potential buccal products. During the nine
months ended April 30, 2012, approximately 63% of our $3,835,715 in research expenses was attributable to insulin and platform
technology development, and we did not have any research expenses related to other buccal projects. During the fiscal year ended
July 31, 2011, approximately 75% or $7,669,139 of our $10,250,397 in research expenses was attributable to insulin and platform
technology development, and we did not have any research expenses related to other buccal projects. During the fiscal year ended
July 31, 2010, approximately 86% or $11,516,050 of our $13,361,156 in research expenses was attributable to insulin and platform
technology development, and we did not have any research expenses related to other buccal projects. During the fiscal year ended
July 31, 2009, approximately 84% or $11,424,702 of our $13,561,681 in research expenses was attributable to insulin and platform
technology development, and we did not have any research expenses related to other buccal projects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the nine months ended April 30, 2012, approximately 37%
of our $3,835,715 in research expenses was attributable to Antigen's immunomedicine products. Approximately 25% or $2,581,258 of
our research and development expenses for the fiscal year ended July 31, 2011 was related to Antigen's immunomedicine products,
compared to approximately 14% or $1,845,106 of our research and development expenses for the fiscal year ended July 31, 2010 and
approximately 16% or $2,136,979 of our research and development expenses for the fiscal year ended July 31, 2009. Because these
products are in initial phases of clinical trials or early, pre-clinical stage of development (with the exception of the Phase
II clinical trials of Antigen HER-2/neu positive breast cancer vaccine that are underway), all of the expenses were accounted for
as basic research and no distinctions were made as to particular products. Due to the early stage of development, we cannot predict
the timing of completion of any products arising from this technology, or when products from this technology might begin producing
revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Critical Accounting Policies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our discussion and analysis of our financial condition and results
of operations is based on our consolidated financial statements which have been prepared in conformity with accounting principles
generally accepted in the United States of America. It requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We consider certain accounting policies related to impairment
of long-lived assets, intangible assets and accrued liabilities to be critical to our business operations and the understanding
of our results of operations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Going Concern.</U>&nbsp;&nbsp;As shown in the accompanying
consolidated financial statements, we have not been profitable and have reported recurring losses from operations.&nbsp;&nbsp;These
factors raise substantial doubt about our ability to continue to operate in the normal course of business.&nbsp;&nbsp;The accompanying
consolidated financial statements do not include any adjustments that might be necessary should we be unable to continue as a going
concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Revenue Recognition</U>. Net sales of our over-the-counter
consumer products are generally recognized in the period in which the products are delivered. Delivery of the products generally
completes the criteria for revenue recognition for us. In the event where the customers have the right of return, sales are deferred
until the right of return lapses, the product is sold to a third party or a provision for returns can be reasonably estimated based
on historical experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Inventory.</U> Inventories are stated at the lower of cost
or market with cost determined using the first-in first-out method. Management considers such factors as the amount of inventory
on hand and in the distribution channel, estimated time to sell such inventory, inventories shelf life and current market conditions
when determining whether the lower cost or market is used. As appropriate, a provision is recorded to reduce inventories to their
net realizable value.&nbsp;&nbsp;Inventory also includes the cost of products sold to the customers with the rights of return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Impairment of Long-Lived Assets</U>. Management reviews for
impairment whenever events or changes in circumstances indicate that the carrying amount of property and equipment may not be recoverable
under the provisions of accounting for the impairment of long-lived assets. If it is determined that an impairment loss has occurred
based upon expected future cash flows, the loss is recognized in the Consolidated Statement of Operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Intangible Assets</U>. We have intangible assets related
to patents. The determination of the related estimated useful lives and whether or not these assets are impaired involves significant
judgments. In assessing the recoverability of these intangible assets, we use an estimate of undiscounted operating income and
related cash flows over the remaining useful life, market conditions and other factors to determine the recoverability of the asset.
If these estimates or their related assumptions change in the future, we may be required to record impairment charges against these
assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Estimating accrued liabilities, specifically litigation accruals</U>.
Management's current estimated range of liabilities related to pending litigation is based on management's best estimate of future
costs. While the final resolution of the litigation could result in amounts different than current accruals, and therefore have
an impact on our consolidated financial results in a future reporting period, management believes the ultimate outcome will not
have a significant effect on our consolidated results of operations, financial position or cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Share-based compensation.</U> Management determines value
of stock-based compensation to employees in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification
(ASC) 718, Compensation &ndash; Stock Compensation. Management determines value of stock-based compensation to non-employees and
consultants in accordance with and ASC 505, Equity-Based Payments to Non-Employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Derivative warrant liability</U>.&nbsp;&nbsp;FASB ASC 815,
Derivatives and Hedging, requires all derivatives to be recorded on the consolidated balance sheet at fair value for fiscal years
beginning after December 15, 2008.&nbsp;&nbsp;As a result, certain derivative warrant liabilities (namely those with a price protection
feature) are now separately valued as of August 1, 2009 and accounted for on our balance sheet, with any changes in fair value
recorded in earnings.&nbsp;&nbsp;On our consolidated balance sheets as of April 30, 2012, July 31, 2011 and July 31, 2010, we used
the binomial lattice model to estimate the fair value of these warrants. Key assumptions of the binomial lattice option-pricing
model include the market price of our stock, the exercise price of the warrants, applicable volatility rates, risk-free interest
rates, expected dividends and the instrument&rsquo;s remaining term.&nbsp;&nbsp;These assumptions require significant management
judgment.&nbsp;&nbsp;In addition, changes in any of these variables during a period can result in material changes in the fair
value (and resultant gains or losses) of this derivative instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Results of Operations </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Nine Months Ended April 30, 2012 Compared to Nine Months
Ended April 30, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We had a net loss for the three quarters ended April 30, 2012
of $7,914,440 versus a net loss of $16,231,126 in the corresponding three quarters of the prior fiscal year. The $8.3 million improvement
in net loss in this fiscal year versus the corresponding period of the prior fiscal year is primarily due to an $11.2 million reduction
in operating expenses in all major categories, offset by a $1.6 million loss due to the change in fair value of the derivative
liabilities in the current fiscal year versus a gain of $2.0 million in the prior fiscal year.&nbsp; Our operating loss for the
three quarters ended April 30, 2012 decreased to $7,722,279 compared to $18,803,337 in the comparative three quarters of 2011.&nbsp;&nbsp;The
decrease in operating loss resulted from a decrease in selling expense (to $167,316 from 806,798), a decrease in research and development
expenses (to $3,835,715 from 7,859,382), and a decrease in general and administrative expenses (to $3,732,027 from $10,262,883).
Our revenues in the three quarters ended April 30, 2012 decreased to $21,901 from $269,086 for the three quarters ended April 30,
2011 reflecting lower sales of our over-the-counter products due to a decision not to focus resources on the sale of these products
going forward.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The decrease in research and development expenses in the current
fiscal year period versus the comparative period in the previous fiscal year, is primarily due to the field portion of the global
Phase III clinical trials of our oral insulin product and platform technology being completed in August 2011, resulting in significantly
lower costs on an ongoing basis related to this trial. The company&rsquo;s efforts to significantly reduce expenses in all categories
also contributed to the decrease in this category. The decrease in general and administrative expenses is primarily related to
a decrease in professional services expenses including legal, accounting, consulting and financial services of over $4.2 million
in the three quarters ended April 30, 2012, as compared to the previous year period ended April 30, 2011, as well as reductions
of expenses in most other categories due to management&rsquo;s efforts to reduce expenses and conserve cash. The decrease in selling
expenses for the quarter ended April 30, 2012 versus the prior year comparative quarter is associated with decreased advertising
and promotion relating to our over-the-counter products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our interest expense in the first three quarters of fiscal 2012
increased to $518,506, compared to interest expense of $153,385 in the first three quarters of fiscal 2011, due to the amortization
of fees and costs associated with the January and February 2012 property financings, as well as penalties incurred upon the early
discharge of mortgages on the properties held for investment which were sold in March and April 2012. Our interest income decreased
to $1,215 in the first three quarters of fiscal 2012, compared to $5,985 in the comparable period for last fiscal year, due to
lower average cash balances.&nbsp;&nbsp;We recognized higher income from assets held for investment (net of expense) of $1,928,850
in the first three quarters of fiscal 2012 compared to $236,732 in the same quarter of the previous fiscal year due primarily to
accounting gains related to the sale of the properties held for investment in August 2011 and March and April 2012 of approximately
$1.8 million, while rental income decreased slightly from the comparative prior fiscal year period. Change in fair value of derivative
liabilities caused a loss of $1,603,720 in the first three quarters of fiscal 2012 versus a gain of $1,993,920 in the comparative
prior fiscal year period. The change in fair value of the warrants carried as a derivative liability contributed a loss of $1,276,950
in this category in the current year, compared to a gain of $1,993,920 in the comparable period last year, while the change in
fair value of the additional investment rights contributed a loss in fiscal 2012 only, of $326,770.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Year Ended July 31, 2011 Compared to Year Ended July 31,
2010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our net loss available to shareholders for the fiscal year ended
July 31, 2011 (fiscal 2011) was $22,442,284 versus $25,279,940 in the fiscal year ended July 31, 2010 (fiscal 2010). The decrease
in net loss in fiscal 2011 versus fiscal 2010 is primarily due to the decrease in operating expenses by over $5 million in fiscal
2011, offset by a smaller gain due to the revaluation of the derivative warrants in fiscal 2011 of $2,220,916 versus a gain of
$4,125,590 in fiscal 2010. Our operating loss for fiscal 2011 decreased to $24,533,082 compared to $29,429,817 in fiscal 2010.
The decrease resulted primarily from a decrease in research and development expenses to $10,250,397 from $13,361,156, a decrease
in selling expense to $1,025,774 from $3,709,767 offset by a slight increase in general and administrative expenses to $13,392,920
from $12,719,239. Revenue decreased to $291,628 from $1,172,611, while gross profits decreased to $136,009 from $360,345. The decrease
in revenue and gross profit is attributable to lower sales of our consumer/<FONT STYLE="color: black">over-the-counter</FONT> products
in North America, as well as the Middle East North African region.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The increase in general and administrative expenses is primarily
related an increase in professional expenses, including the issuance of stock in exchange for financial and consulting services
which amounted to $1,856,505 in fiscal 2011 versus $961,862 in fiscal 2010.&nbsp;&nbsp;The decrease in selling expenses for fiscal
2011 versus fiscal 2010 is associated with a reduction in advertising and promotion related to our consumer/over-the-counter products,
as well as a reduction of costs associated with our MENA sales office in Dubai. Research and development expenses decreased by
over $3 million in fiscal 2011 from fiscal 2010, as expenditures relating to the Phase III trials for our <FONT STYLE="color: black">Generex
Oral-lyn&trade; product decreased significantly in fiscal 2011 versus fiscal 2010, which was partially offset by increases in the
cost of Phase II trials for Antigen&rsquo;s immunomedicine products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our interest expense in fiscal 2011 decreased slightly to $208,906,
compared to interest expense of $210,083 in fiscal 2010.&nbsp; Our interest income decreased to $6,455 in fiscal 2011from $27,045
in fiscal 2010 primarily due to lower average cash balances. We received higher income from rental operations (net of expense)
of $349,458 in fiscal 2011 compared to $206,575 in fiscal 2010 due to higher tenancies in fiscal 2011, in addition to the positive
impacts of a stronger Canadian dollar.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our net loss available to shareholders was increased by $766,417
in fiscal 2011 relating to a preferred stock dividend as a result of the accounting treatment of our convertible preferred stock
financing in July 2011. This amount represents a deemed dividend to the investors as a result of this financing, as further described
in Note 12 to the <I>Notes to Consolidated Financial Statements</I> included elsewhere in this registration statement.&nbsp; There
was no preferred stock dividend in fiscal 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Year Ended July 31, 2010 Compared to Year Ended July 31,
2009</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our net loss for the fiscal year ended July 31, 2010 (fiscal
2010) was $25,279,940 versus $45,812,228 in the fiscal year ended July 31, 2009 (fiscal 2009). The decrease in net loss in fiscal
2010 versus fiscal 2009 is primarily due to the decrease in interest expense to $210,083 from $20,114,595. The interest expense
in fiscal 2009 consisted primarily of the non-cash interest expense related to the amortization of the discount on the secured
convertible notes issued in March 2008 of $15,931,481. The decrease in fiscal 2010 interest expense was offset by an increase in
operating expenses of $2,943,225. In addition, there was a non-cash gain of $4,125,590 in fiscal 2010 relating to the fair valuation
of the derivative warrant liability as of July 31, 2010. Our operating loss for fiscal 2010 increased to $29,429,817 compared to
$26,256,160 in fiscal 2009. The increase resulted primarily from an increase in selling expense to $3,709,767 from $2,120,903,
an increase in general and administrative expenses to $12,719,239 from $11,164,352, offset by a slight reduction in research and
development expenses to $13,361,156 from $13,561,861. Revenue increased marginally to $1,172,611 from $1,118,509, while gross profits
decreased to $360,345 from $590,776. The decrease in gross profit is attributable to a non-refundable license fee relating to the
signing of a licensing and distribution agreement in Korea for Generex Oral-lyn&trade; being included in fiscal 2009 revenues,
while in fiscal 2010 revenue consisted primarily of sales of our consumer/over-the-counter consumer products in North America,
as well as the Middle East North African region.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The increase in general and administrative expenses is primarily
related to the non-cash, one time stock option modification charge of $875,773 in fiscal 2010, charges of $767,373 related to the
executive options granted in fiscal 2010, as well as an increase in professional expenses, including the issuance of warrants in
exchange for financial services resulting in a non-cash expense of $591,000 versus fiscal 2009.&nbsp;&nbsp;The increase in selling
expenses for fiscal 2010 versus fiscal 2009 is associated with increased advertising and promotion of our consumer/over-the-counter
products, as well as the costs associated with our MENA sales office in Dubai. Research and development expenses remained fairly
static from fiscal 2010 and fiscal 2009, as expenditures relating to the Phase III trials for our <FONT STYLE="color: black">Generex
Oral-lyn&trade; product, as well as Antigen&rsquo;s early stage trials for its immunomedicine products, remained at roughly the
same levels as the prior year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our interest income decreased to $27,045 in fiscal 2010 compared
to $237,977 in fiscal 2009 primarily due to lower market interest rates. We received lower income from rental operations (net of
expense) of $206,575 in fiscal 2010 compared to $320,547 in fiscal 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Financial Condition, Liquidity and Resources</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Sources of Liquidity</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To date we have financed our development stage activities primarily
through private placements of our common stock and securities convertible into our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of April 30, 2012, our current cash position is not sufficient
to meet our working capital needs for the next twelve months. Therefore, we will require additional funds to support our working
capital requirements and any development or other activities, or will need to curtail our clinical trials and other planned activities
or suspend operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">While we have financed our development stage activities to
date primarily through private placements of our common stock and securities convertible into our common stock and raised approximately
$6.5 million during fiscal 2011 and approximately $4.0 million during fiscal 2012, our cash balances have been extremely low thus
far in fiscal 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March 30, 2011, our realigned management team announced
its strategic development plan for Generex&rsquo;s future growth. The plan included the spin-out of Antigen Express, a reverse
stock split for Generex and a rights offering to Generex stockholders. As proposed, we would spin out Antigen Express as a separate
DTC-eligible company, register its shares with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;), and seek to list
its shares on a national securities exchange. Management believes that the spin-out would increase value for stockholders and
provide Antigen Express with ready access to capital markets to finance its on-going clinical and regulatory initiatives. Management
further believes that the spin-out would benefit Generex, by allowing Generex to hold a controlling interest in a publicly-traded
company while continuing to focus on maximizing opportunities for its buccal drug delivery platform. The spin-out would be accomplished
by the issuance of one or more dividends of Antigen Express stock to Generex stockholders. No determination has been made as to
the timing of the proposed spin-out.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>This prospectus does not constitute an offer of any securities
for sale or a solicitation of an offer to buy any securities related to these planned transactions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Although stockholders approved a reverse stock split proposal
at the June 8, 2011 annual meeting of stockholders, our Board of Directors will only seek to implement a reverse stock split in
conjunction with an effort to list our common stock on a national stock exchange. The terms of the securities purchase agreements
that we entered into on January 31, 2012 and August 8, 2012 also prohibit us from undertaking a reverse or forward stock split
or reclassification of our common stock except for a reverse stock split made in conjunction with a listing of the common stock
on a national securities exchange. As there are significant conditions, in addition to the minimum share price, which must be met
before we can be considered for listing, management does not anticipate that the Board of Directors will move forward with a reverse
stock split in the near future. Management&rsquo;s contemplated rights offering of common stock and warrants to our stockholders
is contingent upon the occurrence of the reverse stock split and listing of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Management may seek to meet all or some of our operating cash
flow requirements through financing activities, such as private placement of our common stock, preferred stock offerings and offerings
of debt and convertible debt instruments as well as through merger or acquisition opportunities.&nbsp;The securities purchase agreements
that we entered into on January 31, 2012 and August 8, 2012 with certain investors prohibits us from (i) issuing additional equity
securities until 60 days after the effective date of a registration statement covering the resale of the common stock issuable
upon exercise of the warrants and conversion of the preferred stock sold in that transaction and (ii) issuing additional debt or
equity securities with variable a conversion or exercise price until February 1, 2013 and August 10, 2013, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Through the shelf registration statement (File No. 333-164591)
that we filed on January 29, 2010 and which was declared effective on February 9, 2010, we raised an aggregate of $4,056,000 in
gross proceeds between January and April 2011 and raised an additional $2,575,000 in gross proceeds in July 2011 pursuant to a
convertible preferred stock purchase agreement with takedowns from the shelf registration statement as described below. Upon the
filing of our Annual Report on Form 10-K on October 14, 2011, we were no longer eligible to use the shelf registration statement
as the aggregate market value of our outstanding voting and non-voting common equity held by non-affiliates is less than $75 million.
As we are required under the registration rights agreement that we entered into on August 8, 2012 with certain investors to register
shares of our common stock issuable upon conversion or exercise of the securities purchased by the investors, we are filing this
registration statement on Form S-1 because we are not eligible to use Form S-3. We will incur additional legal and accounting fees
in connection with the preparation of this Form S-1 registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, management is actively pursuing financial and strategic
alternatives, including strategic investments and divestitures, industry collaboration activities, and potential strategic partners.
Management has sold, and is also seeking further sales of, non-essential real estate assets which are classified as Assets Held
for Investment to augment its cash position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that the Phase III clinical trial for Oral-lyn&trade;
in the United States and Canada represents a significant milestone event. We believe that the successful commercial launch of Oral-lyn&trade;
in countries where we have approval would enhance our ability to access additional sources of funding.&nbsp; We will continue to
require substantial funds to continue research and development, including preclinical studies and clinical trials of our product
candidates, further clinical trials for Oral-lyn&trade; and to commence sales and marketing efforts if the FDA or other regulatory
approvals are obtained.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unforeseen problems with the conduct or results of Phase III
clinical trials for Oral-lyn&trade; or further negative developments in general economic conditions could interfere with our ability
to raise additional capital as needed, or materially adversely affect the terms upon which such capital is available.&nbsp;&nbsp;We
cannot provide any assurance that we will obtain the required funding. Our inability to obtain required funding in the near future
or our inability to obtain funding on favorable terms will have a material adverse effect on our operations and our strategic development
plan for future growth. If we cannot successfully raise additional capital and implement our strategic development plan, our liquidity,
financial condition and business prospects will be materially and adversely affected and we may have to cease operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Equity Financings</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Following is a summary of the equity financing activities that
we completed in fiscal 2011, in February 2012 and in August 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Financing &ndash; January to April 2011</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On January 24, 2011, we and certain institutional investors
entered into a securities purchase agreement relating to the offering and sale of up to $6 million of shares of our common stock
and warrants to purchase shares of our common stock. The initial closing occurred on January 25, 2011, at which time the investors
purchased an aggregate of 12,000,000 shares of common stock together with warrants to purchase an aggregate of 12,000,000 shares
of common stock for a total purchase price of $3,000,000. The five-year warrants were immediately exercisable and have an exercise
price of $0.25 per share. The net proceeds to us from this offering, after deducting finders&rsquo; fees and our offering expenses,
were approximately $2,925,000.<FONT STYLE="color: black"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the securities purchase agreement, the investors also
had the option to purchase up to an additional $3,000,000 of shares of our common stock and warrants to purchase shares of common
stock during the 60 days following the initial closing. On March 25, 2011, we agreed to extend the option period through April
25, 2011 and entered into an amendment to the securities purchase agreement with the investors. On April 13, 2011, we agreed to
further extend the option period through June 3, 2011 and entered into the second amendment to the securities purchase agreement
with the investors. During the period from March 25 to April 8, 2011, the investors purchased an additional 4,056,000 shares of
our common stock together with warrants to purchase 4,056,000 shares of our common stock pursuant to this option. The purchase
price per share was $0.25, and the exercise of price of such additional warrants will be $0.25 per share. We received aggregate
gross proceeds of $1,014,000 for the purchases from March 25 to April 8, 2011. As of June 2, 2011, an additional $1,986,000 of
shares of our common stock and warrants to purchase shares of our common stock remained available for purchase by the investors
under the second amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The exercise price of the warrants issued to the investors in
the initial closing and pursuant to the option is subject to adjustment in the case of stock splits, stock dividends, combinations
of shares and similar recapitalization transactions. The exercise price of the warrants is also subject to an adjustment upon the
occurrence of certain events, including the issuance by us of securities at a price per share less than the exercise price then
in effect. If we issue shares of common stock or options exercisable for or securities convertible into common stock at an effective
price per share of common stock less than the exercise price then in effect, the exercise price will be reduced to the effective
price of the new issuance. Certain issuances of common stock, warrants or options are permitted without triggering the anti-dilution
provisions. These permitted issuances are described in Note 14 to the <I>Notes to Consolidated Financial Statements </I>included
elsewhere in this prospectus. In addition, with any reduction to the exercise price, the number of shares of common stock that
may be purchased upon exercise of each warrant will be increased, so that after such adjustment the aggregate warrant exercise
price payable for the adjusted number of shares issuable upon exercise will be the same as the aggregate warrant exercise price
in effect immediately prior to such adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been
reclassified on Generex&rsquo;s balance sheet as a liability under the caption &ldquo;Derivative Warrant Liability&rdquo; with
any changes in fair value at each reporting period recorded in earnings in accordance with ASC 815, as described in Note 13 to
the <I>Notes to Consolidated Financial Statements</I> included elsewhere in this registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, with very limited exceptions, the investors will
have a pro rata right of first refusal in respect of participation in any private debt or equity financings undertaken by us during
the 12 months following the initial closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In consideration for introducing us to the investors that entered
into the January 24, 2011 securities purchase agreement, we paid Seahawk Capital Partners, Inc., a finders&rsquo; fee equal to
8% of the gross proceeds from the initial closing, consisting of 2% in cash ($60,000) and 6% in shares of common stock based on
a per share price of $0.25 (720,000 shares).&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The offering and sale, including the issuance of shares to Seahawk,
was made pursuant to our shelf registration statement on Form S-3 (File No. 333-164591).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Financing&ndash; July 2011</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Series A 9% Convertible Preferred Stock and Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On July 8, 2011, we entered into a securities purchase agreement
with certain investors, pursuant to which we agreed to sell an aggregate of 2,575 shares of our non-voting Series A 9% Convertible
Preferred Stock and warrants to purchase up to an aggregate of 100% of the shares of our common stock issuable upon conversion
of the convertible preferred stock at the initial closing. The convertible preferred stock and warrants were sold in units, with
each unit consisting of one share of convertible preferred stock and a warrant to purchase 100% of the shares of our common stock
issuable upon conversion of such share of convertible preferred stock. Each unit was sold at a negotiated price of $1,000, for
an aggregate purchase price of $2,575,000 at the initial closing. An aggregate of 34,333,334 shares of our common stock were issuable
upon conversion of, or exercise of, the convertible preferred stock and warrants issued at the initial closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to certain ownership limitations, the convertible preferred
stock is convertible at the option of the holder at any time into shares of the our common stock at an effective conversion price
of $0.08 per share, and will accrue a 9% dividend until July 8, 2014 and, beginning on July 8, 2014 and on each one year anniversary
thereafter, such dividend rate will increase by an additional 3%. The dividend will be payable quarterly on September 30, December
31, March 31 and June 30, beginning on September 30, 2011 and on each conversion date in cash, or at the our option, in shares
of common stock. In the event that the convertible preferred stock is converted prior to July 8, 2014, we will pay the holder of
the converted preferred stock an amount equal to $270 per $1,000 of stated value of the convertible preferred stock, less the amount
of all prior quarterly dividends paid on such converted preferred stock before the relevant conversion date. Such &ldquo;make-whole
payment&rdquo; may be made in cash or, at our option, in shares of our common stock. In addition, beginning July 8, 2014, we will
pay dividends on shares of preferred stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends
(other than dividends in the form of common stock) actually paid on shares of the common stock when, and if such dividends are
paid. We will incur a late fee of 18% per annum on unpaid dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The conversion price of the convertible preferred stock is subject
to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain
pro-rata distributions to common stockholders. The conversion price will also be adjusted if we sell or grant any shares of common
stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower than the
then conversion price, except in the event of certain exempt issuances. In addition, the holders of convertible preferred stock
will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata to the
holders of its common stock to the same extent as if such holders had converted all of their shares of convertible preferred stock.
In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations
or recapitalizations, the holders of convertible preferred stock will be entitled to receive, upon conversion of their shares,
any securities or other consideration received by the holders of our common stock pursuant to the fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may become obligated to redeem the convertible preferred
stock in cash upon the occurrence of certain triggering events, including the failure to provide an effective registration statement
covering shares of common stock issuable upon conversion of the convertible preferred stock, material breach of certain contractual
obligations to the holders of the convertible preferred stock, the occurrence of a change in control, the occurrence of certain
insolvency events, or the failure of our common stock to continue to be listed or quoted for trading on one or more specified United
States securities exchanges or regulated quotation service. Upon the occurrence of certain triggering events, each holder of convertible
preferred stock will have the option to redeem such holder&rsquo;s shares of convertible preferred stock for a redemption price
payable in shares of common stock or receive an increased dividend rate of 18% on all of such holder&rsquo;s outstanding convertible
preferred stock. If the holders of shares of outstanding convertible preferred stock exercised such redemption right, we anticipate
that we would be obligated to issue approximately 12 million shares of common stock, in the aggregate, to such holders in consideration
of the redemption price based on the current number of 620 shares of the convertible preferred stock which have not yet been converted
as of the date of this report using 75% of an estimated stock price of $0.09 per common share and 130% of the aggregate face value
of the currently outstanding convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In conjunction with the issuance of the convertible preferred
stock, we also issued 17,166,667 warrants to the investors. Subject to certain ownership limitations, the warrants will be exercisable
at any time after their date of issuance and on or before the fifth-year anniversary thereafter at an exercise price of $0.25 per
share (price adjusted to $0.15 on February 1, 2012 and subsequently to 0.08 on August 10, 2012 in connection with the financings
below) of common stock. <I> </I>The exercise price of the warrants and, in some cases, the number of shares issuable upon exercise,
are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The exercise price and number of shares of common stock issuable upon
exercise will also be adjusted if we sell or grant any shares of common stock or securities convertible into, or rights to acquire,
common stock at an effective price per share that is lower than the then exercise price, except in the event of certain exempt
issuances. In addition, the warrant holders will be entitled to receive any securities or rights to acquire securities or property
granted or issued by us pro rata to the holders of its common stock to the same extent as if such holders had exercised all of
their warrants. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and
similar reorganizations or recapitalizations, the warrant holders will be entitled to receive, upon exercise of their warrants,
any securities or other consideration received by the holders of our common stock pursuant to the fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, until the first anniversary of date of the securities
purchase agreement, each investor may, in its sole determination, elect to purchase, severally and not jointly with the other investors,
in one or more purchases, in the ratio of such investor's original subscription amount to the original aggregate subscription amount
of all investors, additional units consisting of convertible preferred stock and warrants at a purchase price of $1,000 per unit
with an aggregate subscription amount thereof of up to $2,575,000, which units will be identical to the units of convertible preferred
stock and warrants issued in connection with the July 2011 closing. As described below, the investors exercised this right in the
transactions that closed on February 1, 2012. See the discussion below under the subheadings <I>Financing &ndash; February 2012
- Series B 9% Convertible Preferred Stock and Warrants.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of April 30, 2012, 17,166,666 shares of common stock had
been issued upon the conversion of all 2,575 shares of the Series A convertible preferred stock and 6,129,666 shares of common
stock were issued as &ldquo;make whole payments&rdquo; on such conversions of the Series A convertible preferred stock. As of September
1, 2012, 6,249,995warrants issued in connection with this transaction were outstanding as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; font-style: italic">Date&nbsp;Issued</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: center">Aggregate&nbsp;No.&nbsp;<BR> of<BR> Shares&nbsp;<BR>
Unexercised</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: center">Exercise<BR> Price</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: center">Expiration&nbsp;Date</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 25%">July 11, 2011*</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; text-align: right">6,249,995</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; text-align: right">.08</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">July 11, 2016</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>*Upon issuance of securities at a price per share of common
stock less than the then applicable exercise price, the warrants are subject to anti-dilution adjustment of the exercise price
and to the number of shares of common stock that may be purchased upon exercise of each warrant such that the aggregate exercise
price payable upon exercise of the warrant will be the same as the aggregate exercise price in effect immediately prior to such
adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been reclassified on Generex&rsquo;s balance
sheet as a liability under the caption &ldquo;Derivative Warrant Liability&rdquo; with any changes in fair value at each reporting
period recorded in earnings in accordance with ASC 815. On August 10, 2012, in connection with the financing below, the exercise
price was adjusted from $0.15 to $0.08 per share.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Financing &ndash; February 2012</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Series B 9% Convertible Preferred Stock and Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On January 31, 2012, we entered into a securities purchase agreement
with certain investors, pursuant to which we agreed to sell an aggregate of 2,000 shares of our newly designated non-voting Series
B 9% Convertible Preferred Stock and warrants to purchase up to an aggregate of 100% of the shares of our common stock issuable
upon conversion of the convertible preferred stock. The purchase closed on February 1, 2012. We sold the convertible preferred
stock and warrants in units, with each unit consisting of one share of convertible preferred stock and a warrant to purchase 100%
of the shares of the Company&rsquo;s common stock issuable upon conversion of such share of convertible preferred stock. Each unit
was sold at a negotiated price of $1,000, for an aggregate purchase price of $2,000,000. An aggregate of 26,666,666 shares of our
common stock are issuable upon conversion of, or exercise of, the convertible preferred stock and warrants. We received net proceeds
of approximately $1,975,000 from this transaction, which will be reflected in the financial statements for the fiscal quarter ending
April 30, 2012. We entered into this securities purchase agreement pursuant to the investors&rsquo; additional investment rights
existing under the securities purchase agreement dated July 8 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to certain ownership limitations, the Series B convertible
preferred stock will be convertible at the option of the holder at any time into shares of our common stock at an effective conversion
price of $0.15 per share (adjusted to $0.08 on August 10, 2012), and will accrue a 9% dividend until February 1, 2015 and, beginning
on February 1, 2015 and on each one year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend
will be payable quarterly on September 30, December 31, March 31 and June 30, beginning on the first such date after the original
issue date and on each conversion date in cash, or at our option, in shares of common stock. In the event that the convertible
preferred stock is converted prior to February 1, 2015, we will pay the holder of the converted preferred stock an amount equal
to $270 per $1,000 of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid on
such converted preferred stock before the relevant conversion date. Such &ldquo;make-whole payment&rdquo; may be made in cash or,
at our option, in shares of our common stock. In addition, beginning February 1, 2015, we will pay dividends on shares of preferred
stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than dividends in the form
of common stock) actually paid on shares of the common stock when, as and if such dividends are paid. We will incur a late fee
of 18% per annum on unpaid dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The conversion price of the Series B convertible preferred stock
will be subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if we sell or grant any shares
of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then conversion price, except in the event of certain exempt issuances. In addition, the holders of convertible preferred
stock will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata to
the holders of our common stock to the same extent as if such holders had converted all of their shares of convertible preferred
stock. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar
reorganizations or recapitalizations, the holders of convertible preferred stock will be entitled to receive, upon conversion of
their shares, any securities or other consideration received by the holders of our common stock pursuant to the fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may become obligated to redeem the Series B convertible preferred
stock in cash upon the occurrence of certain triggering events, including, material breach of certain contractual obligations to
the holders of the convertible preferred stock, the occurrence of a change in control of Generex, the occurrence of certain insolvency
events relating to Generex, or the failure of our common stock to continue to be listed or quoted for trading on one or more specified
United States securities exchanges or regulated quotation service. Upon the occurrence of certain triggering events, each holder
of convertible preferred stock will have the option to redeem such holder&rsquo;s shares of convertible preferred stock for a redemption
price payable in shares of common stock or receive an increased dividend rate of 18% on all of such holder&rsquo;s outstanding
convertible preferred stock. Late fees will apply on all redemption amounts not paid within five trading days of the payment date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to certain ownership limitations, the warrants will
be exercisable at any time after their date of issuance and on or before the fifth-year anniversary thereafter at an exercise price
of $0.15 (price adjusted to $0.08 on August 10, 2012 in connection with the financings below) per share of common stock. The exercise
price of the warrants and, in some cases, the number of shares issuable upon exercise, are subject to adjustment in the case of
stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions
to common stockholders. The exercise price and number of shares of common stock issuable upon exercise will also be adjusted if
we sell or grant any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective
price per share that is lower than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant
holders will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata
to the holders of our common stock to the same extent as if such holders had exercised all of their warrants. In the event of a
fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations,
the warrant holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received
by the holders of common stock pursuant to the fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The securities purchase agreement and the certificate of designation
authorizing the Series B convertible preferred stock include certain agreements and covenants for the benefit of the holders of
the convertible preferred stock, including restrictions on our ability to amend the certificate of incorporation and bylaws, pay
cash dividends or distributions with respect to our common stock or other junior securities, repurchase more than a <I>de minimis</I>
number of shares of our common stock or other junior securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">With very limited exceptions, the investors will have a pro
rata right of first refusal in respect of participation in any private debt or equity financings undertaken by us during the 12
months following the closing of the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We offered these securities privately pursuant to Rule 506 of
Regulation D under the Securities Act of 1933. We entered into a registration rights agreement with the investors pursuant to which
we agreed to file a registration statement with the SEC covering the public resale of the common stock issuable upon conversion
of the preferred stock, issuable as dividends on the preferred stock, issuable upon exercise of the warrants and issued as a finders&rsquo;
fee. We agreed to file the registration statement by March 16 and to use our best efforts to have the registration statement declared
effective within 120 days after closing. If these deadlines are not met, we will liable for liquidated damages up to 6% of the
purchase price under the securities purchase agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, if, during the six-month period after the issuance
of the warrants and continuing until such time that all of the securities may be sold without our meeting the current public information
requirement under Securities Act rule 144(c)(1), we fail to meet such requirement, we will pay liquidate damages equal to 2.0%
of the purchase price paid by each investor, payable in cash every 30 days until current public information for Generex is available
or is no longer required for the investors to rely on Rule 144 to transfer the securities (including underlying securities) acquired
under the securities purchase agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Contemporaneous with entering into the securities purchase agreement,
we and the investors also agreed to certain clarifications to the exercise price adjustment provisions under the outstanding warrants
issued in July 2011. Under that agreement, the parties agreed to an exercise price of $0.15 per share for the warrants to purchase
14,500,000 shares of common stock (24,166,664 shares after the anti-dilution adjustment required under the terms of the warrants),
which were in the process of being exercised prior to the parties entering into the securities purchase agreement, and unexercised
outstanding warrants to purchase 2,666,666 shares of common stock (4,444,442 shares following the required anti-dilution adjustment).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of September 1, 2012, 9,602,500 shares of common stock had
been issued upon the conversion of 768 of 2,000 shares of the Series B convertible preferred stock and 2,496,684 shares of common
stock were issued as &ldquo;make whole payments&rdquo; on such conversions of the Series B convertible preferred stock. As of September
1, 2012, 24,999,999 warrants issued in connection with this transaction were outstanding as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; font-style: italic">Date&nbsp;Issued</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: center">Aggregate&nbsp;No.&nbsp;<BR> of<BR> Shares&nbsp;<BR>
Unexercised</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: center">Exercise<BR> Price</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: center">Expiration&nbsp;Date</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 25%">February 1, 2012*</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; text-align: right">24,999,999</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; text-align: right">.08</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">February 1, 2017</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>*Upon issuance of securities at a price per share of common
stock less than the then applicable exercise price, the warrants are subject to anti-dilution adjustment of the exercise price
and to the number of shares of common stock that may be purchased upon exercise of each warrant such that the aggregate exercise
price payable upon exercise of the warrant will be the same as the aggregate exercise price in effect immediately prior to such
adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been reclassified on Generex&rsquo;s balance
sheet as a liability under the caption &ldquo;Derivative Warrant Liability&rdquo; with any changes in fair value at each reporting
period recorded in earnings in accordance with ASC 815. On August 10, 2012, in connection with the financing below, the exercise
price was adjusted from $0.15 to $0.08 per share.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Financing &ndash; August 2012</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Series C 9% Convertible Preferred Stock and Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On August 8, 2012, we entered into a securities purchase agreement
with certain investors, pursuant to which we agreed to sell an aggregate of 750 shares of our newly designated non-voting Series
C 9% Convertible Preferred Stock and warrants to purchase up to an aggregate of 100% of the shares of our common stock issuable
upon conversion of the convertible preferred stock. The purchase closed on August 10, 2012. We sold the convertible preferred stock
and warrants in units, with each unit consisting of one share of convertible preferred stock and a warrant to purchase 100% of
the shares of the Company&rsquo;s common stock issuable upon conversion of such share of convertible preferred stock. Each unit
was sold at a negotiated price of $1,000, for an aggregate purchase price of $750,000. An aggregate of 18,750,000 shares of our
common stock are issuable upon conversion of, or exercise of, the convertible preferred stock and warrants. We received net proceeds
of approximately $725,000 from this transaction, which will be reflected in the financial statements for the fiscal quarter ending
October 31, 2012. We entered into this securities purchase agreement pursuant to the investors&rsquo; additional investment rights
existing under the securities purchase agreement dated July 8 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to certain ownership limitations, the Series C convertible
preferred stock will be convertible at the option of the holder at any time into shares of our common stock at an effective conversion
price of $0.08 per share, and will accrue a 9% dividend until August 10, 2015 and, beginning on August 10, 2015 and on each one
year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend will be payable quarterly on September
30, December 31, March 31 and June 30, beginning on the first such date after the original issue date and on each conversion date
in cash, or at our option, in shares of common stock. In the event that the convertible preferred stock is converted prior to August
10, 2015, we will pay the holder of the converted preferred stock an amount equal to $270 per $1,000 of stated value of the convertible
preferred stock, less the amount of all prior quarterly dividends paid on such converted preferred stock before the relevant conversion
date. Such &ldquo;make-whole payment&rdquo; may be made in cash or, at our option, in shares of our common stock. In addition,
beginning August 10, 2015, we will pay dividends on shares of preferred stock equal to (on an as-if-converted-to-common-stock basis)
and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock
when, as and if such dividends are paid. We will incur a late fee of 18% per annum on unpaid dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The conversion price of the Series C convertible preferred stock
will be subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if we sell or grant any shares
of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then conversion price, except in the event of certain exempt issuances. In addition, the holders of convertible preferred
stock will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata to
the holders of our common stock to the same extent as if such holders had converted all of their shares of convertible preferred
stock. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar
reorganizations or recapitalizations, the holders of convertible preferred stock will be entitled to receive, upon conversion of
their shares, any securities or other consideration received by the holders of our common stock pursuant to the fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may become obligated to redeem the Series C convertible preferred
stock in cash upon the occurrence of certain triggering events, including, material breach of certain contractual obligations to
the holders of the convertible preferred stock, the occurrence of a change in control of Generex, the occurrence of certain insolvency
events relating to Generex, or the failure of our common stock to continue to be listed or quoted for trading on one or more specified
United States securities exchanges or regulated quotation service. Upon the occurrence of certain triggering events, each holder
of convertible preferred stock will have the option to redeem such holder&rsquo;s shares of convertible preferred stock for a redemption
price payable in shares of common stock or receive an increased dividend rate of 18% on all of such holder&rsquo;s outstanding
convertible preferred stock. Late fees will apply on all redemption amounts not paid within five trading days of the payment date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to certain ownership limitations, the warrants will
be exercisable at any time after their date of issuance and on or before the fifth-year anniversary thereafter at an exercise price
of $0.08 per share of common stock. The exercise price of the warrants and, in some cases, the number of shares issuable upon exercise,
are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The exercise price and number of shares of common stock issuable upon
exercise will also be adjusted if we sell or grant any shares of common stock or securities convertible into, or rights to acquire,
common stock at an effective price per share that is lower than the then exercise price, except in the event of certain exempt
issuances. In addition, the warrant holders will be entitled to receive any securities or rights to acquire securities or property
granted or issued by us pro rata to the holders of our common stock to the same extent as if such holders had exercised all of
their warrants. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and
similar reorganizations or recapitalizations, the warrant holders will be entitled to receive, upon exercise of their warrants,
any securities or other consideration received by the holders of common stock pursuant to the fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The securities purchase agreement and the certificate of designation
authorizing the Series C convertible preferred stock include certain agreements and covenants for the benefit of the holders of
the convertible preferred stock, including restrictions on our ability to amend the certificate of incorporation and bylaws, pay
cash dividends or distributions with respect to our common stock or other junior securities, repurchase more than a <I>de minimis</I>
number of shares of our common stock or other junior securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">With very limited exceptions, the investors will have a pro
rata right of first refusal in respect of participation in any private debt or equity financings undertaken by us during the 12
months following the closing of the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We offered these securities privately pursuant to Rule 506 of
Regulation D under the Securities Act of 1933. We entered into a registration rights agreement with the investors pursuant to which
we agreed to file a registration statement with the SEC covering the public resale of the common stock issuable upon conversion
of the preferred stock, issuable as dividends on the preferred stock, issuable upon exercise of the warrants and issued as a finders&rsquo;
fee. We agreed to file the registration statement by September 22 and to use our best efforts to have the registration statement
declared effective within 120 days after closing. If these deadlines are not met, we will liable for liquidated damages up to 6%
of the purchase price under the securities purchase agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, if, during the six-month period after the issuance
of the warrants and continuing until such time that all of the securities may be sold without our meeting the current public information
requirement under Securities Act rule 144(c)(1), we fail to meet such requirement, we will pay liquidate damages equal to 2.0%
of the purchase price paid by each investor, payable in cash every 30 days until current public information for Generex is available
or is no longer required for the investors to rely on Rule 144 to transfer the securities (including underlying securities) acquired
under the securities purchase agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Proceeds from Warrant Exercises</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may receive additional proceeds from the exercise of warrants
issued in the registered direct offerings conducted in June, August and September 2009, the sales to Seaside 88, LP in April, May
and June 2010, and the warrants issued in connection with the January 2011, July 2011, February 2012 and August 2012 registered
direct offerings and option thereunder, although some of the warrants include a cashless exercise feature.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In the transaction that closed on June 15, 2009, we sold shares of common stock and warrants exercisable for up to 8,600,000
shares of our common stock to investors and issued Midtown Partners &amp; Co., LLC, our exclusive placement agent for the transaction,
a warrant to purchase up to 244,926 shares of our common stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In the August 6, 2009 registered direct offering, we sold shares of common stock and warrants exercisable for up to 2,995,305
shares of our common stock to investors and issued a warrant to purchase 577,666 shares of our common stock to Midtown, which acted
as our exclusive placement agent for the August 2009 transaction.&nbsp;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In the transaction that closed on September 14, 2009, we sold an aggregate of 15,312,500 shares of our common stock and warrants
exercisable for up to 5,053,125 shares of our common stock to investors and issued warrants to purchase up to 969,526 shares of
our common stock to the two placement agents and a consultant in relation to the transaction.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In the closings under the common stock purchase agreement that occurred in April, May and June 2010, we sold Seaside 12,000,000
shares of our common stock and issued to Midtown, as placement agent, warrants to purchase an aggregate of 300,000 shares of our
common stock<I>.</I></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In connection with the securities purchase agreement dated January 24, 2011 and option thereunder, we sold an aggregate of
16,056,000 shares of our common stock and issued warrants exercisable for up to 16,056,000 shares of our common stock to investors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In connection with the securities purchase agreement dated July 7, 2011 and option thereunder, we sold an aggregate of 2,575
shares of our Series A 9% Convertible Preferred Stock and issued warrants exercisable for up to 17,166,666 shares of our common
stock to investors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In connection with the securities purchase agreement dated January 31, 2012, we sold an aggregate of 2,000 shares of our Series
B 9% Convertible Preferred Stock and issued warrants exercisable for up to 13,333,333 shares of our common stock to investors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In connection with the securities purchase agreement dated August 8, 2012, we sold an aggregate of 750 shares of our Series
C 9% Convertible Preferred Stock and issued warrants exercisable for up to 9,375,000 shares of our common stock to investors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of September 1, 2012, all of the warrants issued in the aforementioned
registered direct offerings were exercisable.&nbsp;&nbsp;At September 1, 2012, outstanding warrants issued in connection with the
June, August and September 2009 registered direct offerings, the April, May and June 2010 sales to Seaside and the January to April
2011, July 2011, February 2012 and August 2012 registered direct offerings were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: center">Date&nbsp;Issued</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; font-style: italic; text-align: center">Aggregate&nbsp;No.&nbsp;of<BR> Shares<BR> Unexercised</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; font-style: italic; text-align: center">Exercise<BR> Price</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD STYLE="font-weight: bold; font-style: italic; text-align: center">Expiration&nbsp;Date</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 45%">June 15, 2009</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">8,844,926</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">0.76</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">&nbsp;December 15, 2014</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>August 6, 2009</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,572,971</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.79</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;February 4, 2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>September 14, 2009</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,022,651</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;March 15, 2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>April 8, 2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.4726</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;February 9, 2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>April 21, 2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.4258</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;February 9, 2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>April 30, 2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.415</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;February 9, 2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>May 14, 2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.3496</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;February 9, 2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>May 28, 2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.351</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;February 9, 2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>June 11, 2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.3543</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">February 9, 2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>January 25 &ndash; April 8, 2011*</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,499,999</TD><TD STYLE="text-align: left">**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">January 25, 2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>July 7, 2011*</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,249,995</TD><TD STYLE="text-align: left">**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">July 7, 2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>February 1, 2012*</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,999,999</TD><TD STYLE="text-align: left">**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">January 31, 2017</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>August 10, 2012*</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,375,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">August 10, 2017</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>*Upon issuance of securities at a price per share of common
stock less than the then applicable exercise price, the warrants are subject to anti-dilution adjustment of the exercise price
and to the number of shares of common stock that may be purchased upon exercise of each warrant such that the aggregate exercise
price payable upon exercise of the warrant will be the same as the aggregate exercise price in effect immediately prior to such
adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been reclassified on Generex&rsquo;s balance
sheet as a liability under the caption &ldquo;Derivative Warrant Liability&rdquo; with any changes in fair value at each reporting
period recorded in earnings in accordance with ASC 815.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>**On August 10, 2012, in connection with the issuance of
the Series C convertible preferred stock, the exercise price of these warrants was adjusted down to $0.08 (from $0.15), with a
corresponding increase in warrants from 4,000,000 to 7,499,999, 3,333,331 to 6,249,995 and 13,333,333 to 24,999,999, respectively
warrants. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, we may receive additional proceeds from the exercise
of warrants issued in connection with the securities purchase agreement and related documents that we entered into on March 31,
2008 with existing institutional investors relating to a private placement of 8% secured convertible notes (the &ldquo;Notes&rdquo;)
and warrants (the &ldquo;Series Warrants&rdquo;) for aggregate gross proceeds to us of $20,650,000.&nbsp;&nbsp;As of June 1, 2009,
the outstanding principal balance and accrued interest on the Notes were satisfied in full.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Series Warrants issued in connection with the March 2008
securities purchase agreement included:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>Series A and A-1 Warrants, which are exercisable for a period of 7 years into an aggregate of 75% of the number of shares of
our common stock initially issuable upon conversion of the Notes, with the Series A Warrants being exercisable into 5,257,729 shares
immediately upon issuance and the Series A-1 warrants being exercisable into 7,541,857 shares as of October 1, 2008;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD>Series B Warrants, which became exercisable on October 1, 2008 into 100% of the shares of our common stock initially issuable
upon conversion of the Notes (initially 17,066,166 shares) and remain exercisable for a period of 18 months after the registration
statement covering the shares of common stock issuable upon conversion or exercise of the Notes and Warrants was declared effective
by the SEC; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD>Series C Warrants, which are exercisable for a period of 7 years as of October 1, 2008, but only to the extent that the Series
B Warrant are exercised and only in the same percentage that the Series B Warrants are exercised, up to a maximum percentage of
75% of the number of shares of our common stock initially issuable upon conversion of the Notes (initially a maximum of 12,799,580
shares).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The initial exercise price of each Series Warrant was $1.21.&nbsp;&nbsp;The
Series Warrants include a cashless exercise feature. The exercise price of the Series Warrants was subsequently reduced initially
to $0.50, then to $0.33, to $0.25, to $0.15 and currently to $0.08 as a result of a price protection provision triggered by our
offering of stock in private placements in May 2009, January and July 2011 and February and August 2012.&nbsp;&nbsp;This price
protection feature allows for the reduction in the exercise price of the Series Warrants in the event we subsequently issue common
stock or securities convertible into or exercisable for common stock, such as options and warrants, at a price per share less
than the Series Warrant exercise price then in effect. In addition, with any reduction to the Series Warrant exercise price, the
number of shares of common stock that may be purchased upon exercise of each Series Warrant will be increased or decreased proportionately,
so that after such adjustment the aggregate Series Warrant exercise price payable for the adjusted number of shares issuable upon
exercise will be the same as the aggregate Series Warrant exercise price in effect immediately prior to such adjustment. We account
for these warrants with price protection in accordance with ASC 815 as described in Note 13 to the <I>Notes to Consolidated Financial
Statements</I> included elsewhere in this registration statement.<B><I> </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of September 1, 2012, outstanding Series Warrants were as
follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: left; border-bottom: Black 1pt solid">Date&nbsp;Issued</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B><I>Aggregate&nbsp;No.&nbsp;of</I></B></FONT>&nbsp;<BR> <FONT STYLE="font-size: 10pt"><B><I>Shares&nbsp;Unexercised</I></B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B><I>Exercise</I></B></FONT>&nbsp;<BR> <FONT STYLE="font-size: 10pt"><B><I>Price*</I></B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1pt solid">Expiration&nbsp;Date</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 45%">March 31,&nbsp;2008</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">54,426,222</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">0.08</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">March 31, 2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>March 31, 2008</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,227,270</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.08</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">September 30, 2016</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>*Upon issuance of securities at a price per share of common
stock less than the then applicable exercise price, the warrants are subject to anti-dilution adjustment of the exercise price
and to the number of shares of common stock that may be purchased upon exercise of each warrant such that the aggregate exercise
price payable upon exercise of the warrant will be the same as the aggregate exercise price in effect immediately prior to such
adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been reclassified on Generex&rsquo;s balance
sheet as a liability under the caption &ldquo;Derivative Warrant Liability&rdquo; with any changes in fair value at each reporting
period recorded in earnings in accordance with ASC 815.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>**On August 10, 2012, in connection with the issuance of
the Series C convertible preferred stock, the exercise price of these warrants was adjusted down to $0.08 (from $0.15), with a
corresponding increase in warrants from 29,027,322 to </I>54,426,222<I> and 5,454,544 to10,227,270, respectively warrants. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cash Flows for the Nine Months ended April 30, 2012</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the nine months ended April 30, 2012, we used $7,158,458
in cash to fund our operating activities. The use for operating activities included a net loss of $7,914,440, changes to working
capital including an increase related to other current assets of $70,693, a decrease of $81,634 in deferred revenue and a decrease
related to accounts payable and accrued expenses of $1,267,420, offset by a decrease of $8,474 in accounts receivable, and a decrease
of $716,415 in inventory.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The use of cash was offset by non-cash expenses of $472,146
related to depreciation and amortization, write-offs related to abandoned patents of $88,582, stock-based compensation to employees
of $125,444, stock-based compensation issued in exchange for services rendered by consultants of $606,545 and common stock issued
for interest on our convertible preferred stock of $347,490. There was also a year-to-date non-cash loss of $1,603,720 related
to the fair valuation of the derivative liabilities at April 30, 2012 and an accounting gain of $1,793,087 related to the sale
of property and equipment (primarily assets held for investment).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We had net cash provided by investing activities of $4,500,712
in the nine months ended April 30, 2012, representing primarily the net proceeds after real estate commissions of $4,534,797 related
to the sale of properties held as investments, as well as sale of other fixed assets for $79,260, offset by payments for property
and equipment of $2,416 and costs incurred for patents of $110,929.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We had cash provided by financing activities in the nine months
ended April 30, 2012 of $1,082,549, which pertained to $1,975,000 in net proceeds from sales of convertible preferred stock in
February 2012 and $3,566,088 raised from mortgage loans. This was offset by principal repayments related to our long-term mortgage
debt of $4,488,539, which related primarily to the discharge of mortgages related to the sale of properties held for investment,
while the remainder pertained to regular monthly principal payments. There was also $30,000 received for warrant exercises during
the nine months ended April 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our net working capital at April 30, 2012 decreased to negative
$7,255,113 from negative $5,568,217 at July 31, 2011, which was attributed largely to our cash used in operations for the nine-month
period ended April 30, 2012, offset by the net proceeds from the sale of two properties held for investment in August 2011, the
series B convertible preferred stock financing in February 2012 and the mortgage financings in January and February 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cash Flows for the Year Ended July 31, 2011</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the fiscal 2011 year, we used $16,931,368 in cash to fund
our operating activities. The use for operating activities included a net loss of $21,675,867. Cash used in operating activities
decreased due to an increase of $1,811,120 related to accounts payable and accrued expenses, a decrease in inventory of $1,197,768,
a decrease related to other current assets of $116,171 and a decrease of $62,200 in accounts receivable, which were offset by a
$28,152 decrease in deferred revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The use of cash was offset by non-cash increases of approximately
$742,961 related to depreciation and amortization, $1,037,464 in stock-based compensation, amortization of options and option
modifications related to employees, executives and directors, $1,990,005 in stock-based compensation for services rendered and
$35,878 related to a loss on disposal of property and equipment. These non-cash increase adjustments to reconcile the net loss
to net cash used, were offset by a non-cash gain of $2,220,916 related to the revaluation of the derivative warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We had net cash outflows from investing activities of $287,367
in fiscal 2011, primarily consisting of payments for property and equipment of $52,383 and costs incurred for patents of $234,984.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We had net cash flows from financing activities of $6,130,127
in fiscal 2011. We received net proceeds of $3,939,000 from issuances of common stock in our January to April registered direct
offerings.&nbsp;&nbsp;We received $2,315,000 in net proceeds from sales of convertible preferred stock in July 2011. We received
$577 in cash proceeds from exercises of stock options. We made principal payments on our capital leases and long-term debt of
$124,450.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our net working capital at July 31, 2011 decreased to negative
$5,568,217 from $8,096,206 at July 31, 2010, which was attributed largely to our net cash outflows from our operating activities,
offset by our fiscal 2011 financing activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Conversion of Outstanding Series A and B 9% Convertible
Preferred Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of April 30, 2012, all outstanding shares of our Series A
9% Convertible Preferred Stock were converted into shares of our common stock. As of January 31, 2012, 17,166,666 shares of common
stock had been issued upon the conversion of 2,575 shares of Series A convertible preferred stock. The Series A convertible preferred
stock earned dividends at the rate of 9% per annum, payable quarterly on September 30, December 31, March 31 and June 30. Upon
conversion, we paid the holders of the Series A convertible preferred stock a &ldquo;make whole&rdquo; payment equal to $270 per
$1,000 of stated value of the Series A convertible preferred stock, less the amount of all prior quarterly dividends paid on such
converted preferred stock before the relevant conversion date. We issued 6,129,666 additional shares of common stock on such conversions
of the Series A convertible preferred stock. Dividends paid on the Series A Convertible Preferred Stock were $12,383 during the
nine months ended April 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">None of the 2,000 shares of our Series B 9% Convertible Preferred
Stock had been converted and no dividends had been paid through April 30, 2012. Between May 1, 2012 and September 6, 2012, 828
shares of our Series B 9% Convertible Preferred Stock have been converted. 9,602, 500 shares of common stock have been issued upon
the conversion of 768 shares of Series B convertible preferred stock and we issued 2,496,684 additional shares of common stock
on such conversions of the Series B convertible preferred as &ldquo;make whole payments&rdquo; on the conversions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Funding Requirements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We expect to devote substantial resources to obtaining regulatory
approval of Generex Oral-lyn&trade; in the U.S., Canada and Europe.&nbsp;&nbsp;We may also devote resources to obtaining approval
for the importation, marketing and commercialization of Generex Oral-lyn&trade; in other countries where we have licensed distributors,
including countries where we currently have approval or have submitted regulatory dossiers for approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the long-term agreement that we signed with sanofi-aventis
in December 2009, sanofi-aventis will manufacture and supply recombinant human insulin to us in the territories specified in the
agreement. Through this agreement, we will procure recombinant human insulin crystals for use in the production of Generex Oral-lyn&trade;.
The terms of the supply agreement required us to make certain minimum purchases of insulin from sanofi-aventis through the period
ended December 31, 2011, which minimum purchases we did not satisfy. <B><I> </I></B>Sanofi-aventis will be our exclusive supplier
in certain countries and a non-exclusive supplier in some other countries. Sanofi-aventis may delete any territory from the agreement
in which Generex Oral-lyn&trade; has not been approved for commercial sale by December 31, 2011. The prices under the supply agreement
are subject to adjustment beginning after December 31, 2012. As we did not meet the minimum purchase requirements by December 31,
2011, sanofi-aventis may terminate the agreement. Upon termination, we would be obligated to pay sanofi-aventis for all materials
and components that it has acquired or ordered to manufacture insulin based on our forecasts or minimum purchase commitments, all
related work-in-progress (at cost) and all finished insulin in inventory. We did not provide any forecasts to sanofi-aventis and
have not included any accruals related to the purchase commitments in our interim financial statements for the period ended April
30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition to the resources that we will dedicate to regulatory
approval and commercialization of Generex Oral-lyn&trade;, we will expend resources on further clinical development of our immunotherapeutic
vaccines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our future funding requirements and our ability to raise additional
capital will depend on factors that include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the timing and amount of expense incurred to complete our clinical trials, including any additional trials which are required;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the costs and timing of the regulatory process as we seek approval of our products in development;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the advancement of our products in development;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our ability to generate new relationships with industry partners throughout the world that will provide us with regulatory
assistance and long-term commercialization opportunities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>opportunities to pursue strategic partnerships through alliances or acquisitions in the consumer market for diabetes-related
products;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the timing, receipt and amount of sales, if any, from Generex Oral-lyn&trade;;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the cost of manufacturing (paid to third parties) of our licensed products, and the cost of marketing and sales activities
of those products;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the costs of prosecuting, maintaining, and enforcing patent claims, if any claims are made;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our ability to maintain existing collaborative relationships and establish new relationships as we advance our products in
development; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the receptivity of the financial market to biopharmaceutical companies.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Off-Balance Sheet Arrangements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have no off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in financial condition, revenue or expenses, results
of operations, liquidity, capital expenditures or capital resources that is material to investors, and we do not have any non-consolidated
special purpose entities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Contractual Obligations </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table of contractual obligations as of April 30,
2012 includes interest obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="18" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Payments&nbsp;Due&nbsp;by&nbsp;Period</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Contractual&nbsp;Obligations</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Less&nbsp;than&nbsp;1<BR> Year</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">1-3&nbsp;years</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">3-5&nbsp;years</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>More&nbsp;<BR> than</B>&nbsp;<BR> <B>5&nbsp;years</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 40%; text-align: left">Long-Term Debt Obligations</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,268,157</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,624,702</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">147,710</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">495,745</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Convertible Debt Obligations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Capital Lease Obligations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating Lease Obligations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">124,617</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">104,674</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,943</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Purchase Obligations *</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other Long-Term Liabilities Reflected on the Registrant's Balance Sheet under GAAP</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,392,774</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,729,376</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">167,653</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">495,745</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-indent: -9pt">* Although there are no minimum purchase
requirements for any of the remaining contract years under Generex&rsquo;s supply agreement with sanofi-aventis entered into on
December 7, 2009, Generex has not fully satisfied the minimum purchase requirements for the contract years ended December 31, 2010
and 2011. To the extent that Generex has any continuing long-term obligations to purchase insulin under this agreement, such obligations
are not included in the table above because the quantities and prices relating to Generex&rsquo;s obligations are subject to confidential
treatment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Certain Related Party Transactions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On December 9, 2005, our Board of Directors approved the grant
to Ms. Perri of a right of first refusal in respect of any sale, transfer, assignment or other disposition of either or both real
properties municipally known as 1740 Sismet Road, Mississauga, Ontario and 98 Stafford Drive, Brampton, Ontario (collectively,
the &ldquo;Properties&rdquo;). We granted Ms. Perri this right in recognition of the fair market value transfer to us during the
fiscal year ended July 31, 1998 by Ms. Perri (or parties related to her) of the Properties. In June 2011, we listed these real
properties for sale and received third party offers for such properties which we accepted conditionally based on Ms. Perri&rsquo;s
existing right of first refusal. Ms. Perri exercised her right of first refusal and the sale of these real properties to Ms. Perri
closed on August 26, 2011 on the same terms as the original third party offer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Through April 20, 2011, we used a management company to manage
all of our real properties. The property management company is owned by Rose Perri, Anna Gluskin and the estate of Mark Perri.&nbsp;&nbsp;Ms.
Perri and Ms. Gluskin are former executive officers of Generex.&nbsp;&nbsp;In the nine-month period ended April 30, 2011 and the
fiscal years ended July 31, 2010 and July 31, 2009, we paid the management company $40,778, $55,691 and $47,981, respectively,
in management fees. We believe that the amounts paid to the management company approximate the rates that would be charged by a
non-affiliated property management company.&nbsp;&nbsp;On April 20, 2011, we formally terminated the relationship, and no further
property management fees will be paid to this company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the period from June 2005 to November 2010, Generex paid
Time Release Corp. an aggregate amount of approximately $1,030,000.&nbsp;&nbsp;During the period from 2006 to 2008, Time Release,
at the direction of Ms. Perri, made payments of at least $285,000 of the funds received from Generex to Angara Investments Limited
and directed certain additional payments to Golden Bull Estates Ltd.&nbsp;&nbsp;Angara Investments is believed to be owned and
controlled by Ms. Perri and Ms. Gluskin, former executive officers and directors of Generex.&nbsp;&nbsp;Golden Bull Estates is
controlled by Ms. Perri.&nbsp;&nbsp;The payments to Time Release were discovered following the termination of Ms. Perri and were
not approved by the Board of Directors of Generex, or any committee thereof, at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the period from September 2006 through February 2010,
Generex made payments in excess of $700,000 to an Ecuadorian corporation, MediExpress S.A., at the direction of Ms. Perri.&nbsp;&nbsp;Generex
also paid approximately $385,000 to the principal of MediExpress during the period from August 2004 to December 2010 at the direction
of Ms. Perri.&nbsp;&nbsp;We are aware that Ms. Perri had other business relationships with Medi-Express&rsquo; principal, and we
have not been able to determine what business purpose of Generex was served by these payments</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Special Committee of independent members of the Board of
Directors retained outside counsel to investigate the foregoing payments. Based on the foregoing payments and other actions of
Ms. Perri discovered following her termination, Generex has filed a counterclaim to litigation commenced by Ms. Perri against Generex.
See the discussion under the caption &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo;
under the heading &ldquo;Legal Proceedings&rdquo; and the subheading &ldquo;Dispute with Former Officer&rdquo; in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recently Adopted Accounting Pronouncements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In January 2010, the FASB issued additional guidance on fair
value measurements and disclosures which requires reporting entities to provide information about movements of assets among Levels
1 and 2 of the three-tier fair value hierarchy established by the existing guidance. <FONT STYLE="color: black">The guidance was
effective for our fiscal year beginning August 1, 2011. </FONT>The adoption of this guidance did not have a significant impact
on our consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black">In May 2011, the FASB issued further
guidance on fair value measurements and disclosures which requires the categorization by level for items that are only required
to be disclosed at fair value and information about transfers between Level 1 and Level 2. In addition, the update provides guidance
on measuring the fair value of financial instruments managed within a portfolio and the application of premiums and discounts on
fair value measurements. The guidance requires additional disclosure for Level 3 measurements regarding the sensitivity of fair
value to changes in unobservable inputs and any interrelationships between those inputs. The guidance is effective for our interim
period ended April 30, 2012. </FONT>The adoption of this guidance did not have a significant impact on our consolidated financial
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recently Issued Accounting Pronouncements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In June 2011, the FASB issued guidance regarding the presentation
of Comprehensive Income within financial statements. The guidance is effective for annual periods beginning after December 15,
2011 and subsequent interim periods. We are currently evaluating the impact of this new accounting guidance on our consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Quantitative and Qualitative Disclosures About Market Risk</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are exposed to market risks associated with changes in the
exchange rates between U.S. and Canadian currencies and with changes in the interest rates related to our fixed rate debt. We do
not believe that any of these risks will have a material impact on our financial condition, results of operations and cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the present time, we maintain our cash in short-term government
or government guaranteed instruments, short-term commercial paper, and interest bearing bank deposits or demand bank deposits which
do not earn interest. A substantial majority of these instruments and deposits are denominated in U.S. dollars, with the exception
of funds denominated in Canadian dollars on deposit in Canadian banks to meet short-term operating needs in Canada. We do not presently
employ any hedging or similar strategy intended to mitigate against losses that could be incurred as a result of fluctuations in
the exchange rates between U.S. and Canadian currencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of April 30, 2012, we had fixed rate debt totaling $2,051,675.
This amount consists of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 55%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Loan&nbsp;Amount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center">Interest&nbsp;Rate<BR> per&nbsp;Annum</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 48%; text-align: right">604,322</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 47%; text-align: right">6.75</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,447,353</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.00</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,051,675</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;<I>Total</I> &nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These debt instruments mature from January 2013 through May
2015. As our fixed rate debt instruments mature, we will likely refinance such debt at the existing market interest rates which
may be more or less than interest rates on the maturing debt. Since this debt is fixed rate debt, if interest rates were to increase
100 basis points prior to maturity, there would be no impact on earnings or cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have neither issued nor own any long-term debt instruments,
or any other financial instruments, for trading purposes to which we would be subject to material market risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have warrants outstanding with price protection provisions
that allow for the reduction in the exercise price of the warrants in the event we subsequently issue common stock or securities
convertible into or exercisable for common stock, such as options and warrants, at a price per share less than the warrant exercise
price then in effect. In addition, with any reduction to the warrant exercise price, the number of shares of common stock that
may be purchased upon exercise of each warrant will be increased proportionately, so that after such adjustment the aggregate warrant
exercise price payable for the adjusted number of shares issuable upon exercise will be the same as the aggregate warrant exercise
price in effect immediately prior to such adjustment. We account for the warrants with price protection in accordance with FASB
ASC 815. We recognize the warrants with price protection in our consolidated balance sheet as liabilities. The warrant liability
is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of operations
under the caption <I>Change in fair value of derivative warrant liability.</I> While the change in fair value of the derivative
warrant liability has no effect on our cash flows, the gains or losses can have a significant impact on non-operating income and
expenses and thus the net income or loss. As of April 30, 2012, there were 55,148,530 warrants outstanding subject to price protection
provisions with an estimated fair value of $4,603,470 or $0.084 per warrant. If the estimated fair value of the warrants increases,
there will be a corresponding non-operating expense equal to the change in the value of the liability. Likewise, if the estimated
fair value of the warrants decreases, there will be a corresponding non-operating gain equal to the change in the value of the
liability. There is a directly proportional relationship between the fair value of the warrants and the market price of the stock;
therefore increases or decreases in the market price will lead to corresponding increases or decreases in the value of the warrant
liability and result in losses or gains, respectively, on our consolidated statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXECUTIVE OFFICERS AND DIRECTORS OF THE
REGISTRANT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; border-bottom: windowtext 1pt solid; font-weight: bold">Name</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: windowtext 1pt solid; font-weight: bold">Age</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 59%; border-bottom: windowtext 1pt solid; font-weight: bold">Position Held with Generex</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Mark Fletcher, Esquire</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">46</TD>
    <TD>&nbsp;</TD>
    <TD>President &amp; Chief Executive Officer, General Counsel</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Stephen Fellows</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">46</TD>
    <TD>&nbsp;</TD>
    <TD>Acting Chief Financial Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>David Brusegard</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">68</TD>
    <TD>&nbsp;</TD>
    <TD>Chief Operating Officer, Secretary</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>John P. Barratt</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">68</TD>
    <TD>&nbsp;</TD>
    <TD>Chairman of the Board</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Brian T. McGee</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">51</TD>
    <TD>&nbsp;</TD>
    <TD>Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Nola E. Masterson</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">64</TD>
    <TD>&nbsp;</TD>
    <TD>Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Eric von Hofe</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">57</TD>
    <TD>&nbsp;</TD>
    <TD>Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>James H. Anderson</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">66</TD>
    <TD>&nbsp;</TD>
    <TD>Director</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There are no family relationships among the directors and executive
officers. All directors are elected to hold office until the next annual meeting of stockholders following election and until their
successors are duly elected and qualified. Executive officers are appointed by the Board of Directors and serve at the discretion
of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Mark
A. Fletcher, Esq</I></B></FONT>. has served as our President and Chief Executive Officer since March 2011. Mr. Fletcher was elected
to serve as a member of the Board of Directors at our annual meeting of stockholders held on June 8, 2011. Mr. Fletcher was appointed
interim President and Chief Executive Officer on September 29, 2010 to succeed Anna E. Gluskin, who was terminated as President
and Chief Executive Officer on that date. On September 29, 2010, Mr. Fletcher was also appointed Secretary and served as such until
June 8, 2011. He served as Executive Vice President and General Counsel since April 2003, and he continues in his role as General
Counsel. From October 2001 to March 2003, Mr. Fletcher was engaged in the private practice of law as a partner at Goodman and Carr
LLP, a leading Toronto law firm. From March 1993 to September 2001, Mr. Fletcher was a partner at Brans, Lehun, Baldwin LLP, a
law firm in Toronto. Mr. Fletcher received his LL.B. from the University of Western Ontario in 1989 and was admitted to the Ontario
Bar in 1991. The Board believes that Mr. Fletcher&rsquo;s wide-ranging legal knowledge and extensive experience as a practicing
lawyer, his years of experience in the biotech industry, combined with his managerial skills, and business acumen and judgment,
provide our Board with valuable legal and operational expertise and leadership skills.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Stephen
Fellows</I></B><I> </I><FONT STYLE="font-style: normal">has</FONT></FONT><I> </I>served as our Acting Chief Financial Officer since
March 2011. Mr. Fellows has served as our Vice President, Finance since June 2009. From August 2005 to December 2008, Mr. Fellows
was employed by Sona Mobile Holdings Corporation, a publicly held software company which developed software applications for mobile
devices, where he served as Chief Financial Officer. From September 1996 to August 2005, Mr. Fellows worked at 3Com Corporation,
where he served in several positions including as the Director of Finance of the corporate accounting group in Marlborough, MA
and Director of Finance &amp; Operations of 3Com&rsquo;s Canadian subsidiary. From January 1992 to August 1996, Mr. Fellows worked
at Pennzoil Corporation where he spent time in the international mergers and acquisitions group in Houston, Texas, as well as four
years as Controller for Pennzoil Canada. Mr. Fellows received a Bachelor of Business Administration degree from Wilfrid Laurier
University in 1988 and earned his Chartered Accountants designation while articling with Arthur Andersen &amp; Company in Toronto
in 1990. The Board believes that Mr. Fellows&rsquo; business and financial experience, including his previous experience as a Chief
Financial Officer of a public company, combined with his educational background and business judgment provide our Board with valuable
financial expertise and leadership skills.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>David
Brusegard, Ph.D.</I></B></FONT> has served as Chief Operating Officer since March 2011 and was appointed Secretary on June 8, 2011.
<FONT STYLE="color: black">Dr. Brusegard served as a consultant to Generex from March 2010 to March 2011. From 2007 to March 29,
2011, Dr. Brusegard held the position of President of The OSLO Group, his consulting firm. He served as Chief Executive Officer
of the Pentius Group from 2004 to 2007. The Pentius Group was a five-company group which designed, sold, and marketed health insurance,
and operated a managed care facility staffed with nurses supervised by physician directors. Pentius Group&rsquo;s company assets
were sold in 2007 to Canam Insurance of Windsor, Ontario. Dr. Brusegard has a breadth of experience in several fields, including,
medical record design, health informatics, health insurance, digital mapping, database design, global positioning systems applications,
business management and strategic planning. He was a senior economist at Statistics Canada for a decade, an adjunct professor at
the University of Toronto and taught information ethics and information law at Ryerson University. He has consulted internationally
on information management for the World Bank as well as major consumer packaged goods companies, hospitals, municipalities, and
all levels of government. Other recent positions of note include; Vice President, Analytics for ICOM Communication and Information,
President of Geographic Decision Support Systems, and CEO, Tristar Software. Dr. Brusegard performed his graduate work at The University
of North Carolina at Chapel Hill, and the University of Calgary from which he holds a Ph.D. Phil., awarded in 1976.</FONT> The
board believes that Dr. Brusegard&rsquo;s extensive experience in corporate management, his prior work experience with medical
records, health insurance, data analysis and marketing, combined with his managerial skills and business acumen and judgment, provide
our Board with valuable operational expertise and leadership skills.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>John P. Barratt.</I></B> Independent Director since March
2003 and Chairman of the Board since September 2010. Mr. Barratt is currently a member of the Generex Compensation Committee, the
Generex Audit Committee and the Generex Corporate Governance and Nominating Committee. Mr. Barratt served as the Board Liaison
Officer of The Caldwell Partners International from July 2006 until May 2009. From April 2005 to July 2006, Mr. Barratt served
as Chief Operating Officer of The Caldwell Partners International. The Caldwell Partners International is a Canadian-based human
capital professional services company. Mr. Barratt from January 2002 until February 2007 served as the court-appointed Responsible
Person and Liquidation Manager of Beyond.com Corporation, Debtor-in-Possession, a U.S. Chapter 11 Bankruptcy case, in which capacity
Mr. Barratt reported to the bankruptcy court and to the U.S. Trustee&rsquo;s Office. From September 2000 to January 2002, Mr. Barratt
acted in the capacity of Chief Operating Officer of Beyond.com Corporation, an electronic fulfillment provider. Between 1996 and
2000, Mr. Barratt was partner-in-residence with the Quorum Group of Companies, an international investment partnership specializing
in providing debt and/or equity capital coupled with strategic direction to emerging technology companies. Between 1988 and 1995,
Mr. Barratt held a number of positions with Coscan Development Corporation, a real estate development company, the last position
of which was Executive Vice-President and Chief Operating Officer. Mr. Barratt currently serves on a number of Boards of Directors,
including Brookfield Investments Corporation and BAM Split Corporation, and is a member of the Board of Directors and Chairman
of the Risk Policy Committee of the Bank of China (Canada). Mr. Barratt also serves as Chairman of the Independent Review Committees
of BAM Split Corp. and Brookfield Soundvest Capital Management Ltd. Mr. Barratt is currently the Chief Financial Officer and a
member of the Advisory Board of Crystal Fountains Holdings Inc. and also served as interim Chief Financial Officer of its subsidiary,
Crystal Fountains Inc. from September 2008 to May 2009 and from May 2011 to present. The Board believes that Mr. Barratt&rsquo;s
wide-ranging business experience in various industries, his extensive service as an executive officer and director in various companies,
and his knowledge of finance, combined with his leadership skills and business judgment, provide our Board with valuable financial
and operational expertise and leadership skills.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Nola E. Masterson.</I></B> Independent Director since
May 2007. Ms. Masterson is currently the Chair of the Generex Compensation Committee and a member of the Generex Audit Committee
and the Generex Corporate Governance and Nominating Committee. Since 1982, she has been the chief executive officer of Science
Futures Inc., an investment and advisory firm. Ms. Masterson is currently Managing Member and General Partner of Science Futures
Management Co. LLC, which administers several venture funds invested in life science fund of funds and life science companies.
She also serves as Chairwoman of the Board of Directors of Repros Therapeutics Inc. and serves as Chair of the Compensation Committee
and Nominating and Corporate Governance Committee and is a member of the Audit Committee. Repros is a development stage biopharmaceutical
company formerly known as Zonagen, Inc. (currently trading on The NASDAQ Global Market under the symbol &ldquo;RPRX&rdquo;). Ms.
Masterson was the first biotechnology analyst on Wall Street, working with Drexel Burnham Lambert and Merrill Lynch, and is a co-founder
and first president of Sequenom, Inc., a genetic analysis company located in San Diego and Hamburg, Germany. She also started the
BioTech Meeting in Laguna Nigel, CA, the annual Biopharmaceutical Conference in Europe, and was nominated to the 100 Irish American
Business List in 2003. Ms. Masterson began her career at Ames Company, a division of Bayer, and spent eight years at Millipore
Corporation in sales and sales management. Ms. Masterson has 34 years of experience in the life science industry. She sits on the
Board of Directors for the American Diabetes Society Silicon Valley chapter, and is Chair Emeritus of the BayBio Institute. She
received her Masters in Biological Sciences from George Washington University, and continued Ph.D. work at the University of Florida.
The Board believes that Ms. Masterson&rsquo;s extensive experience in the life science industry and venture capital and investment
industry, her business experience, including her experience as an executive officer of an investment advisory company and as a
director of a publicly-traded biopharmaceutical company, combined with her business judgment, provide our Board with valuable scientific
and operational expertise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Brian T. McGee. </I></B>Independent Director since March
2004. Mr. McGee is currently the Chairman of the Generex Audit Committee and a member of the Generex Compensation Committee and
the Generex Corporate Governance and Nominating Committee. Mr. McGee has been a partner of Zeifmans LLP (&quot;Zeifmans&quot;)
since 1995. Mr. McGee began working at Zeifmans shortly after receiving a B.A. degree in Commerce from the University of Toronto
in 1985. Zeifmans is a Chartered Accounting firm based in Toronto, Ontario. A significant element of Zeifmans&rsquo; business is
public corporation accounting and auditing. Mr. McGee is a Chartered Accountant. Throughout his career, Mr. McGee has focused on,
among other areas, public corporation accounting and auditing. In 1992, Mr. McGee completed courses focused on International Taxation
and Corporation Reorganizations at the Canadian Institute of Chartered Accountants and in 2003, Mr. McGee completed corporate governance
courses on compensation and audit committees at Harvard Business School. In April 2004 Mr. McGee received his CPA designation from
The American Institute of Certified Public Accountants. Mr. McGee has received a certificate in International Financial Reporting
Standards issued by The Institute of Chartered Accountants in England and Wales in 2010. The Board believes that Mr. McGee&rsquo;s
knowledge and understanding of accounting and finance, his education and training in accounting and corporate governance, and his
extensive experience in the accounting industry, combined with his business acumen and judgment, provide our Board with valuable
accounting and financial expertise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>James H. Anderson, Jr., M.D.</I></B>
Independent Director since June 2011. Dr. Anderson is currently Chairman of the Corporate Governance and Nominating Committee and
a member of the Generex Compensation Committee, and has served on the Generex Scientific Advisory Board since October 2010. Dr.
Anderson is a diabetologist and endocrinologist who has been in the pharmaceutical industry for over 25 years. He is currently
CEO and President of Symcopeia, a private drug discovery and development company focused on new mechanisms of action for the treatment
of diabetes mellitus, and diabetes related obesity and cardiovascular diseases. From 2005 to 2009, Dr. Anderson served as Senior
Medical Director for Diabetes and Cardiometabolic Medicine with Eli Lilly and Company and had medical responsibility for diabetes
and cardiometabolic drug development, and drove the clinical development, registration and launch of two families of diabetes care
products, Humulin<SUP>&reg;</SUP> and Humalog. At Eli Lilly, Dr. Anderson contributed to the inventions of the first recombinant
DNA produced human insulin analog products, led multiple clinical drug development projects, was responsible for 6 US NDAs and
had clinical responsibility for all insulin products worldwide. Dr. Anderson is an elected Fellow of the Faculty of Pharmaceutical
Medicine of the Royal Colleges of Physicians of the UK, was a founding board member of the American Association of Pharmaceutical
Physicians and is a Fellow of the American College of Endocrinology. Dr. Anderson has been active in the American Diabetes Association
and is a member of the International Diabetes Federation, the European Association for the Study of Diabetes, and the Endocrine
Society. Dr. Anderson is a founding editorial board member of two journals for diabetes, and serves on the editorial boards or
as a reviewer for 5 other diabetes/endocrine journals. Dr. Anderson is a Clinical Associate Professor of Medicine for the Division
of Endocrinology and Metabolism at the Indiana University School of Medicine and was awarded an M.D. from the LSU School of Medicine.
Dr. Anderson attained the rank of Lieutenant Colonel in the US Army Medical Corps and during his military career, he served as
the Chairman, Department of Clinical Investigation at the Army&rsquo;s largest healthcare center, and Chief of the Medical Division
of the US Army Medical Research Institute for Infectious Diseases. Dr. Anderson also serves on the Medical/Scientific Advisory
Boards of Elona Biotechnologies, Inc. and Zimmerman Biotechnologies, LLC. The Board believes that Dr. Anderson&rsquo;s extensive
experience in the pharmaceutical industry, his experience in the diabetes and endocrinology fields, combined with his business
experience and judgment, provide our Board with valuable scientific and operational expertise.<B><I> </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Eric von Hofe, Ph.D. </I></B>Director since June 2011.
Dr. von Hofe is currently President of Antigen Express, Inc., a wholly-owned subsidiary of Generex. He has held this position since
2005. Since 2005, he has also been a Vice President of Generex. He has extensive experience with technology development projects,
including his previous position at Millennium Pharmaceuticals as Director of Programs &amp; Operations, Discovery Research. Prior
to that, Dr. von Hofe was Director, New Targets at Hybridon, Inc., where he coordinated in-house and collaborative research that
critically validated gene targets for novel antisense medicines. Dr. von Hofe also held the position of Assistant Professor of
Pharmacology at the University of Massachusetts Medical School, where he received a National Cancer Institute Career Development
Award for defining mechanisms by which alkylating carcinogens create cancers. He received his Ph.D. from the University of Southern
California in Experimental Pathology and was a postdoctoral fellow at both the University of Zurich and Harvard School of Public
Health. His work has been published in forty-eight articles in peer-reviewed journals, and he has been an inventor on four patents.
The Board believes that Dr. von Hofe <FONT STYLE="color: navy">'s </FONT>experience in private and publicly traded companies in
the biotechnology industry, including leadership and management positions and his scientific expertise, together with his practical
understanding of the requirements for success of both therapeutic and technology development, provide the Board with valuable scientific,
business and strategic expertise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I></I></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Scientific Advisory Board&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition to Dr. James H. Anderson, Jr., M.D<I>.</I>, the
following individuals are members of the Generex Scientific Advisory Board:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Dr. Gerald Bernstein, M.D., F.A.C.P.</I> has served on the
Scientific Advisory Board since 2001. Dr. Bernstein graduated from Dartmouth College and Tufts University School of medicine. He
is board certified in internal medicine (1966) and endocrinology and metabolism (1973). He entered practice in 1966 after completing
a research fellowship. Dr. Bernstein is an associate clinical professor at Albert Einstein College of Medicine in New York. He
is an attending physician at Beth Israel Medical Center, Lenox Hill Hospital (1974) and Montefiore Medical Center (1966). He served
on the National Board of Directors of the American Diabetes Association, its research foundation and many national committees.
Dr. Bernstein is a past president of the American Diabetes Association and was Director of the Beth Israel Health Care Systems
Diabetes Management Program. He is currently Director of the Diabetes Management Program of The Friedman Diabetes Institute at
Beth Israel Hospital in New York. He served as Vice President for Medical Affairs at Generex Biotechnology Corp. from 2001 to 2011,
and served as a Director of Generex from October 2002 to May 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Dr. Craig Eagle </I>attended medical school at the University
of New South Wales, Sydney, Australia and received his general internist training at Royal North Shore Hospital in Sydney. He completed
his hemato-oncology and laboratory hematology training at Royal Prince Alfred Hospital in Sydney. He was granted Fellowship in
the Royal Australasian College of Physicians (FRACP) and the Royal College of Pathologists Australasia (FRCPA). After his training
he performed basic research at the Royal Prince of Wales hospital to develop a new monoclonal antibody to inhibit platelets. He
joined Pfizer Australia in 2001 as part of the medical group. In Australia, his role involved leading and participating in scientific
research, regulatory and pricing &amp; re-imbursement negotiations for compounds in therapeutic areas including oncology, anti-infectives,
respiratory, arthritis and pain management. In 2003, Pfizer relocated Dr. Eagle to the United States where he was appointed as
the world wide lead for development of celecoxib in oncology to oversee the global research program. Since that time he has had
increasing responsibility for overseeing the global research plans and teams for irinotecan and dalteparin. In 2007, he became
head of the oncology therapeutic area global medical group for Pfizer, including the US oncology business. Dr. Eagle has led, or
been directly involved with, teams that resulted in eight new products or indications. As part of his current role at Pfizer, he
has led the integration of the Pfizer/Wyeth oncology businesses and portfolio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR STYLE="mso-special-character: line-break">
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Director and Officer Involvement in Certain Legal Proceedings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There are no material proceedings to which any director, executive
officer or affiliate of the Company, any owner of record or beneficial owner of more than five percent of any class of voting securities
of the Company, or any associate of any such director, executive officer, affiliate or security holder is a party adverse to the
Company or has a material interest adverse to the Company. There are no family relationships between any of the Company&rsquo;s
executive officers or directors and there are no arrangements or understandings between a director and any other person pursuant
to which such person was elected as director. There were no material changes to the procedures by which shareholders may recommend
nominees to the Board since the Company&rsquo;s last disclosure of such policies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the best of our knowledge, none of the following events have
occurred during the past ten years that are material to an evaluation of the ability or integrity of any director, director nominee
or executive officer of the Company:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 96%">any bankruptcy petition filed by or against, or any appointment of a receiver, fiscal agent or similar Officer for, the business or property of such person, or any partnership in which such person was a general partner or any corporation of which such person was an executive officer either, in each case, at the time of the filing for bankruptcy or within two years prior to that time;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 96%">any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-family: Symbol">&middot;</TD>
    <TD STYLE="width: 96%">being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining such person from, or otherwise limiting, the following activities:</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(i)&nbsp;&nbsp;acting as a futures commission merchant, introducing
broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated
by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter,
broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan
association or insurance company, or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(ii)&nbsp;&nbsp;engaging in or continuing any conduct or practice
in connection with such activity;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(iii) engaging in any type of business practice; or engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal
or state securities laws or federal commodities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>being found by a court of competent jurisdiction in a civil action, the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or federal commodities law, and the judgment in such civil action or finding by the SEC or the Commodity Futures Trading Commission has not been subsequently reversed, suspended, or vacated;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>being the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial instructions or insurance companies, including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>being the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a) (26) of the Exchange Act), any registered entity (as defined in Section 1(a) (29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or person associated with a member.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Director Independence</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Board of Directors currently consists of six members, four
of whom are &ldquo;independent&rdquo; as defined under applicable rules of the SEC and The NASDAQ Stock Market LLC. The four independent
members of the Board of Directors are John P. Barratt, Brian T. McGee, Nola E. Masterson and James H. Anderson.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For a director to be considered independent, the Board must
determine that the director has no relationship which, in the opinion of the Board, would interfere with the exercise of independent
judgment in carrying out the responsibilities of a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All members of the Audit Committee, the Compensation Committee
and the Corporate Governance and Nominating Committee must be independent directors under NASDAQ rules. Members of the Audit Committee
also must satisfy a separate SEC independence requirement, which provides that they may not accept directly or indirectly any consulting,
advisory or other compensatory fee from the Company or any of its subsidiaries other than their directors&rsquo; compensation.
In addition, under SEC rules, an Audit Committee member who is an affiliate of the issuer (other than through service as a director)
cannot be deemed to be independent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXECUTIVE COMPENSATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Compensation, Discussion &amp; Analysis</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Compensation Philosophy </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">We are a development stage company focused
on research, development, and commercialization of our proprietary drug delivery platform for administration of large molecule
drugs to the oral cavity through a hand-held aerosol spray applicator. We are in the process of developing proprietary formulations
of drugs that can be delivered through an oral spray thereby eliminating the need for injections and have focused on our Oral-lyn&trade;
insulin formulation, which is administered as a spray into the oral cavity. We also have a subsidiary, Antigen Express, which focuses
on developing proprietary immunomedicines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">As a development stage company, our future
depends on the ability of our executives to obtain necessary regulatory approvals to launch Oral-lyn&trade; in key markets such
as the United States, Canada, and Europe, as well as furthering the development of other products in our pipeline through the clinical
trial and regulatory process. Attracting, retaining, and motivating key executives who can lead Generex through this process is
critical to our success. We have a small executive team that works together closely. Our executives perform multiple roles and
need to be able to respond to changing market dynamics quickly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">For these reasons, we seek to ensure that
our compensation programs are competitive with similarly sized companies with which we compete for executive talent. The goals
of our executive compensation program are to attract and retain top executives, to motivate executives to achieve our business
objectives, to align executive and shareholder interests, and to recognize individual contributions and overall business success.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">During the fiscal year ended July 31, 2011,
the Compensation Committee of the Board of Directors evaluated the types and amounts of compensation that it believed were appropriate
for our President and Chief Executive Officer, our Chief Operating Officer and our Acting Chief Financial Officer, who are considered
Generex&rsquo;s policy making executives and who are listed in the Summary Compensation Table. We refer herein to these executives
as the &ldquo;named executives.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In addition to the compensation of our
named executives, the Compensation Committee also reviews and approves the compensation of members of our senior management, including
our Vice President, Regulatory Affairs and our Controller, as well as the President of our subsidiary, Antigen Express, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Board of Directors appointed three
of the four current members of the Compensation Committee on May 28, 2008 following the 2008 Annual Meeting of the Stockholders
and all three of these members served throughout fiscal 2011. The fourth member was appointed on June 8, 2011 following the 2011
Annual Meeting of the Stockholders. During fiscal 2011, the Compensation Committee convened once to evaluate and discuss compensation
for the named executives with respect to stock awards during the fiscal year ended July 31, 2011, bonuses for the fiscal year ended
July 31, 2010 and base salaries for the calendar year ended December 31, 2011. During the majority of fiscal 2011, the three members
of the Compensation Committee also comprised the Special Committee of the board of directors and met several times as the Special
Committee to discuss various compensation and executive personnel matters, including the terminations of Ms. Gluskin and Ms. Perri
and the appointments of Mr. Fletcher, Mr. Fellows and Dr. Brusegard to their respective positions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Historically, the key components of our
executive compensation have been base salary, cash bonuses, and equity incentives, including stock bonuses, restricted stock, and
stock options awarded at the discretion of our Compensation Committee and Board of Directors. As a development stage company, we
have reviewed compensation of our named executives annually and at the discretion of the Compensation Committee as warranted by
our financial condition and achievement of our business goals. While the elements of compensation are considered separately, the
Compensation Committee ultimately considers the value of the total compensation package provided to the individual named executive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Compensation Committee believes the
company&rsquo;s compensation program must take into account the following factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">past levels of compensation adjustments;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>the expected transition of the company from a development stage company to an operating company;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>the nature of the regulatory approval process for the company&rsquo;s products; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify">the potential for growth of the company in the event
that regulatory approvals are obtained.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In fiscal 2011, the Compensation Committee
reviewed and implemented changes in base salaries for certain of the named executives, upon their appointment to new positions
in fiscal 2011 and awarded equity incentive awards to the named executives primarily in recognition of efforts made to stabilize
the company and effect the company&rsquo;s reorganization plan. The Compensation Committee did not award any of the named executives
cash bonuses during fiscal 2011 for fiscal 2010 performance and contributions. The Compensation Committee has not made any determinations
as to bonuses or equity awards for the named executives with respect to performance or contributions for the fiscal year ended
July 31, 2011, but the Compensation Committee expects to consider the matter in the future during fiscal 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; color: red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In administering the executive compensation
program, our Compensation Committee has relied upon market data provided on a periodic basis by external consultants, as well as
its own understanding and assessment of executive compensation trends. In its consideration of compensation for the named executives,
the Compensation Committee has reviewed compensation data for pharmaceutical and biotechnology companies, market data provided
by external compensation consultants, compensation data compiled by a third-party compensation data firm and publicly available
executive compensation data for publicly traded companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Use of Compensation Consultant and Benchmarking</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In the fiscal year ended July 31, 2011,
the Compensation Committee did not engage any compensation consultants or engage in benchmarking activities, however in November
2009, the Compensation Committee undertook a comprehensive review of compensation for the then named executives which has been
considered when making salary recommendations in the fiscal year ended July 31, 2011. As part of the previous fiscal year review
the Compensation Committee engaged a compensation consultant, J. Thelander Consulting. A significant portion of the consultant&rsquo;s
review consisted of benchmarking Generex&rsquo;s then named executive compensation against similar positions at public companies
in the biotechnology and pharmaceutical industry. The list of companies considered primarily had market capitalizations between
$80 and $160 million which was considered comparable to Generex&rsquo;s market capitalization at that time. In addition, one other
company was considered which had a market capitalization in excess of $1 billion, as it had been considered in past compensation
studies and as its primary product is somewhat similar to Generex&rsquo;s Oral-lyn&trade;, in that it is also a drug delivery system
for insulin. The companies considered in the consultant&rsquo;s report included the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><U>Market capitalization between $80 and
$160 million</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>ArQule (ARQL)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Progenix Pharmaceuticals, Inc. (PGNX)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Idenix Pharmaceuticals, Inc. (IDIX)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Discovery Laboratories, Inc. (DSCO)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Ideera Pharmaceuticals, Inc. (IDRA)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><U>Market capitalization greater than $1
billion</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Mannkind (MNKD)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The consultant&rsquo;s report concluded
that base salaries for the then named executives were at or above average compared to the benchmarked companies, while bonus targets,
equity incentive compensation and overall total compensation (i.e. base salary, bonuses and equity compensation combined) were
below average. The Compensation Committee reviewed and considered the consultant&rsquo;s fiscal 2010 report <FONT STYLE="color: black">when
making decisions regarding compensation changes and levels for the new named executives in fiscal 2011, but the </FONT>Compensation
Committee members exercised discretion and formulated <FONT STYLE="color: black">their own conclusions when the Committee determined
the compensation components discussed below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Determination of Compensation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Compensation Committee typically makes compensation determinations,
including any increases in base salary for the next calendar year and any bonuses in respect of the prior fiscal year, before or
during the first calendar quarter of each year. The Compensation Committee follows such a schedule in order to eliminate the need
to award retroactive salary increases. In addition, the Compensation Committee intends to review compensation arrangements in the
first calendar quarter to ensure that compensation levels are appropriate in light of Generex&rsquo;s financial position and performance
at that time. Due to the changes in management in fiscal 2011, including the terminations of the previous President and Chief Executive
Officer and the Chief Financial Officer and Chief Operations Officer, as well as<FONT STYLE="color: black"> the appointment of
our </FONT>Executive Vice President and General Counsel to interim President and Chief Executive Officer in September 2010 and
to President and Chief Executive Officer in March 2011<FONT STYLE="color: black">, the appointment of our VP Finance to Acting
Chief Financial Officer in March 2011 and the appointment of our Chief Operating Officer in March 2011</FONT>, the Committee did
not follow such a schedule in fiscal 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In considering whether to award bonuses
in respect of fiscal year 2010 or to make changes to base compensation for calendar year 2011, in addition to the compensation
consultant&rsquo;s report from fiscal 2010, the Compensation Committee also reviewed publicly available executive compensation
information for Generex&rsquo;s peer companies, executive compensation information as reported in biotechnology and pharmaceutical
industry publications, unique aspects of each executive&rsquo;s roles within Generex, including multiple roles performed by each
named executive, as well as contribution and performance of individual named executives towards achievement of overall company
performance, and alignment with shareholder expectations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal"><I>Components of Compensation</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><I>Base Salary</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Base salary provides a fixed amount of
compensation necessary to attract and retain key executives. It is guaranteed compensation to the named executives for performance
of core duties. Base salaries for the named executives may be adjusted upon recommendation by the Compensation Committee and ratification
by the Board of Directors. Historically, annual base salaries for the named executives have been reviewed periodically relative
to the base pay levels for each executive&rsquo;s position based on the peer group. The Compensation Committee last undertook such
a review in November 2009. Levels of base salary are generally targeted at the market&rsquo;s second quartile (51% &ndash; 75%),
but also reflect the compensation goals adopted by the Compensation Committee, operational goals determined by management, the
named executive&rsquo;s individual performance, contribution of the named executive to overall corporate performance, and the level
of responsibility of the named executive with respect to his or her specific position. The level of base salary also reflects multiple
titles and additional responsibilities of the named executives driven by the operational needs of the company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Salary adjustments for the President and
Chief Executive Officer and the Acting Chief Financial Officer were last made to base salary compensation in March 2010, which
were made effective retroactive to January 1, 2010. No salary adjustments were made in calendar year 2009. In determining the levels
of the base salary adjustments for the named executives, if any, the Compensation Committee considered the achievement of certain
performance goals by the named executives, including those considered in connection with the award of cash bonuses and enumerated
below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In September 2010, in connection with the
termination of our former President and Chief Executive Officer, our Executive Vice President and General Counsel was appointed
to interim President and Chief Executive Officer. The Compensation Committee recommended, and the Special Committee of the Board
of Directors approved a base salary adjustment of $150,000 or 46% to $475,000 effective immediately. The increase was considered
appropriate in relation to the assumption of the additional duties and responsibilities of the new role, in addition to his duties
as General Counsel, as well as based on the comparison to peer companies prepared by the compensation consultant in fiscal 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In March 2011, the Compensation Committee
recommended, and the Special Committee of the Board of Directors approved a base salary adjustment of 12.5% for our VP Finance
from $200,000 to $225,000, effective retroactive to January 1, 2011, in connection with his appointment to Acting Chief Financial
Officer. The increase was considered appropriate in relation to the assumption of the additional duties and responsibilities of
the new role.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In March 2011, the Compensation Committee
recommended, and the Special Committee of the Board of Directors approved the hiring and appointment of our Chief Operating Officer
at an annual base salary of $225,000 effective immediately. The base salary was considered appropriate in relation to the salaries
of our other executives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><I>Cash Bonuses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Performance-based compensation is a key
component of our compensation philosophy. Historically, cash bonuses have been provided to attract, motivate, and retain highly
qualified executives on a competitive basis and provide financial incentives that promote company success. From time to time in
the past, the Compensation Committee has granted bonuses to reward achievement relative to specific performance objectives. In
awarding bonuses, the Compensation Committee considers various factors, including the named executive&rsquo;s position within Generex,
attainment of specific business objectives and performance milestones, and the named executive&rsquo;s individual contributions
thereto. The Committee exercises discretion with respect to the weight that it gives to these and other factors in determining
bonuses. The Compensation Committee also retains discretion with respect to whether any bonuses are paid to the named executives,
the amounts of any such bonuses, and the form of any such bonuses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Compensation Committee did not grant
or accrue any bonuses in fiscal 2011, with respect to the fiscal year ended July 31, 2010, due to the recent appointments of all
the named executives to their current positions, as well as in consideration of the current financial position of the company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><I>Long-Term Incentives and Equity Awards</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Our compensation program also includes
long-term incentive compensation in the form of equity grants subject to a vesting schedule. We believe such incentive compensation
further aligns the interests of management with those of stockholders and enhances shareholder value. Currently, we do not have
any long-term cash incentive programs in place for the named executives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Long-term equity incentive grants are discretionary.
In determining whether such grants are warranted, the Compensation Committee considers our compensation strategy, market practice
concerning long-term incentives provided to executives at peer companies and within the broader market, and the named executive&rsquo;s
specific roles within Generex. At the present, equity incentive awards are subject to vesting over a period of time and are not
tied to specific performance measures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Equity grants have historically been made
through stock options under our various plans, including Generex&rsquo;s 2000 Stock Option Plan, 2001 Stock Option Plan, as amended,
and Amended and Restated 2006 Stock Plan, which also allows grants of restricted stock. We consider the costs to the company of
granting stock options under Statement of Financial Accounting Standard (SFAS) 123(R) as compared to the costs to named executives
of higher income tax liabilities associated with the granting of restricted stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In March 2011, the Compensation Committee
recommended, and the Special Committee of the board of directors approved, the following discretionary awards of options to purchase
shares of our common stock to our named executives:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 55%; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Named Executive</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">No. of Shares Underlying Options</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 88%; text-align: left">Mr. Fletcher</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Mr. Fellows</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Dr. Brusegard</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 13.5pt">The award to Mr. Fletcher were made pursuant
to the 2006 Stock Plan (1,100,000 options) and pursuant to the 2001 Stock Option Plan (400,000 options). The awards to Mr. Fellows
and Dr. Brusegard were made pursuant to the 2001 Stock Option Plan. <FONT STYLE="color: black">The stock options have an exercise
price equal to $0.282 per share, the closing price of the Company&rsquo;s common stock on the OTC Bulletin Board on March 25, 2011.
The options awarded were fully vested at the date of grant and shall expire on the fifth anniversary of the date of grant, subject
to earlier termination under the terms set forth in the 2001 Stock Option Plan or</FONT> subject to truncation upon cessation of
employment as specified in the 2006 Stock Plan (as applicable).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Compensation Committee recommended
these option grants <FONT STYLE="color: black">in recognition of efforts made to stabilize the Corporation and create a reorganization
plan involving, among other possible actions, a reverse stock split of the common stock of the Corporation, par value $0.001 per
share (the &ldquo;Common Stock&rdquo;), listing of the Corporation&rsquo;s Common Stock on a national stock exchange, spin-out
of Antigen Express, Inc., and a rights offering to the Corporation&rsquo;s stockholders (the &ldquo;Reorganization Plan&rdquo;)
and as an incentive for the successful implementation of the Reorganization Plan. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal"><I>Benefits and Perquisites</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Named executives may participate in benefit
plans that are offered generally to salaried employees such as short and long term disability, health and welfare benefits, and
paid time off<B>. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">We provide very limited perquisites. During
fiscal 2011, subsequent to his appointment as interim President and Chief Executive Office on September 29, 2010, we provided our
President and Chief Executive Officer a car allowance with an estimated value of $800 per month to compensate use of his car for
business purposes. During fiscal 2011, up to the dates of their respective terminations on September 29, 2010 and March 25, 2011,
respectively, we provided our former President and Chief Executive Officer and our former Chief Operating Officer and Chief Financial
Officer a car allowance with an estimated value of $800 per month to compensate use of their cars for business purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">We do not offer deferred compensation plans,
defined benefit plans, supplemental executive retirement plans, supplemental life insurance, benefit restoration plans, or tax
gross-ups on change-in-control benefits<B>. </B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Employment and Severance Agreements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">During fiscal 2011, we had terms of employment
covering our President and Chief Executive Officer, as described in &ldquo;Employment Agreements and Potential Payments Upon Termination
or Change-In-Control&rdquo;, which clarify the terms and conditions of his employment. These terms provide clarity concerning the
employment relationship and provide a competitive benefit level to the executive, thus promoting stability at the President and
Chief Executive Officer position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">We have agreed to provide severance benefits
to the President and Chief Executive Officer as set forth in the terms of his employment. The intent of such severance is to provide
the President and Chief Executive Officer with financial security in the event of a covered termination (including change in control)
and to thus support executive retention. To be eligible for certain benefits, including cash payments, under these arrangements,
a named executive must experience a covered termination, which may include a change in control, a material reduction in executive
compensation, a material change in duties, or a material breach in the agreement by Generex. The benefits payable to our President
and Chief Executive Officer upon a change in control of Generex require two conditions, or &ldquo;double triggers,&rdquo; to be
satisfied: the change in control must occur, and the named executive&rsquo;s employment must be terminated, voluntarily or involuntarily,
as a result of such event. Under the terms of employment, our President and Chief Executive Officer would receive a benefit upon
a change in control only if he terminates his employment in connection with such event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">As of the end of fiscal 2011, each of the
current named executive officers held stock options or restricted stock granted pursuant to either the 2001 Stock Option Plan or
the 2006 Stock Plan. The 2001 Plan provides that outstanding options will become immediately exercisable and vested upon a change
in control, unless the Board of Directors or its designee determines otherwise. In the event that Generex will not be the surviving
corporation, the Board or its designee has flexibility under the 2001 Plan to determine how to treat stock options. The 2001 Plan
does not condition the acceleration and vesting of stock options in such an event upon an option holder&rsquo;s termination of
employment; however, the terms of the 2001 Plan provide that, unless otherwise provided by the Board or its designee, an option
holder can exercise outstanding options after the date of his or her termination of employment only if the option holder voluntarily
terminated employment with Generex or was terminated without cause by Generex. Under the terms of the 2006 Plan, unvested stock
options and restricted stock will become exercisable or unrestricted, as applicable, thirty days prior to the change-in-control
event and such acceleration is not conditioned upon the termination of a participant&rsquo;s employment with Generex. The 2006
Plan further provides that if Generex is not the surviving corporation as a result of a change in control, all outstanding options
that are not exercised will be assumed by, or replaced with comparable options or rights by, the surviving corporation, and outstanding
grants of restricted stock will be converted to similar grants of equity in the surviving corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Tax and Accounting Considerations</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Compensation Committee considers implications
of tax and accounting requirements impacting compensation programs from the perspective of the company and the individual named
executive officers. The Compensation Committee may also consider sections of the tax code which impact Generex or individual taxpayers.
For U.S. taxpayers, the Committee structures its programs to comply with Section 409A of the Internal Revenue Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Given the high individual income tax liabilities
which result from the awarding of restricted stock to our executives who are all tax residents of Canada, the Compensation Committee
expects to grant future equity awards in the form of stock options for the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Compensation Committee Report </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Compensation Committee of Generex Biotechnology Corporation
has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with management and,
based on such review and discussions, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion
and Analysis be included in Generex&rsquo;s Annual Report on Form 10-K for the year ended July 31, 2011 and in Generex&rsquo;s
2012 Proxy Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">THE COMPENSATION COMMITTEE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Nola E. Masterson, Chairperson</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">John P. Barratt</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Brian T. McGee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">James H. Anderson, Jr.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Executive Compensation Tables</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal">The following executive compensation
tables pertain to the fiscal year ended July 31, 2011. Therefore, the tables contain information relating to the named executives
who served as of the fiscal year end and refer to the positions held by such named executives as of July 31, 2011. On September
29, 2010, the Board of Directors terminated Mrs. Gluskin in her employment as President and Chief Executive and appointed Mark
A. Fletcher as interim President and Chief Executive Officer and Secretary. On that date, the Board also appointed John P. Barratt
as Chairman of the Board. On March 25, 2011, the Board of Directors terminated Ms. Perri in her employment as Chief Financial Officer
and Chief Operations Officer and appointed Mark A. Fletcher as President and Chief Executive Officer, appointed Stephen Fellows
as Acting Chief Financial Officer and appointed David Brusegard as Chief Operations Officer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Summary Compensation Table</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table provides information concerning compensation
of Generex&rsquo;s named executives for Generex&rsquo;s last three completed fiscal years ending July 31, 2009, 2010 and 2011.
In respect of fiscal years 2009, 2010 and 2011, the named executives did not receive compensation in the form of non-equity incentive
plan compensation or changes in pension value or non-qualified deferred compensation earnings. Therefore, the table below does
not include columns for these types of compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 7pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font-size: 7pt">
    <TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">Name&nbsp;and<BR> Principal&nbsp;Position</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Year</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Salary<BR> ($)</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Bonus<BR> ($)</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Stock<BR> Awards<BR> ($)</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Option<BR> Awards<BR> ($)</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">All&nbsp;Other<BR> Compensation<BR> ($)</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Total<BR> ($)</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="width: 16%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Anna E. Gluskin</TD><TD STYLE="width: 1%; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2011</TD><TD STYLE="width: 1%; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="width: 9%; text-align: right; background-color: rgb(204,255,204); font-size: 7pt">87,500</TD><TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="width: 1%; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="width: 9%; text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="width: 1%; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="width: 9%; text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="width: 1%; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="width: 9%; text-align: right; background-color: rgb(204,255,204); font-size: 7pt">1,324</TD><TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)</TD><TD STYLE="width: 1%; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="width: 9%; text-align: right; background-color: rgb(204,255,204); font-size: 7pt">20,389</TD><TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(3)</TD><TD STYLE="width: 1%; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="width: 9%; text-align: right; background-color: rgb(204,255,204); font-size: 7pt">109,213</TD><TD STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Former President and</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2010</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">525,000</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">324,468</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">27,846</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(3)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">877,314</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Chief Executive Officer</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2009</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">525,000</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">37,750</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(1)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">9,219</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">23,991</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(3)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">595,960</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Rose C. Perri</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2011</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">403,992</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">28,603</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">20,389</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(3)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">452,984</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Former Chief Operating Officer,</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2010</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">420,000</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">284,739</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">27,846</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(3)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">732,585</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Chief Financial Officer,</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2009</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">420,000</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">33,031</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(1)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">24,583</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">23,991</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(3)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">501,605</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Treasurer and Secretary</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Mark A. Fletcher</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2011</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">479,642</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(4)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">356,660</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)(6)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">836,302</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">President and</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2010</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">320,833</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(4)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">225,000</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">233,970</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">779,803</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Chief Executive Officer</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2009</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">315,000</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(5)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">18,875</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(1)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">333,875</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Stephen Fellows</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2011</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">212,788</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(7)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">81,338</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)(6)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">294,126</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Acting Chief</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2010</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">198,179</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(7)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">112,865</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(2)(8)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">311,044</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Financial Officer</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2009</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">24,821</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(7)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">24,821</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 7pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">David Brusegard</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2011</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">161,465</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(9)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">41,940</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(6)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">203,405</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">Chief Operating</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2010</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">34,857</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(9)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">34,857</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;Officer</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: rgb(204,255,204); font-size: 7pt">2009</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">(9)</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD><TD STYLE="background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">$</TD><TD STYLE="text-align: right; background-color: rgb(204,255,204); font-size: 7pt">0</TD><TD STYLE="text-align: left; background-color: rgb(204,255,204); font-size: 7pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">*Cash compensation is stated in the table in U.S. dollars.
To the extent any cash compensation was paid in Canadian dollars, it has been converted into U.S. dollars based on the average
Canadian/U.S. dollar exchange rate for the years ended July 31, 2011, July 31, 2010 and July 31, 2009<FONT STYLE="font-family: Times New Roman, Times, Serif"><B>.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1) This amount represents the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718 with respect to the fiscal years ended July 31, 2010, 2009 and 2008 for restricted
stock awards granted in August 2007, a portion of which was in respect of fiscal 2007 and was immediately vested. The fair value
is calculated using the closing price of Generex stock on the date of grant. For additional information, refer to Note 15 to our
Consolidated Financial Statements included elsewhere in this prospectus. This amount reflects our accounting expense for these
awards, and does not correspond to the actual value that will be recognized by the named executives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2) This amount reflects the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718 for option awards granted in May 2008 and March 2010. Such awards were made pursuant
to the 2006 Stock Plan. Specifically, amounts reflected in this column relate to options to purchase shares of common stock granted
to Ms. Gluskin (50,000 shares) and Ms. Perri (125,000 shares) on May 27, 2008 and options to purchase shares of common stock granted
to Ms. Gluskin (500,000 shares), Ms. Perri (400,000 shares), Mr. Fletcher (300,000 shares) and Mr. Fellows (250,000 shares) on
March 8, 2010. The options vest incrementally over two years. The total fair values of the respective option grants are being
expensed over the two-year vesting periods for the options. We utilize a closed-form model (Black-Scholes) to estimate the fair
value of stock option grants on the date of grant. Assumptions used in the calculation of these amounts are as follows: risk-free
interest rate of 0.12%, expected dividend yield of 0.0%, 10 year expected life of options and expected volatility rate of 105.7%.
Also included in this column is the incremental fair value, computed as of October 20, 2009 in accordance with FASB ASC Topic
718, with respect to the modified options. While these amounts reflect the aggregate grant date fair value computed in accordance
with ASC Topic 718, they may not correspond to the actual value that will be recognized by the option holders. See <I>Grants of
Plan-Based Awards in Fiscal 2011</I> for a list of the options for which the expiration dates were extended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3) Represent 50% of the management fee paid to the property
management company that manages all of our real estate properties and is owned by Ms. Perri, Ms. Gluskin and the estate of Mark
Perri, our former Chairman of the Board. In addition, Ms. Gluskin and Ms. Perri each received a car allowance with an estimated
value of $800 per month to compensate use of their cars for business purposes, but such amounts have not been included in this
column as the total value of such perquisites is less than $10,000 per named executive for fiscal years 2011, 2010 and 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4) This amount reflects a base salary of $325,000 earned by
the named executive up until September 28, 2010 and a salary increase to $475,000 as approved by the Special Committee of the
Board on September 29, 2011. The amount also reflects a car allowance of approximately $11,000 USD per year paid to the executive
in Canadian currency.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(5) This amount reflects a base salary of $315,000 earned by
the named executive, as approved by the Board on May 6, 2008 effective retroactively to January 1, 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(6) This amount reflects the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718 for option awards granted in March 2011. Such awards were made pursuant to the
2001 and 2006 Stock Plans. Specifically, amounts reflected in this column relate to options to purchase shares of common stock
Mr. Fletcher (400,000 shares under 2001 Stock Option Plan and 1,100,000 shares under 2006 Stock option Plan), Dr. Brusegard and
Mr. Fellows (200,000 shares each under 2001 Stock Option Plan) on March 29, 2011. The options vested upon the grant. We utilize
a closed-form model (Black-Scholes) to estimate the fair value of stock option grants on the date of grant. Assumptions used in
the calculation of these amounts are as follows: risk-free interest rate of 0.013%, expected dividend yield of 0.0%, 5 year expected
life of options and expected volatility rate of 101%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(7) This amount reflects a base salary of $175,000 earned by
the named executive until December 31, 2009, a salary of $200,000 earned by the named executive from January 1, 2010 until December
31, 2010 and a salary increase to $225,000 retroactive as of January 1, 2011 as approved by the Special Committee of the Board
on March 25, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(8) This amount represents the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718 with respect to the fiscal years ended July 31, 2011, 2010 and 2009 for options
awards granted in October 2009. The total fair values of the respective option grants are being expensed over the four-year vesting
periods for the options. We utilize a closed-form model (Black-Scholes) to estimate the fair value of stock option grants on the
date of grant. Assumptions used in the calculation of these amounts are as follows: risk-free interest rate of 0.14%, expected
dividend yield of 0.0%, 5 year expected life of options and expected volatility rate of 104%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(9) This amount reflects a base salary of $225,000 earned by
the named executive from March 25, 2011, as approved by the Special Committee of the Board on March 25, 2011. Also includes consulting
fees paid to named executive in respect to fiscal years ended July 31, 2011 and 2010, prior to his appointment to the position
of Chief Operating Officer on March 25, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Grants of Plan-Based Awards in Fiscal
2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The following table provides information
about equity awards granted to the named executives or modified in the fiscal year ended July 31, 2011, including: (1) the grant
date; (2) the number of shares underlying stock options awarded to the named executives, (3) the number of shares underlying existing
stock options the terms of which were extended, (4) the exercise price of the stock options awarded or extended, and (5) the grant
date fair value of each equity award computed under FASB ASC 718.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Grant&nbsp;Date</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">All&nbsp;Other&nbsp;Option<BR> Awards:&nbsp;Number&nbsp;of<BR> Securities<BR> Underlying&nbsp;Options<BR> (#)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Exercise&nbsp;Price&nbsp;or<BR> Base&nbsp;Price&nbsp;of<BR> Option&nbsp;Awards<BR> ($/Sh)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Grant&nbsp;Date&nbsp;Fair<BR> Value&nbsp;of&nbsp;Stock<BR> and&nbsp;Option&nbsp;<BR> Awards</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 50%; text-align: left">Mark Fletcher, President &amp; Chief Executive Officer</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center; padding-left: 10pt">March 25, 2011</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1,500,000</TD><TD STYLE="width: 1%; text-align: left">(1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.282</TD><TD STYLE="width: 1%; text-align: left">(2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.2097</TD><TD STYLE="width: 1%; text-align: left">(3)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stephen Fellows, Acting Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 10pt">March 25, 2011</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">(4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.282</TD><TD STYLE="text-align: left">(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.2097</TD><TD STYLE="text-align: left">(3)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">David Brusegard, Chief Operating Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 10pt">March 25, 2011</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">(4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.282</TD><TD STYLE="text-align: left">(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.2097</TD><TD STYLE="text-align: left">(3)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>The options were granted on March 25, 2011 pursuant to the terms of our 2006 Stock Plan (1,100,000 options) and pursuant to
the terms of our 2001 Stock Option Plan (400,000). The options vested immediately upon the date of the grant.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>The options have an exercise price equal to the official closing price of our common stock on OTC bulletin board on the date
of grant ($0.282 per share).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(3)</TD><TD>This column shows fair value of the options calculated using the Black Scholes value on the grant date of $0.2097. See note
6 of the Summary Compensation Table for a discussion of fair value calculation related to the options and the valuation assumptions
made with respect to the options.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(4)</TD><TD>The options were granted on March 25, 2011 pursuant to the terms of our 2001 Stock Option Plan. The options vested immediately
upon the date of the grant.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Compensation Elements; Employment Agreements and Agreements
Providing Payments Upon Retirement, Termination or Change in Control for Named Executives</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Historically, the key components of our executive compensation
have been base salary, cash bonuses, and equity incentives, including stock bonuses, restricted stock, and stock options awarded
at the discretion of our Compensation Committee and Board of Directors. As a development stage company, we have reviewed compensation
of our executive management team from time to time and at the discretion of the Compensation Committee when warranted by our financial
condition and achievement of our business goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Set forth below are the material terms of employment for the
President and Chief Executive Officer as of the end of fiscal 2011. The terms of employment provide for certain payments upon retirement,
termination or change in control. Such benefits are in addition to benefits available generally to salaried employees who joined
the company prior to 2011, such as distributions under the 401(k) savings plan, disability and death benefits and accrued vacation
pay.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Terms of Employment for Mr. Fletcher</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March 17, 2003, our Board of Directors approved the terms
and conditions of Mr. Fletcher&rsquo;s employment, prior to his joining Generex on or about April 21, 2003. Pursuant to the terms
of his employment, Mr. Fletcher holds the position of Executive Vice President and General Counsel. Subject to termination in accordance
with the terms and conditions of his employment, Mr. Fletcher's term of service extends through March 16, 2008, which term has
not been formally extended to date. Mr. Fletcher is entitled to receive annual base compensation and may receive additional cash
bonuses at the discretion of the Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On September 29, 2010, Generex and Mr. Fletcher agreed to amend
the terms of Mr. Fletcher&rsquo;s employment to provide that the replacement of Ms. Gluskin as a director or Chief Executive Officer
will not constitute a &ldquo;change of control&rdquo; and to provide for an increase in Mr. Fletcher&rsquo;s base salary (to $475,000)
upon his appointment as interim Chief Executive Officer.&nbsp;&nbsp;Under the terms of his employment with Generex, Mr. Fletcher
is entitled to receive annual base compensation and may receive additional cash bonuses at the discretion of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The terms of his employment provide that Mr. Fletcher will be
bound by standard restrictive covenants prohibiting him from disclosing confidential information about Generex. Either party may
give at least 12 months&rsquo; notice of non-renewal of the term; if such notice is not given, the term of employment will be indefinite.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Generex may terminate its obligations with respect to Mr. Fletcher&rsquo;s
employment as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%">&nbsp;</TD>
    <TD STYLE="width: 7%">&nbsp;(i)</TD>
    <TD STYLE="width: 78%">upon 30 days written notice;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;(ii)</TD>
    <TD>for &ldquo;cause&rdquo;;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;(iii)</TD>
    <TD>in the event of Mr. Fletcher&rsquo;s disability;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;(iv)</TD>
    <TD>in the event of Mr. Fletcher&rsquo;s death; or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;(v)</TD>
    <TD>in the event of Mr. Fletcher voluntarily resigning.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Fletcher may terminate his obligations upon 30 days written
notice upon:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 15%">&nbsp;(a)</TD>
    <TD STYLE="width: 78%">a material change in his duties,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;(b)</TD>
    <TD>a material reduction in compensation,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;(c)</TD>
    <TD>a material breach or default by Generex, or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;(d)</TD>
    <TD>a change in control of Generex.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the event that Mr. Fletcher terminates his employment voluntarily
(and not under the circumstances described in (a), (b), (c) or (d) above) or Generex terminates his employment under the circumstances
described in (ii), (iii), (iv) or (v) above, Mr. Fletcher will be entitled only to that portion of his base salary due and owing
as of his last day worked, less any amounts owed to Generex. Under these circumstances, he will not be entitled to any bonus or
incentive compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If Generex terminates Mr. Fletcher&rsquo;s employment under
the circumstance described in (i) above (and not for cause, disability or death) or Mr. Fletcher gives notice of termination pursuant
to (a), (b), (c) or (d) above, Mr. Fletcher will be entitled to receive a lump sum severance payment on the termination date in
an amount equal to 18 months of base salary plus&nbsp;the average annual bonus paid to him during each fiscal year of the term
of his employment and he will be entitled to participate in and receive benefits for 18 months after the termination date. Mr.
Fletcher will have 90 days after the eighteenth month anniversary of the termination date to exercise vested options, and all unvested
options that he holds will accelerate and fully vest on the termination date. He has no duty to mitigate his damages based on the
termination of employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Outstanding Equity Awards at 2011 Fiscal
Year-End</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table provides information on the current holdings
of stock option by the named executives. This table includes unexercised and unvested option awards as of July&nbsp;31,&nbsp;2011.
Each equity grant is shown separately for each named executive. The vesting schedule for each outstanding award is set forth in
the footnotes to the table. We do not have any current &ldquo;stock awards&rdquo; or &ldquo;equity incentive plans&rdquo; as defined
in Regulation S-K Item 402(a)(6)(iii); thus, the columns relating to stock awards and equity incentive awards are not included
in the table below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="font-weight: bold; text-align: center"></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="15" STYLE="font-weight: bold; text-align: center; padding-left: 0">Option Awards&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">Name</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; padding-left: 0">Grant&nbsp;Date</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Number&nbsp;of&nbsp;<BR> Securities<BR> Underlying<BR> Unexercised&nbsp;<BR> Options&nbsp;(#)&nbsp;<BR> Exercisable</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Number&nbsp;of<BR> Securities<BR> Underlying<BR> Unexercised<BR> Options&nbsp;(#)<BR> Unexercisable</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Option<BR> Exercise<BR> Price&nbsp;($)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center">Option&nbsp;<BR> Expiration<BR> Date</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD NOWRAP STYLE="width: 40%; text-align: left; background-color: rgb(204,255,204)">Mark E. Fletcher, Executive Vice</TD><TD NOWRAP STYLE="width: 1%; background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-left: 0; background-color: rgb(204,255,204)">3-25-2011</TD><TD NOWRAP STYLE="width: 1%; background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="width: 9%; text-align: right; background-color: rgb(204,255,204)">1,500,000</TD><TD NOWRAP STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204)">(1)</TD><TD NOWRAP STYLE="width: 1%; background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="width: 9%; text-align: right; background-color: rgb(204,255,204)">0</TD><TD NOWRAP STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="width: 1%; background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204)">$</TD><TD NOWRAP STYLE="width: 9%; text-align: right; background-color: rgb(204,255,204)">0.282</TD><TD NOWRAP STYLE="width: 1%; text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="width: 1%; background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; background-color: rgb(204,255,204)">3-25-2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">President and</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0; background-color: rgb(204,255,204)">3-8-2010</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">300,000</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">(2)</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">0</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">$</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">0.64</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: rgb(204,255,204)">3-8-2020</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">General Counsel</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0; background-color: rgb(204,255,204)">12-13-2004</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">250,000</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">(3)</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">0</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">$</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">0.61</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: rgb(204,255,204)">10-26-2014</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0; background-color: rgb(204,255,204)">4-5-2005</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">327,869</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">(4)</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">0</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">$</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">0.001</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: rgb(204,255,204)">10-26-2014</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0; background-color: rgb(204,255,204)">4-5-2005</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">142,857</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">(5)</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">0</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">$</TD><TD NOWRAP STYLE="text-align: right; background-color: rgb(204,255,204)">0.001</TD><TD NOWRAP STYLE="text-align: left; background-color: rgb(204,255,204)">&nbsp;</TD><TD NOWRAP STYLE="background-color: rgb(204,255,204)">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: rgb(204,255,204)">10-26-2014</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; background-color: White">Stephen Fellows,</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0; background-color: White">3-25-2011</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: White">200,000</TD><TD NOWRAP STYLE="text-align: left; background-color: White">(1)</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: White">0</TD><TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: White">$</TD><TD NOWRAP STYLE="text-align: right; background-color: White">0.282</TD><TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: White">3-25-2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD NOWRAP STYLE="text-align: left; background-color: White">Acting Chief</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0; background-color: White">3-8-2010</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: White">250,000</TD><TD NOWRAP STYLE="text-align: left; background-color: White">(2)</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: White">0</TD><TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: White">$</TD><TD NOWRAP STYLE="text-align: right; background-color: White">0.64</TD><TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: White">3-8-2020</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; background-color: White">Financial Officer</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0; background-color: White">10-10-2009</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: White">35,000</TD><TD NOWRAP STYLE="text-align: left; background-color: White">(6)</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; background-color: White">26,250</TD><TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; background-color: White">$</TD><TD NOWRAP STYLE="text-align: right; background-color: White">0.642</TD><TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: White">10-10-2014</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD NOWRAP STYLE="text-align: left">David Brusegard,</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0">3-25-2011</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">200,000</TD><TD NOWRAP STYLE="text-align: left">(1)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">0</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">$</TD><TD NOWRAP STYLE="text-align: right">0.282</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP>3-25-2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD NOWRAP STYLE="text-align: left">Chief Operating Officer</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 0">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1)These options were granted on March 25, 2011. The grants
were made pursuant to the terms of our 2001 and 2006 Stock Plans. Specifically, amounts reflected in this column relate to options
to purchase shares of common stock Mr. Fletcher (400,000 shares under 2001 Stock Option Plan and 1,100,000 shares under 2006 Stock
option Plan), Dr. Brusegard and Mr. Fellows (200,000 shares each under 2001 Stock Option Plan). The exercise price per share is
equal to the closing price of Generex common stock on March 25, 2011. These options were exercisable immediately upon their grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2)These options were granted on March 8, 2010. The grants
were made pursuant to the terms of our 2006 Stock Plan. The exercise price per share is equal to the closing price of Generex
common stock on March 8, 2010. The options vested as follows: 33% of the options were exercisable on the date of grant; 33% of
the options became exercisable on August 1, 2010, and the remaining 33% of the options became exercisable on August 1, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 12pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3)<FONT STYLE="color: black">&#9;</FONT>These stock options
were approved by the Board of Directors on April 5, 2005 with an effective grant date of December 13, 2004. The exercise price
per share is equal to the closing price of Generex common stock on December 13, 2004. These options were exercisable immediately
upon their grant. The fair value of Generex common stock on April 5, 2005 was $0.56 per share. The expiry date of these options
was extended in October 2009 to October 26, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4)&#9;These options were granted to Mr. Fletcher representing
a bonus of $200,000 awarded to Mr. Fletcher on April 5, 2005. The number of shares awarded was calculated using the closing price
of the common stock on The NASDAQ Capital Market on December 13, 2004 ($0.61 per share). The options were immediately exercisable
on the date of grant. They were issued under the 2001 Plan. The fair value of Generex common stock on April 5, 2005 was $0.56 per
share. The expiry date of these options was extended in October 2009 to October 26, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(5)&#9;These options were issued to Mr. Fletcher on April 5,
2005 in satisfaction of retroactive salary adjustment as of August 1, 2004 and unpaid salary amounts accrued through March 31,
2005 ($80,000). The number of shares was calculated using the closing price of the common stock on the NASDAQ Capital Market on
April 4, 2005 ($0.56 per share). The options were immediately exercisable on the date of grant and were issued under the 2001 Plan.
The expiry date of these options was extended in October 2009 to October 26, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(6)These options were granted on October 10, 2009. The grants
were made pursuant to the terms of our 2006 Stock Plan. The exercise price per share is equal to the closing price of Generex common
stock on October 10, 2009. The options vest equally over a four-year period starting with the first anniversary of the grant on
October 10, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Option Exercises and Stock Vested in
Fiscal Year 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In January 2011, Ms. Perri exercised 576,752 options with an
exercise price of $0.001 per share which were granted on December 13, 2004. None of the named executive officers exercised any
outstanding options in fiscal year 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table sets forth the number of shares acquired
and the value realized upon the vesting of restricted stock awards during fiscal year 2011 for each of the named executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt"></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>&nbsp;Stock&nbsp;Awards</B></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">Name</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number&nbsp;of&nbsp;Shares<BR> Acquired&nbsp;on&nbsp;<BR> Vesting&nbsp;(#)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Value&nbsp;Realized&nbsp;on<BR> Vesting&nbsp;($)&nbsp;(1)</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 76%; font-weight: bold; text-align: center">Stephen Fellows<BR> Acting Chief Financial Officer</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; font-weight: bold; text-align: right">8,750</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 9%; font-weight: bold; text-align: right">0</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%">(1)</TD>
    <TD STYLE="width: 98%">Value realized on vesting is based on the fair market value of our common stock on the date of vesting and does not necessarily reflect proceeds actually received by the named executive.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Nonqualified Deferred Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Other Benefit Plans</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have no defined benefit or actuarial pension plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Potential Payments Upon Termination or
Change-in-Control</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table shows potential payments to our named executives
under existing employment agreements, plans or arrangements, whether written or unwritten, for various scenarios involving termination
of employment or a change in control, assuming termination on July&nbsp;31, 2011 and, if applicable, based upon the closing stock
price of Generex common stock on that date. These benefits are in addition to benefits available generally to salaried employees
who joined the company prior to 2011, such as distributions under the 401(k) savings plan, disability and death benefits and accrued
vacation pay.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table provides the intrinsic value (that is, the
value based upon Generex&rsquo;s stock price, and in the case of options minus the exercise price) of equity awards that would
become exercisable or vested if the named executive had died or become disabled or been terminated as of July 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The terms of employment for Mr. Fletcher do not provide specific
definitions for the various termination events. For the purposes of the table, below are the standard definitions for certain termination
events as defined in the Amended Generex 2001 Stock Option Plan, which we refer to as the &ldquo;2001 Plan,&rdquo; and the Amended
and Restated 2006 Stock Plan, which refer to as the &ldquo;2006 Plan.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&quot;Cause&quot; means that a named executive has:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%">&nbsp;</TD>
    <TD STYLE="width: 7%">(i)</TD>
    <TD STYLE="width: 78%">breached his or her employment or service contract with Generex;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(ii)</TD>
    <TD>engaged in disloyalty to Generex, including, without limitation, fraud, embezzlement, theft, commission of a felony or proven dishonesty in the course of his or her employment or service;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(iii)</TD>
    <TD>disclosed trade secrets or confidential information of Generex to persons not entitled to receive such information;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(iv)</TD>
    <TD>breached any written confidentiality, non-competition or non-solicitation agreement between the named executive and Generex; or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(v)</TD>
    <TD>has engaged in such other behavior detrimental to the interests of Generex as determined by the Compensation Committee.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;Change in Control&rdquo; means any of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%">&nbsp;</TD>
    <TD STYLE="width: 7%">(i)</TD>
    <TD STYLE="width: 78%">a liquidation or dissolution of Generex,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(ii)</TD>
    <TD>a sale of all or substantially all of Generex&rsquo;s assets,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(iii)</TD>
    <TD>a merger in which Generex&rsquo;s stockholders hold less than a majority of the voting stock in the surviving corporation, or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(iv)</TD>
    <TD>when a person or group acquires control of a significant percentage of the voting stock without the approval of the Board of Directors (20% under the 2001 Plan and 50% or more under the 2006 Plan).</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;Disability&quot; means being unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result
in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>Potential Payments Upon Termination or
Change in Control for Named Executives as of July 31, 2011</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 7pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font-size: 7pt">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Name</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Benefit</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Cause</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Without<BR> Cause/Non-<BR> Renewal</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Voluntary<BR> Termination<BR> by&nbsp;<BR> Executive</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Breach&nbsp;by<BR> Generex&nbsp;(1)</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Change&nbsp;in<BR> Control</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Disability</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; font-size: 7pt">Death</TD><TD NOWRAP STYLE="font-weight: bold; font-size: 7pt"><SUP>&nbsp;</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt; width: 14%">Mark A. Fletcher</TD><TD NOWRAP STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; text-align: left; padding-left: 0; font-size: 7pt">Cash Payment</TD><TD NOWRAP STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="width: 7%; text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="width: 7%; text-align: right; font-size: 7pt">1,015,745</TD><TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt"><SUP>(4)</SUP></TD><TD NOWRAP STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="width: 7%; text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="width: 7%; text-align: right; font-size: 7pt">1,015,745</TD><TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt"><SUP>(4)</SUP></TD><TD NOWRAP STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="width: 7%; text-align: right; font-size: 7pt">1,015,745</TD><TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt"><SUP>(4)</SUP></TD><TD NOWRAP STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="width: 7%; text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt"><SUP>(10)</SUP></TD><TD NOWRAP STYLE="width: 1%; font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="width: 7%; text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="width: 1%; text-align: left; font-size: 7pt"><SUP>(10)</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD NOWRAP STYLE="font-size: 7pt"></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; font-size: 7pt">Stock</TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD NOWRAP STYLE="font-size: 7pt"></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; font-size: 7pt">Stock Options</TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(2)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(3),(9)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(3)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(3),(9)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(8)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(5)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(6)</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD NOWRAP STYLE="font-size: 7pt"></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; font-size: 7pt">Restricted Stock <SUP>(11)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt"><SUP>&nbsp;</SUP></TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204); font-size: 7pt">
    <TD NOWRAP STYLE="font-size: 7pt"></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; font-size: 7pt">Benefits</TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(7),(4)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(7)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(7),(4)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>(7),(4)</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">0</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 7pt">
    <TD NOWRAP STYLE="font-size: 7pt"></TD><TD NOWRAP STYLE="font-style: italic; font-size: 7pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-left: 0; font-size: 7pt"><I>Total</I></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">1,082,776</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">1,082,776</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">1,082,776</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-size: 7pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; font-size: 7pt">$</TD><TD NOWRAP STYLE="text-align: right; font-size: 7pt">67,031</TD><TD NOWRAP STYLE="text-align: left; font-size: 7pt"><SUP>&nbsp;</SUP></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">(1)</TD>
    <TD>This termination event includes a material change in duties or material reduction in remuneration of such named executive.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(2)</TD>
    <TD>The options granted on April 5, 2005 (including those effective as of December 13, 2004) survive termination of the named executive&rsquo;s employment. Other options granted to the named executive pursuant to the 2001 Plan and any options granted pursuant to the 2006 Plan would terminate immediately - and shares underlying such options forfeited - upon the named executive&rsquo;s termination for cause.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(3)</TD>
    <TD>The 2001 and 2006 Plans permit a named executive who voluntarily terminates employment with Generex or whose employment is terminated without cause to exercise vested options outstanding at the date of termination for a period of up to 90 days thereafter or the expiration date of the option, whichever is earlier.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(4)</TD>
    <TD>Pursuant to his employment arrangement, if Generex terminates Mr. Fletcher&rsquo;s employment upon written notice (and not for cause, disability or death) or Mr. Fletcher gives notice of termination pursuant to a material change in duties, reduction of remuneration, material default or breach by Generex or change in control of Generex, Mr. Fletcher will be entitled to receive a lump sum severance payment on the termination date in an amount equal to 18 months of base salary plus the average annual bonus paid to him during each fiscal year of the term of his employment and he will be entitled to participate in and receive benefits for 18 months after the termination date.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(5)</TD>
    <TD>The 2001 and 2006 Plans permit a named executive to exercise vested options outstanding at the time of the named executive&rsquo;s cessation of employment due to disability for a period of up to one year thereafter or the expiration of the option, whichever is earlier.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(6)</TD>
    <TD>The 2001 and 2006 Plans permit a named executive&rsquo;s beneficiary to exercise vested options outstanding at the time of the named executive&rsquo;s death for a period of up to one year after death or the expiration date of the option, whichever is earlier.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(7)</TD>
    <TD>The named executive would be entitled to receive health benefits for a period of 18 months after termination of employment. Since these benefits are widely available to salaried employees of Generex, they are excluded from the table above. The total aggregate value of these benefits in each case is below $8,000.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(8)</TD>
    <TD>Upon a change of control, the 2001 and 2006 Plans provide for the acceleration of exercisability and vesting of any outstanding options and removal of all restrictions and conditions on outstanding restricted stock awards, unless otherwise determined by the Board of Directors or its designee. We have assumed for purposes of this column that the named executive will exercise all of his/her fully exercisable and vested options and will receive all shares underlying restricted stock awards in connection with a change of control of Generex, which we have assumed occurred on July 31, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(9)</TD>
    <TD>Pursuant to the terms of his employment with Generex, if Generex terminates Mr. Fletcher&rsquo;s employment upon written notice (and not for cause, disability or death) or Mr. Fletcher gives notice of termination pursuant to a material change in duties, reduction of remuneration, material default or breach by Generex or change in control of Generex, Mr. Fletcher will have 90 days after the eighteenth month anniversary of the termination date to exercise vested options.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(10)</TD>
    <TD>Each named executive is entitled to receive monthly disability payments and his/her survivor(s) are entitled to receive a lump sum payment upon such named executive&rsquo;s death, in either case up to an amount equal to his/her annual base salary or $100,000, whichever is less. Insurance premiums are paid by Generex and such insurance coverage is widely available to all salaried employees at Generex. Thus, the amounts payable upon the disability or death of the named executive (as well as the premiums paid by Generex) are excluded from the table above.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(11)</TD>
    <TD>The restricted stock award agreement with the named executive officers provides that in the event the named executive ceases to be employed by, or provide service to, us, any unvested shares of restricted stock will be immediately forfeited.&nbsp; There was no unvested restricted stock as of July 31, 2011.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Non-Employee Directors' Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In fiscal 2011, our policy for compensation of non-employee
directors was as follows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; font-family: Symbol">&nbsp;</TD>
    <TD STYLE="width: 6%; font-family: Symbol">&nbsp;&middot;</TD>
    <TD STYLE="width: 89%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Non-employee directors (other than the non-executive chairman
        of the board) receive an annual cash based retainer. Each non-employee director serving on the Board of Directors as of May 27,
        2008 is entitled to an annual cash retainer of $40,000. Each new non-employee director will initially receive a cash retainer of
        $20,000, increasing to $30,000 for the second year, and $40,000 thereafter.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Symbol">&nbsp;</TD>
    <TD STYLE="font-family: Symbol">&nbsp;&middot;</TD>
    <TD>The non-executive chairman of the board receives an annual cash based retainer of $100,000 per year.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; font-family: Symbol">&nbsp;</TD>
    <TD STYLE="width: 6%; font-family: Symbol">&nbsp;&middot;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; width: 89%">At the discretion of the full Board of Directors, nonemployee directors may receive stock options to purchase shares of our common stock or shares of restricted stock each fiscal year. The number and terms of such options or shares is within the discretion of the full Board of Directors.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; font-family: Symbol">&nbsp;</TD>
    <TD STYLE="width: 6%; font-family: Symbol">&nbsp;&middot;</TD>
    <TD STYLE="width: 89%">Non-employee directors serving on committees of the Board of Directors receive additional cash compensation as follows:</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; font-style: italic">Committee</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: center">Chairperson</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; font-style: italic; text-align: center">Member</TD><TD NOWRAP STYLE="font-weight: bold; font-style: italic">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 76%; text-align: left">Audit Committee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">15,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Compensation Committee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">15,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Governance &amp; Nominating Committee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 8, 2011, the board amended the policy regarding the
cash-based retainer for non-employee directors such that all non-employee directors will receive an annual retainer of $40,000
effective in the first year they are appointed and in subsequent years of service, effective as of that date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Directors who are officers or employees of Generex or its subsidiaries
do not receive separate consideration for their service on the Board of Directors. The compensation received by Mr. Fletcher as
an employee of Generex is show in the Summary Compensation Table above. The compensation received by Mr. von Hofe as an employee
of our subsidiary Antigen is shown in the Director Compensation Table below under &ldquo;All Other Compensation&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fiscal Year 2011 Director Compensation
Table </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fees<BR> Earned<BR> or&nbsp;Paid<BR> in&nbsp;Cash<BR> (1)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock <BR>Awards&nbsp;<BR> (2)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option<BR> Awards<BR> (3)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">All&nbsp;Other<BR> Compensation</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"><SUP>&nbsp;</SUP></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 40%; text-align: left">John P. Barratt</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">93,666</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">104,850</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left"><SUP>&nbsp;</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">198,516</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Brian T. McGee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">62,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">41,940</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">103,940</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Nola E. Masterson</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">55,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">41,940</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">96,940</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">James H. Anderson</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">40,000</TD><TD STYLE="text-align: left"><SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">48,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Eric von Hofe</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">41,940</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">260,480</TD><TD STYLE="text-align: left"><SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">302,420</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1) Includes the annual retainer and additional fees for directors
who chair a Board committee or who serve on a Board committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2)&#9;There were no restricted stock awards to directors in
fiscal year 2011. As of July 31, 2011, the aggregate number of shares underlying stock awards previously granted to each non-employee
director was as follows: Mr. Barratt (150,000), Ms. Masterson (100,000) and Mr. McGee (150,000).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3) Includes the grant date fair value for options to purchase
200,000 shares of common stock granted to each of Mr. McGee, Ms. Masterson and Dr. von Hofe and options to purchase 500,000 shares
of common stock granted to Mr. Barratt on March 25, 2011, calculated in accordance with FASB ASC Topic 718. The grant date fair
value for these options is based on the Black-Scholes model valuation of $0.2097 per share. The following assumptions were used
in the calculation: expected term of 5 years; a risk-free interest rate of 0.013%; and expected price volatility of 101%. The options
granted on March 25, 2011 vested immediately on the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At fiscal year end, the total number of stock options held by
each non-employee director was as follows: Mr. Barratt (805,714), Mr. McGee (505,714), Ms. Masterson (300,000) and Dr. Anderson
(0). Dr. von Hofe, who is an employee of our subsidiary Antigen held, 435,000 at fiscal year-end.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4) Includes payments received as a member of the Scientific
Advisory Board of $5,000 per month for the period from December 2010 through July 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(5) Represents employment income earned as president of Antigen
for the fiscal year ended July 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<FONT STYLE="font-size: 10pt"><B>CERTAIN
TRANSACTIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Changes in Control</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We know of no arrangements, including any pledge by any person
of our securities, the operation of which may at a subsequent date result in the change in control of Generex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Related Transactions</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Review of Related Party Transactions</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We presently follow an unwritten practice requiring approval
by stockholders or by a majority of disinterested directors of transactions in which one of our directors has a material interest
apart from such director's interest in Generex. We also presently follow a practice requiring the approval by the Audit Committee
for any transactions in which a director or an executive officer has a material interest apart from such director's or officer&rsquo;s
interest in Generex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Related Transactions </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On December 9, 2005, our Board of Directors approved the grant
to Ms. Perri of a right of first refusal in respect of any sale, transfer, assignment or other disposition of either or both real
properties municipally known as 1740 Sismet Road, Mississauga, Ontario and 98 Stafford Drive, Brampton, Ontario (collectively,
the &ldquo;Properties&rdquo;). We granted Ms. Perri this right in recognition of the fair market value transfer to us during the
fiscal year ended July 31, 1998 by Ms. Perri (or parties related to her) of the Properties. In June 2011, we listed these real
properties for sale and received third party offers for such properties which we accepted conditionally based on Ms. Perri&rsquo;s
existing right of first refusal. Ms. Perri exercised her right of first refusal and the sale of these real properties to Ms. Perri
closed on August 26, 2011 on the same terms as the original third party offer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Through April 20, 2011, we used a management company to manage
all of our real properties. The property management company is owned by Rose Perri, Anna Gluskin and the estate of Mark Perri.
Ms. Perri and Ms. Gluskin are former executive officers of Generex. In the nine-month period ended April 30, 2011 and the fiscal
years ended July 31, 2010 and July 31, 2009, we paid the management company $40,778, $55,691 and $47,981, respectively, in management
fees. We believe that the amounts paid to the management company approximate the rates that would be charged by a non-affiliated
property management company. On April 20, 2011, we formally terminated the relationship, and no further property management fees
will be paid to this company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the period from June 2005 to November 2010, Generex paid
Time Release Corp. an aggregate amount of approximately $1,030,000. During the period from 2006 to 2008, Time Release, at the direction
of Ms. Perri, made payments of at least $285,000 of the funds received from Generex to Angara Investments Limited and directed
certain additional payments to Golden Bull Estates Ltd. Angara Investments is believed to be owned and controlled by Ms. Perri
and Ms. Gluskin, former executive officers and directors of Generex. Golden Bull Estates is controlled by Ms. Perri. The payments
to Time Release were discovered following the termination of Ms. Perri and were not approved by the Board of Directors of Generex,
or any committee thereof, at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the period from September 2006 through February 2010,
Generex made payments in excess of $700,000 to an Ecuadorian corporation, MediExpress S.A., at the direction of Ms. Perri. Generex
also paid approximately $385,000 to the principal of MediExpress during the period from August 2004 to December 2010 at the direction
of Ms. Perri. We are aware that Ms. Perri had other business relationships with Medi-Express&rsquo; principal, and we have not
been able to determine what business purpose of Generex was served by these payments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Special Committee of independent members of the Board of
Directors retained outside counsel to investigate the foregoing payments.&nbsp;&nbsp;Based on the foregoing payments and other
actions of Ms. Perri discovered following her termination, Generex has filed a counterclaim to litigation commenced by Ms. Perri
against Generex.&nbsp;&nbsp;See the discussion under the caption &ldquo;Management&rsquo;s Discussion and Analysis of Financial
Condition and Results of Operations&rdquo; under the heading &ldquo;Legal Proceedings&rdquo; and the subheading &ldquo;Dispute
with Former Officer&rdquo; in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Security
Ownership of Certain Beneficial Owners and Management</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The table on the following pages sets forth information regarding
the beneficial ownership of the common stock by our directors and named executive officers (including persons who served as principal
executive officer and principal financial officer during a portion of the fiscal year ended July&nbsp;31,&nbsp;2011) and all the
named executives and directors as a group. We are not aware of any person or group that beneficially owns more than five percent
of our outstanding shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information contained in this table is as of September 6,
2012. At that date, we had 362,799,785&nbsp;shares of common stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A person is deemed to be a beneficial owner of shares if he
has the power to vote or dispose of the shares. This power can be exclusive or shared, direct or indirect. In addition, a person
is considered by SEC rules to beneficially own shares underlying options or warrants that are presently exercisable or that will
become exercisable within sixty (60) days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Except as otherwise indicated, the address of each person named
in the table below is c/o Generex Biotechnology Corporation, 555 Richmond Street West, Suite 604, Toronto, Canada M5V 3B1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Beneficial Ownership </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name&nbsp;of&nbsp;Beneficial&nbsp;Owner</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number&nbsp;of<BR> Shares</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Percent<BR> of<BR> Class</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: left">Named Executives, Directors and Nominees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 76%; text-align: left">John P. Barratt (1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,943,746</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;*</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Mark Fletcher (2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,263,998</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.2</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Anna E. Gluskin (3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,179,794</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Nola Masterson (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">858,197</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Brian T. McGee (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,263,911</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Rose C. Perri (6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,690,554</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.3</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Dr. James Anderson (7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">409,836</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Eric von Hofe, Ph.D. (8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,021,292</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Dr. David Brusegard (9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">777,743</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stephen Fellows (10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">476,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left">Named Executives and Directors as a group (10 persons)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,885,321</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.7</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 100%; font-size: 10pt">* Less than 1%.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1)&#9;Includes 70,000 shares, 70,000 shares issuable upon stock
options granted on October 26, 2004, 100,000 shares issuable upon exercise of stock options granted on April 5, 2005 under the
2001 Plan, 35,714 shares issuable upon exercise of stock options granted on April 5, 2005 under the 2001 Plan received in lieu
of cash compensation, 100,000 options which were granted on March 8, 2010 under 2006 Plan and 150,000 shares of restricted stock
awarded on May 30, 2006 under the 2006 Plan.&nbsp;Also includes 400,000 options issued March 25, 2011 under the 2001 Stock Option
Plan and 100,000 options issued March 25, 2011 under the 2006 Stock Option Plan and 918,033 options issued June 21, 2012 under
the 2006 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2)&#9;Includes 286,077 shares, 250,000 shares issuable upon
exercise of stock options granted on April 5, 2005 with an effective date of December 13, 2004 under the 2001 Plan, 470,726 shares
issuable upon exercise of stock options granted on April 5, 2005 under the 2001 Plan, 300,000 options which were granted on March
8, 2010 under 2006 Plan and 175,000 shares of restricted stock granted in August 2007 under the 2006 Stock Plan, which shares were
vested as of August 17, 2009. Also includes 400,000 options issued March 25, 2011 under the 2001 Stock Option Plan and 1,100,000
options issued March 25, 2011 under the 2006 Stock Option Plan and 1,457,195 options issued June 21, 2012 under the 2006 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3)&#9;Includes 26,127 shares held by Ms. Gluskin, 953,667 shares
owned of record by GHI, Inc. that are beneficially owned by Ms. Gluskin, 200,000 shares of restricted stock granted in August 2007
under the 2006 Stock Plan, which shares were vested as of August 17, 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4)&#9;Includes 100,000 options which were granted on March
8, 2010 under 2006 Plan, 50,000 shares of restricted common stock granted to Ms. Masterson on August 17, 2007 under the 2006 Plan
and 200,000 options issued March 25, 2011 under the 2001 Stock Option Plan and 508,197 options issued June 21, 2012 under the 2006
Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(5)&#9;Includes 70,000 shares issuable upon exercise of stock
options granted on October 26, 2004, 100,000 shares issuable upon exercise of stock options granted on April 5, 2005 under the
2001 Plan, 35,714 shares issuable upon exercise of stock options granted on April 5, 2005 under the 2001 Plan received in lieu
of cash compensation, 100,000 options which were granted on March 8, 2010 under the 2006 Plan and 150,000 shares of restricted
stock awarded on May 30, 2006 under the 2006 Plan. Also includes 100,000 shares acquired in February and March 2006 and 200,000
options issued March 25, 2011 under the 2001 Stock Option Plan and 508,197 options issued June 21, 2012 under the 2006 Plan.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(6)&#9;Includes 238,726 shares held by Ms. Perri, 953,667 shares
owned of record by GHI, Inc. that are beneficially owned by Ms. Perri, 576,752 shares issued upon exercise of stock options granted
on April 5, 2005 under the 2001 Plan, 175,000 shares of restricted stock granted in August 2007 under 2006 Stock Plan that were
vested as of August 17, 2009. Also includes the shares that are owned by the estate of Mr. Mark Perri, of which Ms. Perri is executor
and beneficiary, but is not considered to beneficially own for some purposes: 45,914 shares previously owned of record by Mr. Mark
Perri; 1,100,000 shares owned of record by EBI, Inc. (of which Mr. Mark Perri was beneficial owner); 305,332 shares held of record
by brokerage accounts. Also includes 341,496 shares owned of record by EBI, Inc., which Ms. Perri may be deemed to beneficially
own because of the power to vote the shares but which are beneficially owned by other stockholders because they are entitled to
the economic benefits of the shares. Ms. Perri is also deemed to beneficially own an additional 953,667 shares owned of record
by GHI, Inc. by holding the right to vote such shares. These shares are also beneficially owned by Ms. Gluskin.<B><I> </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(7)&#9;Includes 409,836 options issued June 21, 2012 under the
2006 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(8) Includes 10,000 shares of common stock held by Dr. von Hofe
awarded on March 5, 2007 under the 2006 Plan. Also includes 100,000 shares issuable upon exercise of stock options granted on October
26, 2004, 35,000 shares issuable upon exercise of stock options granted on July 29, 2005, 50,000 vested options of 100,000 options
which were granted on October 10, 2009 under the 2006 Plan and 200,000 options issued March 25, 2011 under the 2001 Stock Option
Plan and 626,292 options issued June 21, 2012 under the 2006 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(9)&#9; Includes 31,295 shares of common stock held by Dr. Brusegard
and 200,000 options issued March 25, 2011 under the 2001 Stock Option Plan and 546,448 options issued June 21, 2012 under the 2006
Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(10)&#9;Includes 250,000 options which were granted on March
8, 2010 under the 2006 Plan, 26,250 vested options of 35,000 options which were granted on October 10, 2009 under the 2006 Plan
and 200,000 options issued March 25, 2011 under the 2001 Stock Option Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DESCRIPTION OF SECURITIES TO BE REGISTERED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are registering shares of our common
stock hereunder which are issued and outstanding, issuable upon conversion of the Series C 9% Convertible Preferred Stock, issuable
upon exercise of warrants issued in connection with the Series C 9% Convertible Preferred Stock, and issuable in lieu of cash payments
on the Series C 9% Convertible Preferred Stock. Therefore, we have provided below a description of our common stock, Series C 9%
Convertible Preferred Stock and related warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Our Capital Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Set forth below is a summary of the material
terms of our capital stock. This summary is not complete. We encourage you to read our Restated Certificate of Incorporation, as
amended, and our Amended and Restated By-Laws that we have previously filed with the SEC. See &ldquo;Where You Can Find More Information.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>General</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Our authorized capital stock consists of:
(i) 750,000,000 shares of common stock, par value $.001 per share, of which 362,799,785 shares were outstanding as of September
6, 2012, (ii) 5,500 shares of Series A 9% Convertible Preferred Stock, of which 0 shares were outstanding as of September 6, 2012
(iii) 2,000 shares of Series B 9% Convertible Preferred Stock, of which 1,172 shares were outstanding as of September 6, 2012 (iv)
750 shares of Series C 9% Convertible Preferred Stock, of which 750 shares were outstanding as of September 6, 2012and (vi) 991,750
shares of undesignated preferred stock, par value $.001 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Common Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Holders of common stock are entitled to
one vote for each share owned as of record on all matters on which shareholders may vote.&nbsp;&nbsp;Holders of common stock do
not have cumulative voting rights in the election of directors.&nbsp;&nbsp;Therefore, the holders of more than 50% of the outstanding
shares can elect the entire Board of Directors.&nbsp;&nbsp;The holders of common stock are entitled, upon liquidation or dissolution
of the Company, to receive pro rata all remaining assets available for distribution to stockholders after payment to any preferred
shareholders who may have preferential rights.&nbsp;&nbsp;The common stock has no preemptive or other subscription rights, and
there are no conversion rights or redemption provisions. All outstanding shares of common stock are validly issued, fully paid,
and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Series C Preferred Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Series C convertible preferred stock is convertible at the
option of the holder at any time into shares of common stock at a conversion ratio determined by dividing the stated value of the
Series C convertible preferred stock, or $1,000, by a conversion price of $0.15 per share. As of September 1, 2012, an aggregate
of 9,375,000 shares of our common stock are issuable upon conversion of the Series C convertible preferred stock. The conversion
price of the Series C convertible preferred stock will be subject to adjustment in the case of stock splits, stock dividends, combinations
of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The conversion price
will also be adjusted if we sell or grant any shares of common stock or securities convertible into, or rights to acquire, common
stock at an effective price per share that is lower than the then conversion price, except in the event of certain exempt issuances.
Subject to limited exceptions, a holder of the Series C convertible preferred stock will not have the right to convert any portion
of its Series C convertible preferred stock if the holder, together with its affiliates, would beneficially own in excess of 4.99%
of the number of shares of our common stock outstanding immediately after giving effect to its conversion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, the holders of Series C convertible preferred stock
will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata to the
holders of our common stock to the same extent as if such holders had converted all of their shares of Series C convertible preferred
stock. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar
reorganizations or recapitalizations, the holders of Series C convertible preferred stock will be entitled to receive, upon conversion
of their shares, any securities or other consideration received by the holders of our common stock pursuant to the fundamental
transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may become obligated to redeem the Series C convertible preferred
stock in cash upon the occurrence of certain triggering events, including the failure to provide an effective registration statement
covering shares of common stock issuable upon conversion of the Series C convertible preferred stock, material breach of certain
contractual obligations to the holders of the Series C convertible preferred stock, the occurrence of a change in control of the
Company, the occurrence of certain insolvency events relating to the Company, or the failure of our common stock to continue to
be listed or quoted for trading on one or more specified United States securities exchanges or regulated quotation service. Upon
the occurrence of certain triggering events, each holder of Series C convertible preferred stock will have the option to redeem
such holder&rsquo;s shares of Series C convertible preferred stock for a redemption price payable in shares of common stock or
receive an increased dividend rate of 18% on all of such holder&rsquo;s outstanding Series C convertible preferred stock. Late
fees will apply on all redemption amounts not paid within five trading days of the payment date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Series C convertible preferred stock will accrue a 9% dividend
until August 10, 2015 and, beginning on August 10, 2015 and on each one year anniversary thereafter, such dividend rate will increase
by an additional 3%. The dividend will be payable quarterly on September 30, December 31, March 31 and June 30, beginning on the
first such date after the original issue date and on each conversion date in cash, or at our option, in shares of common stock.
In the event that the Series C convertible preferred stock is converted prior to August 10, 2015, we will pay the holder of the
converted Series C convertible preferred stock an amount equal to $270 per $1,000 of stated value of the Series C convertible preferred
stock, less the amount of all prior quarterly dividends paid on such converted Series C convertible preferred stock before the
relevant conversion date. Such &ldquo;make-whole payment&rdquo; may be made in cash or, at our option, in shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Except as required by law, holders of the Series C convertible
preferred stock are not entitled to voting rights, except that the affirmative vote of the holders of a majority of the outstanding
shares of Series C convertible preferred stock is required to take certain actions that may adversely affect the rights or preferences
of the holders of Series C convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The securities purchase agreement and the certificate of designation
authorizing the Series C convertible preferred stock include certain agreements and covenants for the benefit of the holders of
the Series C convertible preferred stock, including restrictions on our ability to amend our certificate of incorporation and bylaws,
pay cash dividends or distributions with respect to our common stock or other junior securities, repurchase more than a <U>de</U>
<U>minimis</U> number of shares of our common stock or other junior, securities, issue additional equity securities for a period
of 60 days after the initial closing, issue additional debt or equity securities with variable a conversion or exercise price for
a period of 12 months after the initial closing, and undertake a reverse or forward stock split or reclassification of our common
stock (unless such reverse split is made in conjunction with the listing of the common stock on a national securities exchange),
and a requirement to use our reasonable best efforts to maintain the listing or trading of our common stock on one or more specified
United States securities exchanges or regulated quotation service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Undesignated Preferred Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Our Board of Directors has the authority
to issue up to 992,500 shares of preferred stock in one or more series and fix the number of shares constituting any such series,
the voting powers, designations, preferences and relative, participating, optional or other special rights and qualifications,
limitations or restrictions thereof, including the dividend rights, dividend rate, terms of redemption (including sinking fund
provisions), redemption price or prices, conversion rights and liquidation preferences of the shares constituting any series, without
any further vote or action by the stockholders. For example, the Board of Directors is authorized to issue a series of preferred
stock that would have the right to vote, separately or with any other series of preferred stock, on any proposed amendment to our
Restated Certificate of Incorporation, as amended, or on any other proposed corporate action, including business combinations and
other transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The terms of any particular series of preferred
stock will be described in the prospectus supplement relating to the offering of shares of that particular series of preferred
and may include, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>the title and stated value;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>the number of shares authorized;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>the liquidation preference per share;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>the purchase price;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>the dividend rate, period and payment date, and method of calculation (including whether cumulative or non-cumulative);</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>terms and amount of any sinking fund;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>provisions for redemption or repurchase, if applicable, and any restrictions on the ability of the company to exercise such redemption and repurchase rights;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>conversion rights and rates, if applicable, including the conversion price and how and when it will be calculated and adjusted;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>voting rights, if any;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>preemptive rights, if any;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>restrictions on sale, transfer and assignment, if any;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>the relative ranking and preferences of the preferred stock; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>any other specific terms, rights or limitations of, or restrictions on, such preferred stock.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">An aggregate of 9,375,000 shares of our common stock are issuable
upon exercise of the warrants issued on August 10, 2012 in connection with the issuance of the Series C convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to certain ownership limitations, the warrants will
be exercisable at any time after their date of issuance and on or before the fifth-year anniversary thereafter at an exercise price
of $0.08 per share of common stock. The exercise price of the warrants and, in some cases, the number of shares issuable upon exercise,
are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The exercise price and number of shares of common stock issuable upon
exercise will also be adjusted if we sell or grant any shares of common stock or securities convertible into, or rights to acquire,
common stock at an effective price per share that is lower than the then exercise price, except in the event of certain exempt
issuances. In addition, the warrant holders will be entitled to receive any securities or rights to acquire securities or property
granted or issued by us pro rata to the holders of our common stock to the same extent as if such holders had exercised all of
their warrants. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and
similar reorganizations or recapitalizations, the warrant holders will be entitled to receive, upon exercise of their warrants,
any securities or other consideration received by the holders of common stock pursuant to the fundamental transaction. Any successor
to us or surviving entity shall assume the obligations under the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The warrant holders must surrender payment in cash of the aggregate
exercise price of the shares being acquired upon exercise of the warrants. If at any time after the six month anniversary of the
initial exercise date (August 10, 2012), there is no effective registration statement registering, or no current prospectus available
for the resale of the shares issuable upon exercise of the warrants, then the warrants may only be exercised on a &ldquo;net&rdquo;
or &ldquo;cashless&rdquo; basis. No fractional shares of common stock will be issued in connection with the exercise of a warrant.
In lieu of fractional shares, we will pay the holder an amount in cash equal to the fractional amount multiplied by the exercise
price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Anti-Takeover Provisions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">We are not aware of any pending takeover
attempt or interest in making such an attempt. Our Restated Certificate of Incorporation, as amended, and Amended and Restated
Bylaws contain certain provisions which may be deemed to be &quot;anti-takeover&quot; in that they may deter, discourage or make
more difficult the assumption of control of Generex by another corporation or person through a tender offer, merger, proxy contest
or similar transaction or series of transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><I>Authorized but Unissued Shares:</I>
The authorized but unissued shares of our common stock and preferred stock are available for future issuance without stockholder
approval. The Board of Directors may set the rights, preferences and terms of new preferred stock, without shareholder approval.
Shares of preferred stock could be issued quickly without shareholder approval, with terms calculated to delay or prevent a change
in control of Generex. Our stockholders do not have preemptive rights with respect to the purchase of these shares. Therefore,
such issuance could result in a dilution of voting rights and book value per share of the common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><I>Advance Notice Requirements for Stockholder
Proposals and Director Nominations:</I> Our Amended and Restated Bylaws provide that a stockholder seeking to bring business before
an annual meeting of stockholders, or to nominate candidates for election as directors, must provide timely notice of such stockholder&rsquo;s
intention in writing. To be timely, a stockholder&rsquo;s notice must be received not less than 60 days nor more than 90 days prior
to the meeting at which such proposal or candidate is to be considered. However, if we do not give prior notice or make public
disclosure of the date of the meeting at least 70 days prior to the meeting date, notice by the stockholder is considered timely
if it is received no later than the close of business on the 10th day following the day on which such notice was mailed or public
disclosure was made. If a stockholder desires to have a proposal included in Generex&rsquo;s proxy statement, notice of such proposal
must be received not less than 120 days prior to the first anniversary of the date of Generex&rsquo;s notice of the previous year&rsquo;s
annual meeting. These advance notice provisions may preclude stockholders from bringing matters before a meeting or from making
nominations for directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;<I>Special Meetings of Stockholders:</I>
Our Amended and Restated Bylaws provide that special meetings of stockholders may be called only by the Board of Directors, the
Chairman of the Board or the President, and may be called by the Board upon the request of the holders of a majority of the outstanding
shares of stock of the company entitled to vote at the meeting. Further, business transacted at any special meeting of stockholders
is limited to matters relating to the purpose or purposes stated in the notice of meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><I>General Effect of Anti-Takeover Provisions:</I>
The overall effect of these provisions may be to deter a future tender offer or other takeover attempt that some stockholders might
view to be in their best interests at that time. In addition, these provisions may have the effect of assisting our current management
in retaining its position and place it in a better position to resist changes which some stockholders may want to make if dissatisfied
with the conduct of our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Stockholder Rights Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">On May 30, 2006, our stockholders approved
the adoption of a stockholder rights plan that will allow our Board of Directors to declare a dividend of one share purchase right
for each outstanding share of our common stock. Our Board of Directors has considered adoption of this plan but has not yet approved
its adoption. We expect that any stockholder rights plan adopted by our Board will contain terms substantially as described below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The terms of the rights plan will provide
for a dividend distribution of one preferred share purchase right, which we refer to as a &ldquo;Right,&rdquo; for each outstanding
share of our common stock. The dividend will be payable on a date established by the Board to the stockholders of record on that
date. Each Right will entitle the registered holder to purchase from Generex one one-hundredth of a share of preferred stock (each
a &ldquo;Preferred Share&rdquo; and, collectively, the &ldquo;Preferred Shares&rdquo;) at a price of $.01 per one one-hundredth
of a share of preferred stock, subject to certain adjustments. Each Preferred Share will have designations and powers, preferences
and rights, and the qualifications, limitations and restrictions which make its value approximately equal to the value of one share
of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Rights will not be exercisable until
the earlier to occur of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD><FONT STYLE="font-size: 10pt">the date of a public announcement that a person, entity or group of affiliated or associated
persons have acquired beneficial ownership of 20% or more of our outstanding shares of common stock, which we refer to as an &quot;Acquiring
Person&quot;, or</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(ii)</TD><TD>10 business days (or such later date as may be determined by action of the Board of Directors prior to such time as any person
or entity becomes an Acquiring Person) following the commencement of, or announcement of an intention to commence, a tender offer
or exchange offer the consummation of which would result in any person or entity becoming an Acquiring Person (the earlier of such
dates being called the &quot;Distribution Date&quot;).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Until the Distribution Date, the Rights
will be transferable with and only with shares of our common stock. The Rights will expire ten years after adoption of the stockholders
rights plan unless the Rights are earlier redeemed or exchanged by Generex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Preferred Shares purchasable upon exercise
of the Rights will not be redeemable. Each Preferred Share will be entitled to a minimum preferential quarterly dividend payment
of $1.00 but will be entitled to an aggregate dividend of 100 times the dividend declared per share of common stock. In the event
of liquidation, the holders of the Preferred Shares would be entitled to a minimum preferential liquidation payment of $100 per
share, but would be entitled to receive an aggregate payment equal to 100 times the payment made per share of common stock. Each
Preferred Share will have 100 votes, voting together with the common stock. Finally, in the event of any merger, consolidation
or other transaction in which shares of common stock are exchanged, each Preferred Share will be entitled to receive 100 times
the amount of consideration received per share of common stock. These rights will be protected by customary anti-dilution provisions.
Because of the nature of the Preferred Shares' dividend and liquidation rights, the value of one one-hundredth of a Preferred Share
should approximate the value of one share of common stock. The Preferred Shares would rank junior to any other series of our preferred
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In the event that any person or group of
affiliated or associated persons becomes an Acquiring Person, proper provision will be made so that each holder of a Right, other
than Rights beneficially owned by the Acquiring Person and its associates and affiliates (which will thereafter be void), will
for a 60-day period have the right to receive upon exercise that number of shares of Preferred Stock having a market value of two
times the exercise price of the Right (or, if such number of shares is not and cannot be authorized, Generex may issue Preferred
Shares, cash, debt, stock or a combination thereof in exchange for the Rights). This right will terminate 60 days after the date
on which the Rights become nonredeemable (as described below), unless there is an injunction or similar obstacle to exercise of
the Rights, in which event this right will terminate 60 days after the date on which the Rights again become exercisable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The rights plan will contain certain exceptions
to the characterization of a person or group as an &quot;Acquiring Person.&quot; That term shall not be deemed to include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%"></TD><TD STYLE="width: 4%"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD><TD STYLE="width: 94%"><FONT STYLE="font-size: 10pt">Generex,</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%"></TD><TD STYLE="width: 4%"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD><TD STYLE="width: 94%"><FONT STYLE="font-size: 10pt">a subsidiary of Generex,</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.55in; text-indent: -0.3in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%"></TD><TD STYLE="width: 4%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="width: 94%">any employee benefit or compensation plan of Generex,</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.55in; text-indent: -0.3in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%"></TD><TD STYLE="width: 4%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="width: 94%">any entity holding shares of common stock for or pursuant to the terms of any such employee benefit or compensation plan or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.55in; text-indent: -0.3in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5%"></TD><TD STYLE="width: 4%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="width: 94%">any officer, director or current 5% holder as of the date the rights plan is implemented.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The rights plan may also except certain
institutional shareholders from the definition of &ldquo;Acquiring Person.&rdquo; In addition, except under limited circumstances,
no person or entity shall become an Acquiring Person as the result of the acquisition of shares of common stock by Generex which,
by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such person or
entity to 20% or more of the shares of common stock then outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The stockholders rights plan may also contain
what is commonly known as a &ldquo;flip-over&rdquo; provision. In the event that Generex is acquired in a merger or other business
combination transaction or 50% or more of its consolidated assets or earning power are sold to an Acquiring Person, its associates
or affiliates or certain other persons in which such persons have an interest, the plan will require that proper provision be made
so that each holder of a Right will thereafter have the right to receive, upon the exercise thereof at the then current exercise
price of the Right, that number of shares of common stock of the acquiring company which at the time of such transaction will have
a market value of two times the exercise price of the Right.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">At any time after an Acquiring Person becomes
an Acquiring Person and prior to the acquisition by such Acquiring Person of 50% or more of the outstanding shares of Generex&rsquo;s
common stock, our Board of Directors may exchange the Rights (other than Rights owned by such person or group which have become
void), in whole or in part, at an exchange ratio of one share of common stock, or one one-hundredth of a Preferred Share, per Right
(or, at our election, Generex may issue cash, debt, stock or a combination thereof in exchange for the Rights), subject to adjustment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">At any time prior to the earliest of (i)
the day of the first public announcement that a person has become an Acquiring Person or (ii) the final expiration date of the
rights, our Board of Directors may redeem the Rights in whole, but not in part, at a price of $.001 per Right. Following the expiration
of the above periods, the Rights become nonredeemable. Immediately upon any redemption of the Rights, the right to exercise the
Rights will terminate and the only right of the holders of Rights will be to receive the redemption price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Rights would have certain anti-takeover
effects. The Rights would cause substantial dilution to a person or group that attempts to acquire Generex on terms not approved
by our Board of Directors. The Rights should not interfere with any merger or other business combination approved by our Board
of Directors since the Rights could be amended to permit such acquisition or redeemed by us at $.001 per Right prior to the earliest
of (i) the time that a person or group has acquired beneficial ownership of 20% or more of our shares of common stock or (ii) the
final expiration date of the rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Dividend Policy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Holders of our common stock are entitled
to receive such dividends as the Board of Directors may from time to time declare. The Board may declare dividends only when dividends
are legally available. Under the Delaware General Corporation Law, the Board may only declare dividends out of our capital surplus
(generally the amount of its paid-in capital above the par value of the outstanding stock) or out of net profits for the fiscal
year with respect to which the dividends are paid.&nbsp;&nbsp;We have never paid any dividends on our common stock and do not anticipate
paying dividends on the common stock in the foreseeable future. The Certificates of Designation pertaining to our Series B 9% Convertible
Preferred Stock and our Series C 9% Convertible Preferred Stock impose certain restrictions on our ability to pay dividends on
our common stock. For information about these restrictions, see the discussion under the caption &ldquo;Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations&rdquo; under the heading &ldquo;Financial Condition, Liquidity and
Resources&rdquo; and the subheadings &ldquo;Financing &ndash; February 2012&rdquo;and &ldquo;Financing &ndash; August 2012&rdquo;
in this prospectus. The dividends payable on our Series C 9% Convertible Preferred Stock are described under the caption &ldquo;Description
of Securities To Be Registered&rdquo; under the heading &ldquo;Description of Our Capital Stock&rdquo; and the &ldquo;Series C
Preferred Stock.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Transfer Agent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="color: black">Broadridge Corporate
Issuer Solutions, Inc. (formerly </FONT>StockTrans, Inc.), <FONT STYLE="color: black">1717 Arch St. Suite 1300 Philadelphia, PA&nbsp;
19103</FONT>, is the transfer agent and registrar for our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Quotation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Our common stock is quoted on the OTC Bulletin
Board under the symbol &quot;GNBT.OB.&quot;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">We are registering shares of common stock
that are issued and outstanding, issuable upon conversion of outstanding shares of our Series C convertible preferred stock, issuable
upon exercise of outstanding warrants issued in connection with such preferred stock, and issuable in lieu of cash payments of
dividends on such preferred stock. Our registration will permit the resale of these shares of common stock by the holders of our
common stock, Series C convertible preferred stock and warrants from time to time after the date of this prospectus. We will not
receive any of the proceeds from the sale by the Selling Security Holders of the shares of common stock. We will bear all fees
and expenses incident to our obligation to register the shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">The Selling Security Holders may sell all
or a portion of the shares of common stock beneficially owned by them and offered hereby from time to time directly or through
one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters or broker-dealers,
the Selling Security Holders will be responsible for underwriting discounts or commissions or agent&rsquo;s commissions. The shares
of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at
varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may
involve crosses or block transactions,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Symbol">&middot;</TD>
    <TD STYLE="font-size: 10pt">on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>in the over-the-counter market;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>in transactions otherwise than on these exchanges or systems or in the over-the-counter market;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>through the writing of options, whether such options are listed on an options exchange or otherwise;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>purchases by a broker-dealer as principal and resale by the broker-dealer for its account;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>an exchange distribution in accordance with the rules of the applicable exchange;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>privately negotiated transactions;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>short sales made after the date the Registration Statement is declared effective by the SEC, subject to any applicable limitations on short sales contained in any agreement between a selling shareholder and us;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>sales pursuant to Rule 144;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>broker-dealers may agree with the Selling Security Holders to sell a specified number of such shares at a stipulated price per share;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>a combination of any such methods of sale; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-family: Symbol">&middot;</TD>
    <TD>any other method permitted pursuant to applicable law.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">If the Selling Security Holders effect such
transactions by selling shares of common stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers
or agents may receive commissions in the form of discounts, concessions or commissions from the Selling Security Holders or commissions
from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal (which discounts,
concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types
of transactions involved). In connection with sales of the shares of common stock or otherwise, the Selling Security Holders may
enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of common stock in the
course of hedging in positions they assume. The Selling Security Holders may also sell shares of common stock short and deliver
shares of common stock covered by this prospectus to close out short positions and to return borrowed shares in connection with
such short sales. The Selling Security Holders may also loan or pledge shares of common stock to broker-dealers that in turn may
sell such shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">The Selling Security Holders may pledge or
grant a security interest in some or all of the shares of common stock owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time pursuant
to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act,
amending, if necessary, the list of Selling Security Holders to include the pledgee, transferee or other successors in interest
as Selling Security Holders under this prospectus. The Selling Security Holders also may transfer and donate the shares of common
stock in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">The Selling Security Holders and any broker-dealer
participating in the distribution of the shares of common stock may be deemed to be &ldquo;underwriters&rdquo; within the meaning
of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed
to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares of common
stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of shares of
common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts,
commissions and other terms constituting compensation from the Selling Security Holders and any discounts, commissions or concessions
allowed or reallowed or paid to broker-dealers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">Under the securities laws of some states,
the shares of common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some
states the shares of common stock may not be sold unless such shares have been registered or qualified for sale in such state or
an exemption from registration or qualification is available and is complied with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">There can be no assurance that any Selling
Security Holder will sell any or all of the shares of common stock registered pursuant to the shelf registration statement, of
which this prospectus forms a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">The Selling Security Holders and any other
person participating in such distribution will be subject to applicable provisions of the Exchange Act, and the rules and regulations
thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing
of purchases and sales of any of the shares of common stock by the selling shareholders and any other participating person. To
the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common
stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability
of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the
shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">We will pay all expenses of the registration
of the shares of common stock pursuant to the registration rights agreement, estimated to be $40,000 in total, including, without
limitation, SEC filing fees; <U>provided</U>, <U>however</U>, that a Selling Security Holder will pay all underwriting discounts
and selling commissions, if any. We will indemnify the Selling Security Holders against liabilities, including some liabilities
under the Securities Act, in accordance with the registration rights agreements, or the Selling Security Holders will be entitled
to contribution. We may be indemnified by the Selling Security Holders against civil liabilities, including liabilities under the
Securities Act, that may arise from any written information furnished to us by the Selling Security Holders specifically for use
in this prospectus, in accordance with the related registration rights agreements, or we may be entitled to contribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">Once sold under the registration statement,
of which this prospectus forms a part, the shares of common stock will be freely tradable under U.S. federal securities laws in
the hands of persons other than our affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The validity of the&nbsp;shares of common
stock&nbsp;offered by this prospectus will be passed upon for us by Eckert Seamans Cherin &amp; Mellott, LLC, Two Liberty Place,
50 South 16th Street, 22nd Floor, Philadelphia, PA 19102.&nbsp;&nbsp;Certain members of the firm of Eckert Seamans Cherin &amp;
Mellott, LLC own additional shares (less than one percent in total) that they purchased from time to time for cash, either from
us or in the public market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The consolidated financial statements of
Generex Biotechnology Corporation for the years ended July&nbsp;31, 2010 and&nbsp;2011 have been so included in reliance on the
report (which contains an explanatory paragraph describing conditions that raise substantial doubt about Generex Biotechnology
Corporation&rsquo;s ability to continue as a going concern as described in Note [1] to such consolidated financial statements),
of MSCM LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WHERE YOU CAN FIND MORE INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have filed with the SEC a registration
statement on Form S-1 under the Securities Act with respect to the common stock offered hereby. This prospectus, which constitutes
part of the registration statement, does not contain all of the information set forth in the registration statement and the exhibits
and schedule thereto, certain parts of which are omitted in accordance with the rules and regulations of the SEC. For further information
regarding our common stock and our company, please review the registration statement, including exhibits, schedules and reports
filed as a part thereof. Statements in this prospectus as to the contents of any contract or other document filed as an exhibit
to the registration statement, set forth the material terms of such contract or other document but are not necessarily complete,
and in each instance reference is made to the copy of such document filed as an exhibit to the registration statement, each such
statement being qualified in all respects by such reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are also subject to the informational
requirements of the Exchange Act which requires us to file reports, proxy statements and other information with the SEC. Such reports,
proxy statements and other information along with the registration statement, including the exhibits and schedules thereto, may
be inspected at public reference facilities of the SEC at 100 F Street N.E., Washington D.C. 20549. Copies of such material can
be obtained from the Public Reference Section of the SEC at prescribed rates. You may call the SEC at 1-800-SEC-0330 for further
information on the operation of the public reference room. Because we file documents electronically with the SEC, you may also
obtain this information by visiting the SEC&rsquo;s Internet website at http://www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 90%">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; text-align: center; vertical-align: bottom">&nbsp; &nbsp;Page</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-decoration: underline">Financial Statements (Audited)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>Report of Independent Registered Public Accounting Firm</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;F-2</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Consolidated Balance Sheets</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">July 31, 2011 and 2010</P></TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;F-3</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Consolidated Statements of Operations</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the Years Ended July 31, 2011, 2010 and 2009</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">and Cumulative From November 2, 1995 (Date of Inception)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">to July 31, 2011</P></TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;F-4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Consolidated Statements of Changes in Stockholders&rsquo; (Deficiency)/Equity</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the Period November 2, 1995 (Date of Inception)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">to July 31, 2011</P></TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;F-5</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Consolidated Statements of Cash Flows</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the Years Ended July 31, 2011, 2010 and 2009</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">and Cumulative From November 2, 1995 (Date of Inception)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">to July 31, 2011</P></TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;F-21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp; &nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>Notes to Consolidated Financial Statements</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;&nbsp; F-22</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; font-weight: bold; text-decoration: underline">Financial Statements (unaudited)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">Consolidated Balance Sheets -</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">April 30, 2012 (unaudited) and July 31, 2011</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">F-42</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">Consolidated Statements of Operations &mdash; For the three and six-month</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">periods ended April 30, 2012 and 2011, and cumulative from</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">November 2, 1995 to April 30, 2012 (unaudited)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">F-43</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">Consolidated Statements of Cash Flows &mdash; For the six-month</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">periods ended April 30, 2012 and 2011, and cumulative from</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">November 2, 1995 to April 30, 2012 (unaudited)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">F-44</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top">Notes to Consolidated Financial Statements (unaudited)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">F-46</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="margin: 0"><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">To the Board of Directors
and Stockholders of</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Generex Biotechnology Corporation</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">(A Development Stage Company)</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">We have audited the accompanying
consolidated balance sheets of Generex Biotechnology Corporation (a Development Stage Company) (the &#8220;Company&#8221;) as of
July 31, 2011 and 2010 and the related consolidated statements of operations, stockholders&#8217; (deficiency)/equity and cash
flows for each of the years in the three year period ended July 31, 2011, and for the period November 2, 1995 (date of inception)
to July 31, 2011. These financial statements are the responsibility of the Company&#8217;s management. Our responsibility is to
express an opinion on these financial statements based on our audits.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">We conducted our audits in
accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.&#160;&#160;An
audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation.&#160;&#160;We believe that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">In our opinion, the consolidated
financial statements referred to above present fairly, in all material respects, the financial position of Generex Biotechnology
Corporation as of July 31, 2011 and 2010 and the results of its operations and its cash flows for each of the years in the three
year period ended July 31, 2011, and for the period November 2, 1995 (date of inception) to July 31, 2011 in conformity with accounting
principles generally accepted in the United States of America.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The accompanying consolidated
financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1, the Company&#8217;s
experience of negative cash flows from operations since inception and its dependency upon future financing raise substantial doubt
about its ability to continue as a going concern. Management&#8217;s plans regarding these matters are also described in Note 1.
The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">We also have audited, in
accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company&#8217;s internal control
over financial reporting as of July 31, 2011, based on criteria established in <I>Internal Control &#8211; Integrated Framework
</I>issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated October 14, 2011
expressed an unqualified opinion thereon.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">/s/ MSCM LLP</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">MSCM LLP</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Toronto, Canada</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">October 14, 2011</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>CONSOLIDATED BALANCE SHEETS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July&#160;31,&#160;2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July&#160;31,&#160;2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0pt">ASSETS</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Current Assets:</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 76%; padding-left: 9pt; text-indent: 0pt">Cash and cash equivalents</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">2,798,797</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">13,880,870</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Accounts receivable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,690</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70,585</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Inventory (see Note 7)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">717,442</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,911,883</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; padding-bottom: 2px; text-indent: 0pt">Other current assets</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">225,052</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">333,456</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Total Current Assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,749,981</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,196,794</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Property and Equipment, Net (see Note 3)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,271,867</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,341,408</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Assets Held for Investment, Net (see Note 4)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,634,929</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,503,110</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Patents, Net (see Note 5)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">3,349,588</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">3,533,688</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 27pt; text-indent: 0pt">TOTAL ASSETS</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">12,006,365</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">24,575,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0pt">LIABILITIES AND STOCKHOLDERS&#8217; (DEFICIENCY)/EQUITY</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Current Liabilities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Accounts payable and accrued expenses (see Note 8)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">7,738,179</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">6,554,714</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Deferred revenue</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">369,748</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">396,195</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Current maturities of long-term debt (see Note 11)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,210,271</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,141,861</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 9pt; text-indent: 0pt">Current maturities of obligations under capital lease</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">7,818</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Total Current Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,318,198</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,100,588</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Long-Term Debt, Net (see Note 11)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,869,795</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,824,071</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Derivative Warrant Liability (see Note 13)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,745,508</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,679,721</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Derivative Additional Investment Rights Liability (see Note 13)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">515,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 18pt; text-indent: 0pt">Total Liabilities</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">20,448,501</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">15,604,380</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Commitments and Contingencies (see Note 9)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Stockholders&#8217; (Deficiency)/Equity (see Notes 12 and 14):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Series A 9% Convertible Preferred Stock, $1,000 par value; authorized 5,500 and -0- shares at July 31, 2011 and 2010, respectively ; 1,287 and -0- shares issued and outstanding at July 31, 2011 and 2010, respectively</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Common stock, $.001 par value; authorized 750,000,000 shares at July 31, 2011 and 2010, respectively; 308,519,768 and 269,599,615 shares issued and outstanding at July 31, 2011 and 2010, respectively</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">308,520</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">269,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Additional paid-in capital</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">338,124,525</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">333,219,309</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Deficit accumulated during the development stage</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(347,744,756</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(325,302,472</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; padding-bottom: 2px; text-indent: 0pt">Accumulated other comprehensive income</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">869,575</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">784,183</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; padding-bottom: 2px; text-indent: 0pt">Total Stockholders&#8217; (Deficiency)/Equity</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(8,442,136</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">8,970,620</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; padding-bottom: 4px; text-indent: 0pt">TOTAL LIABILITIES AND STOCKHOLDERS&#8217; (DEFICIENCY)/EQUITY</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">12,006,365</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">24,575,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated
Financial Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>CONSOLIDATED STATEMENTS
OF OPERATIONS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Cumulative&#160;From</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">November&#160;2,&#160;1995</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="10" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">For&#160;the&#160;Years&#160;Ended&#160;July&#160;31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">(Date&#160;of&#160;Inception)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2009</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">to&#160;July&#160;31,&#160;2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 52%; text-indent: 0pt">Revenues, net</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">291,628</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">1,172,611</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">1,118,509</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">5,082,133</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Cost of Goods Sold</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">155,619</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">812,266</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">527,733</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,609,266</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Gross profit</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">136,009</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">360,345</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">590,776</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,472,867</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Operating Expenses:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Research and development</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,250,397</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,361,156</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,561,681</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">126,988,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Research and development - related party</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">220,218</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Selling and marketing</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,025,774</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,709,767</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,120,903</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,168,039</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">General and administrative</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,392,920</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,719,239</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,164,352</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">142,912,977</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 9pt; text-indent: 0pt">General and administrative - related party</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">314,328</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 18pt; text-indent: 0pt">Total Operating Expenses</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">24,669,091</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">29,790,162</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">26,846,936</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">279,604,290</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Operating Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(24,533,082</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(29,429,817</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(26,256,160</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(276,131,423</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Other Income (Expense):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Miscellaneous income (expense)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">489,292</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">686,303</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Income from rental operations, net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">349,458</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">206,575</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">320,547</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,128,041</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Interest income</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,455</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,045</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">237,977</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,780,374</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Interest expense</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(208,906</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(210,083</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(20,114,595</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(68,416,157</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: left; vertical-align: bottom; padding-left: 9pt; text-indent: 0pt">Change in fair value of derivative warrant liability</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">2,220,916</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">4,125,590</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">365,463</TD>
    <TD NOWRAP STYLE="vertical-align: text-top; text-align: left; text-indent: 0pt"><FONT STYLE="vertical-align: text-top">(1)</FONT></TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 9pt; text-indent: 0pt">Loss on extinguishment of debt</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(14,134,068</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net Loss Before Undernoted</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(21,675,867</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(25,279,940</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(45,812,228</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(347,721,467</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Minority Interest Share of Loss</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">3,038,185</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(21,675,867</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(25,279,940</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(45,812,228</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(344,683,282</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Preferred Stock Dividend</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">766,417</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">3,061,474</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Net Loss Available to Common Stockholders</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(22,442,284</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(25,279,940</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(45,812,228</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(347,744,756</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Basic and Diluted Net Loss Per Common Share (see Note 17)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(.08</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(.10</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(.32</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Weighted Average Number of Shares of Common Stock Outstanding - basic and diluted (Note 17)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">284,818,486</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">250,949,333</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">144,409,840</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-indent: -18pt; margin: 0 0 0 18pt; font: 10pt Times New Roman, Times, Serif">(1) - includes $5,981,403 as adjustment
related to the adoption of FASB ASC Topic 815 in "Cumulative from November 2, 1995 (Date of Inception) to July 31, 2011" column.
See Note 13 - Derivative Warrant Liability.</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 9pt; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated
Financial Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0"><B>&#160;</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance November 2, 1995 (Inception)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, February 1996, $.0254</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">321,429</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">321</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,838</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,159</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, February 1996, $.0510</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,142</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,757</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,792</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, February 1996, $.5099</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">216,428</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">216</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">110,142</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">110,358</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, March 1996, $10.2428</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,604</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,607</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, April 1996, $.0516</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">489,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">490</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,773</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,263</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, May 1996, $.0512</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">115,571</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">116</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,796</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,912</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, May 1996, $.5115</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">428,072</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">428</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">218,534</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">218,962</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, May 1996, $10.2302</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">129,818</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">130</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,327,934</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,328,064</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, July 1996, $.0051</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,606,528</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,606</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,777</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,383</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, July 1996, $.0255</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">142,857</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">143</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,494</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,637</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, July 1996, $.0513</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,714</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,797</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,833</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, July 1996, $10.1847</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,855</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">650,282</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">650,346</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Costs related to issuance of common stock</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(10,252</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(10,252</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Founders Shares transferred for services rendered</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">330,025</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">330,025</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(693,448</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(693,448</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(4,017</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(4,017</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 36pt; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(693,448</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(4,017</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(697,465</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance, July 31, 1996</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">4,587,764</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">4,588</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">2,708,501</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(693,448</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(4,017</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">2,015,624</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0"><BR>
</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 1996</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">4,587,764</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">4,588</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">2,708,501</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(693,448</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(4,017</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">2,015,624</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, September 1996, $.0509</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,143</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">107</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">109</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, December 1996, $10.2421</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,429</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,635</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,636</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, January 1997, $.0518</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,466</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">76</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, March 1997, $10.0833</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">121</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">121</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, May 1997, $.0512</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,233</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">213</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">217</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, May 1997, $.5060</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,285,714</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,286</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,164,127</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,168,413</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Costs related to issuance of common stock, May 1997</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(108,421</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(108,421</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, May 1997, $10.1194</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,214</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">184,297</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">184,315</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, June 1997, $.0504</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,714</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">529</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">540</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, June 1997, $.5047</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,143</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,190</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,222</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, June 1997, $8.9810</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,579</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">265,618</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">265,648</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, June 1997, $10.0978</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">714</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,209</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,210</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, July 1997, $10.1214</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,993</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">26</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">263,060</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">263,086</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Costs related to issuance of common stock</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(26,960</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(26,960</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Founders Shares transferred for services rendered</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,481</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,481</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,379,024</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,379,024</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">3,543</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">3,543</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 36pt; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(1,379,024</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">3,543</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(1,375,481</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance, July 31, 1997</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">9,000,118</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">9,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">5,512,782</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(2,072,472</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(474</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">3,448,836</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="margin: 0">The Notes to Consolidated Financial Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 1997</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">9,000,118</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">9,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">5,512,782</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(2,072,472</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(474</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">3,448,836</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, October 1997, $.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">234,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">234,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, December 1997, $0.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">234,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">234</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,698</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,932</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of SVR Preferred Stock in exchange for services rendered, January 1998, $.001</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">99</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Shares issued pursuant to the January 9, 1998 reverse merger between GBC-Delaware, Inc. and Generex Biotechnology Corporation</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,105,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,105</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,105</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash,&#160;&#160;March 1998, $2.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70,753</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">71</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">176,812</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">176,883</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash,&#160;&#160;April 1998, $2.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">149,940</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, April 1998, $2.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,172</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">95,392</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">95,430</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash,&#160;&#160;May 1998, $2.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">756,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">757</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,890,493</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,891,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, May 1998, $2.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">162,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">162</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">404,838</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">405,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, May 1998, $.60</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash,&#160;&#160;June 1998, $2.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">286,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">286</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">714,714</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">715,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, June 1998, $0.0667</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">234,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">234</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,374</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,608</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, June 1998, $2.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,729</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">61,799</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">61,823</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,663,604</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,663,604</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(198,959</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">(198,959</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 36pt; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(4,663,604</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(198,959</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(4,862,563</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)&#160;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance, July 31, 1998</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">11,971,272</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">11,971</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">9,565,836</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(6,736,076</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(199,433</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">2,642,299</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 1998</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">11,971,272</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">11,971</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">9,565,836</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(6,736,076</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(199,433</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">2,642,299</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash,&#160;&#160;August 1998, $3.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">299,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash,&#160;&#160;August 1998, $3.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,482</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68,168</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68,187</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Redemption of common stock for cash, September 1998, $7.75</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(15,357</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(15</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(119,051</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(119,066</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, September - October 1998, $3.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">220,297</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">220</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">660,671</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">660,891</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, August - October 1998, $4.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">210,818</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">211</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">864,142</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">864,353</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, August - October 1998, $2.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,439</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">53,577</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">53,598</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, August - October 1998, $4.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,065</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74,048</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74,066</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, September 1998, $4.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">180,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">180</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">737,820</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">738,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, October 1998, $.26</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,064</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,064</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of stock options in exchange for services rendered, November 1998, $1.85</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">92,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">92,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, November 1998, $1.64</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">246,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">246,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, November 1998 - January 1999, $3.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">180,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">180</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">629,820</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">630,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, November 1998 - January 1999, $4.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">275,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">275</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,099,725</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, November 1998 - January 1999, $4.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">96,852</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">97</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">397,003</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">397,100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, November 1998 - January 1999, $4.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">28,718</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">117,715</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">117,744</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, November 1998 - January 1999, $5.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">99,980</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, November 1998 - January 1999, $5.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">82,485</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">82,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, January 1999, $5.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">392</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,960</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,960</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, February 1999, $5.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,994</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, February 1999, $6.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,995</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, March 1999, $6.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">65,989</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">66,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, April 1999, $5.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">363,637</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">364</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,999,640</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000,004</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, April 1999, $3.21</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">160,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">160,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, April 1999, $3.17</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">317,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">317,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, April 1999, $2.89</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">144,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">144,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, April 1999, $3.27</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">184,310</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">184,310</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock adjustment</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">714</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, May 1999, $5.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">272,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">273</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,499,731</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,500,004</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, May - June 1999, $5.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,874</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">61</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">334,746</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">334,807</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, June 1999, $5.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">388,375</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">389</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,941,484</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,941,873</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants in exchange for note receivable, June 1999, $5.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">94,776</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">95</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">473,787</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(473,882</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants in exchange for services rendered, June 1999, $5.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,396</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">66,967</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">66,980</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Reduction of note receivable in exchange for services rendered</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,979</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,979</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Shares tendered in conjunction with warrant exercise, June 1999, $7.8125</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(323,920</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(324</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,530,301</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,530,625</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for shares tendered, June 1999, $5.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">506,125</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">506</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,530,119</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,530,625</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cost of warrants redeemed for cash</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(3,769</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(3,769</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cost related to warrant redemption, June 1999</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(135,431</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(135,431</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Costs related to issuance of common stock</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,179,895</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,179,895</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(6,239,602</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(6,239,602</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,393</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,393</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 36pt; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(6,239,602</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,393</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(6,238,209</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance, July 31, 1999</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">14,740,683</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">14,741</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">20,903,728</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(434,903</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(12,975,678</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(198,040</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">7,309,849</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 1999</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">14,740,683</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">14,741</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">20,903,728</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(434,903</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(12,975,678</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(198,040</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">7,309,849</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Adjustment for exercise of warrants recorded June 1999, $5.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,300</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash, September 1999, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,998</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, January 2000, $4.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">470,590</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">471</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,999,537</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000,008</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Financing costs associated with private placement, January, 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(220,192</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(220,192</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of stock in exchange for services rendered, January 2000, $5.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,492</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of stock options for services rendered, January 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">568,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">568,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of warrants for services rendered, January 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">355,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">355,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, February 2000, $5.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,998</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, March 2000, $5.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,091</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">159,972</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">160,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, March 2000, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,998</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, March 2000, $7.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">59,992</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, June 2000, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,041,669</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,042</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,248,972</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,250,014</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Financing costs associated with private placement, June 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(385,607</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(385,607</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for services, June 2000, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,796</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, July 2000, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,997</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, July 2000, $7.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,700</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">125,233</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">125,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of&#160;&#160;stock options for services rendered, July 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">496,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">496,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Reduction&#160;&#160;of note receivable in exchange for services rendered</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">384,903</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">384,903</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Accrued interest on note receivable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,118</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,118</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(8,841,047</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(8,841,047</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">32,514</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">32,514</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 36pt; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(8,841,047</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">32,514</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(8,808,533</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance, July 31, 2000</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">16,326,333</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">16,327</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">30,435,066</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(54,118</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(21,816,725</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(165,526</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">8,415,025</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 2000</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">16,326,333</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">16,327</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">30,435,066</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(54,118</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(21,816,725</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(165,526</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">8,415,025</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, August 2000, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,998</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for services rendered August 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">411,215</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">411,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for equity line agreement, August 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,406,196</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,406,196</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, August 2000, $7.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">227,220</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">227,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, August 2000, $8.6625</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">259,845</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">259,875</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of warrants, August 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(9</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, August 2000, $10.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">99,990</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, September&#160;&#160;2000, $8.6625</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,335</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">548,576</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">548,639</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, September 2000, $5.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,182</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">88,986</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">89,002</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, September 2000, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">53,087</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">53</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">318,470</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">318,523</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, September 2000, $10.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,584</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">95,830</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">95,840</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, September&#160;&#160;2000, $7.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">243,088</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">243,120</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, October 2000, $11.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,151,093</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,151</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,659,872</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,662,023</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, Oct. 2000, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,999</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Financing costs associated with private placement, October 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,956,340</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,956,340</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, November - December 2000, $4.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,528</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">99,971</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">99,994</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of warrants, December 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,118</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(3</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, November - December 2000, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,913</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">137,455</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">137,478</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, December 2000, $7.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,823</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">61,752</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">61,761</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, December 2000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,650</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,548</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,556</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, January&#160;&#160;2001, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,997</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, January 2001, $14.53</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">344,116</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">344</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,999,656</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Financing costs associated with private placement, January 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(200,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(200,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock pursuant to litigation settlement, January 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,832</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,096</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,098</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of stock options in exchange for services rendered, January 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">745,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">745,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of stock options in exchange for services rendered, February 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">129,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">129,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, February 2001, $5.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">249,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, March 2001, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,999</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options in exchange for note receivable, March 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">249,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(250,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, March 2001, $5.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,992</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">44,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of stock options in exchange for services rendered, May 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">592,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">592,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, June 2001, $5.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">374,925</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">375,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, June 2001, $5.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68,738</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, June 2001, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,996</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, July 2001, $5.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,492</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, July 2001, $5.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,747</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, July 2001, $6.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,998</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, July 2001, $9.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,254,053</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,254</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,598,736</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,599,990</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Financing costs associated with private placement, July 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(768,599</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(768,599</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Shares issued in exchange for services rendered, July 2001, $9.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,784</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">219,978</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">220,002</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Shares issued for Anti-Dilution Provisions, July 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,779</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">53,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">53,456</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, July 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,134</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,134</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Accrued interest on note receivable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(10,182</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(10,182</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(27,097,210</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(27,097,210</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(81,341</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(81,341</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 36pt; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(27,097,210</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(81,341</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(27,178,551</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2001</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">20,681,526</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">20,681</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">76,761,860</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(314,300</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(48,913,935</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(246,867</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; padding-bottom: 2px; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 2px solid; padding-bottom: 2px; text-align: right">27,307,440</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<!-- Field: Page; Sequence: 106; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 2001</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">20,681,526</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">20,681</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">76,761,860</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(314,300</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(48,913,935</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(246,867</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">27,307,440</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, August 2001, $5.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,495</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Purchase of Treasury Stock for cash October 2001, $3.915</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(10,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(39,150</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(39,150</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of stock options in exchange for services rendered, December 2001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, January 2002</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">71,161</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">71,172</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Preferred stock dividend paid January 2002</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(720,900</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(720,900</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Purchase of Treasury Stock for cash</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">February 2002, $4.693</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(31,400</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(147,346</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(147,346</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered, March 2002</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">202,328</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">202,328</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Purchase of Treasury Stock for cash March 2002, $4.911</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(7,700</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(37,816</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(37,816</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Purchase of Treasury Stock for cash April 2002, $4.025</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(12,800</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(54,516</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(54,516</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of stock options in exchange for services rendered, June 2002</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">132,387</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">132,387</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Purchase of Treasury Stock for cash July 2002, $4.025</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(34,600</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(116,703</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(116,703</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Accrued interest on note receivable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(22,585</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(22,585</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(13,693,034</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(13,693,034</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(71,185</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(71,185</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 36pt; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(13,693,034</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(71,185</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(13,764,219</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2002</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">20,697,326</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">20,697</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(96,500</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(395,531</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">77,220,231</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(336,885</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(63,327,869</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(318,052</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">12,862,592</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 2002</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">20,697,326</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">20,697</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">(96,500</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(395,531</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">77,220,231</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(336,885</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(63,327,869</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(318,052</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">12,862,592</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Receipt of restricted shares of common stock as settlement for executive loan, September 2002, $1.90</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(592,716</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,126,157</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,126,157</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Purchase of Treasury Stock for cash October 2002, $1.5574</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(40,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(62,294</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(62,294</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for the services rendered, November 2002, $2.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">988,550</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">988,550</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of stock options in exchange for services receivable, November 2002, $2.10</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">171,360</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">171,360</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, November 2002, $2.10</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,970</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, January 2003, $2.10</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,465</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,475</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Purchase of Treasury Stock for cash December 2002, $2.0034</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(13,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(26,044</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(26,044</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Preferred stock dividend paid January 2003</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(764,154</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(764,154</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, March 2003, $1.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">69,930</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, May 2003, $1.15</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,926,301</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,926</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,362,324</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,365,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Financing costs associated with private placement, May 2003</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(235,568</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(235,568</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, May 2003, $1.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">52,465</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">52,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, June 2003, $1.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">666,667</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">667</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">999,333</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, June 2003, $2.00</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants for cash, June 2003, $1.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,496,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,496</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,242,506</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,244,002</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of warrants, June 2003</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,379</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(16</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, June 2003, $1.59</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">111,230</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">111,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Accrued interest on note receivable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(23,113</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(23,113</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(13,261,764</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(13,261,764</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">406,830</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">406,830</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 36pt; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(13,261,764</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">406,830</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(12,854,934</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2003</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">26,017,524</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">26,017</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(742,216</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(1,610,026</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">85,065,980</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(359,998</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(77,353,787</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">88,778</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">5,856,965</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0"><B>&#160;</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0"><B>&#160;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable -</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income (Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 2003</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">26,017,524</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">26,017</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">(742,216</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(1,610,026</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">85,065,980</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(359,998</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(77,353,787</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">88,778</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">5,856,965</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Shares issued pursuant to acquisition of Antigen Express Inc., August 2003</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,779,974</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,780</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,639,777</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,642,557</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cost of stock options to be assumed in conjunction with merger</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">154,852</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">154,852</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, September 2003, $1.59</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,890</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, October 2003, $2.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,275</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,290</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, October 2003, $1.59</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,890</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, October 2003, $0.30</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">65,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">65</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,435</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, October 2003, $0.55</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,960</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, October 2003, $1.98</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">296,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">297,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, October 2003, $1.84</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">337,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">338</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">620,662</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">621,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for the services rendered October 2003 (at $1.35)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, November 2003,$2.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,040</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,050</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Redemption of Treasury Stock, November 2003, $2.17</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(742,216</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(742</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">742,216</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,610,026</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,609,284</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of stock options in exchange for services, November 2003 (at $1.71)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">151,433</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">151,433</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Jan 2004, $1.47</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,700,680</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,701</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,498,299</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,500,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Jan 2004, $1.80</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">55,556</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">56</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">99,944</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Jan 2004, $1.75</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">228,572</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">229</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">399,771</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">400,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Financing costs associated with private placement, January 2004</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(68,012</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(68,012</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Preferred Stock Dividend paid in January</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(810,003</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(810,003</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Feb 2004, $1.60</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">93,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">94</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">149,906</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Feb 2004, $1.66</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68,675</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">69</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,932</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">114,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Feb 2004, $1.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">666,667</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">667</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">999,334</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,000,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Feb 2004, $1.48</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,089</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,097</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, Feb 2004, $1.48</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">175,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">175</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">258,825</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">259,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, Feb 2004, $1.51</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">112,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">169,762</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">169,875</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, July 2004, $1.22</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,459,016</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,459</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,997,541</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Financing costs associated with private placement, July 2004</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(41,250</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(41,250</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Variable accounting non-cash compensation expense</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,390</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,390</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Accrued interest on note receivable</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(24,805</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(24,805</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(18,362,583</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(18,362,583</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; padding-bottom: 2px; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">207,593</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">207,593</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 36pt; padding-bottom: 2px; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(18,362,583</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">207,593</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(18,154,990</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2004</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">34,262,448</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">34,264</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">97,110,291</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(384,803</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(96,526,373</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">296,371</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">529,751</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable -</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income (Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 2004</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">34,262,448</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">34,264</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">97,110,291</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(384,803</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(96,526,373</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">296,371</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">529,751</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, Aug 2004, $1.09</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">620,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">620</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">675,180</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">675,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered Aug 2004, $1.08</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">415,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">415,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of stock options in exchange for services,Oct 2004, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cancellation of common stock for non-performance of services, Oct 2004, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(75,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(75</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(137,925</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(138,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with financing, Nov 2004, $0.91</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">89,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">89,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures, $4,000,000, Nov 2004 $0.91</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,722,222</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,722,222</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of beneficial conversion feature on convertible debentures, $4,000,000, Nov 2004 $0.91</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,722,222</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,722,222</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, Dec 2004, $0.71</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">48,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">48</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34,032</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34,080</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Conversion of Series A Preferred Stock, Dec 2004 $25.77</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">534,085</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">534</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,309,523</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,310,057</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, Jan 2005, $0.85</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,282</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, Jan 2005, $0.75</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,960</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, Feb 2005, $0.69</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,402</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,420</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of principal and interest due, $4,000,000, Feb 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250,910</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">251</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">181,262</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">181,513</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, Feb 2005, $0.68</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of principal and interest due, $4,000,000, Mar 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">265,228</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">265</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">162,197</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">162,462</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of principal and interest due, $4,000,000, Apr 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">314,732</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">315</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">162,275</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">162,590</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $143,500 of $4,000,000 debenture, Apr 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">175,316</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">175</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">143,584</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">143,759</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Apr 2005, $0.56</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,919</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,928</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures, $500,000, Apr 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">245,521</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">245,521</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of beneficial conversion feature on convertible debentures, $500,000, Apr 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">86,984</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">86,984</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures, $100,000, Apr 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,104</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,104</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of beneficial conversion feature on convertible debentures, $100,000, Apr 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,397</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,397</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for services rendered Apr 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, Apr 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">350,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">286,650</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">287,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, Apr 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">950,927</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">951</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">778,809</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">779,760</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of stock options in exchange for outstanding liabilities, Apr 2005, $0.001</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,332,052</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,332,052</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of principal and interest due, $4,000,000, May 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">482,071</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">482</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">321,877</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">322,359</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $300,000 of $4,000,000 debenture, May 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">365,914</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">366</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">299,683</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,049</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $244,000 of $4,000,000 debenture, May 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">297,659</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">298</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">243,783</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">244,081</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $410,000 of $4,000,000 debenture, May 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">500,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">409,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">410,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with 1st extension of due date of $600,000 convertible debentures, May 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">717,073</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">717,073</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of principal and interest due, $4,000,000, June 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">311,307</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">311</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">244,644</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">244,955</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in conjunction with financing,$2,000,000, June 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">170,732</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">171</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">139,829</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">140,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with financing, $2,000,000,June 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures,$2,000,000, June 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">828,571</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">828,571</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of beneficial conversion feature on convertible debentures, $2,000,000, June 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,171,429</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,171,429</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $100,000 of $2,000,000 debenture, June 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">166,667</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">167</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">99,833</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $190,000 of $2,000,000 debenture, June 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">316,927</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">317</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">189,839</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">190,156</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock In exchange for services rendered, June 2005, $0.60</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,207</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,861</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,924</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, June 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">90,319</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">90</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">73,971</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74,061</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $17,000 of $2,000,000 debenture, July 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">28,398</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">28</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,011</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,039</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $75,000 of $2,000,000 debenture, July 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">125,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">125</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,035</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,160</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with 2nd extension of due date of $600,000 convertible debentures,July 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">629,268</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">629,268</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of principal and interest due, $4,000,000, July 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">364,123</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">364</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">237,586</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">237,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, July 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">820,128</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">820</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">671,685</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">672,505</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Granting of stock options in exchange for services,July 2004, $0.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,155</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,155</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Accrued interest on note receivable</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(6,300</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(6,300</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Write-off of uncollectible notes receivable &#8211; common stock</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">391,103</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">391,103</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Variable accounting non-cash compensation expense</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(24,001,735</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(24,001,735</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; padding-bottom: 2px; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">272,478</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">272,478</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 36pt; padding-bottom: 2px; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(24,001,735</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">272,478</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(23,729,257</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2005</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">41,933,898</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">41,935</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">126,044,326</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(120,528,108</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">568,849</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">6,127,003</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable -</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income (Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 2005</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">41,933,898</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">41,935</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">126,044,326</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(120,528,108</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">568,849</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">6,127,003</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $4,000,000, August 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">429,041</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">429</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">282,738</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">283,167</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered August 2005 (at $0.61)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,877</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,896</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered August 2005 (at $0.59)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">246,429</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">246</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">145,147</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">145,393</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $4,000,000, September 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">388,730</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">389</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">267,835</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">268,224</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, September 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">322,373</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">322</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">222,115</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">222,437</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $504,538 of $2,000,000 debenture, September 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">841,309</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">841</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">503,945</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">504,786</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $286,538 of $2,000,000 debenture, September 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">477,962</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">478</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">286,299</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">286,777</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $457,200 of 2nd $2,000,000 debenture, September 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">762,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">762</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">456,739</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">457,501</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, September 2005, $0.81</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">162,933</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">163</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,442</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,605</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $211,538 of $2,000,000 debenture, September 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">353,665</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">354</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">211,845</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">212,199</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $150,000 of 2nd $2,000,000 debenture, September 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">149,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $457,317 of 2nd $2,000,000 debenture, September 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">762,195</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">762</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">458,209</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">458,971</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in conjunction with financing, 2nd $2,000,000, September 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">170,732</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">171</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">139,829</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">140,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with financing, 2nd $2,000,000, September 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures, 2nd $2,000,000, September 2005 (at $0.82)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">785,185</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">785,185</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of Beneficial Conversion Feature on Convertible Debentures, 2nd $2,000,000, September 2005 (at $0.82)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,185,185</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,185,185</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $4,000,000, October 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">243,836</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">244</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">163,126</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">163,370</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, October 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,949</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,458</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,526</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $307,317 of 2nd $2,000,000 debenture, October 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">512,195</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">512</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">306,805</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">307,317</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $300,000 of $2,000,000 debenture, October 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">501,397</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">501</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,337</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,838</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $500,000 of $500,000 debenture, October 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">644,003</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">644</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">527,438</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">528,082</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $113,077 of&#160;&#160;$2,000,000 debenture, October 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">189,019</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">189</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,222</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,411</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $297,692 of $4,000,000 debenture, October 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">364,113</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">364</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">298,209</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">298,573</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, October 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,404,876</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,405</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,883,593</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,891,998</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, October 2005, $0.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">101,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">101</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,844</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,945</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, October 2005, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,560</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $100,000 of $100,000 debenture, October 2005</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">128,834</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">129</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">105,515</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">105,644</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with financing, $500,000, October 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures, $500,000, October 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">270,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">270,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants as exercise inducement Oct 2005, $1.20</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">573,146</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">573,146</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants as exercise inducement Oct 2005, $1.25</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,501,390</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,501,390</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of Beneficial Conversion Feature on Convertible Debentures, $500,000, October 2005 (at $0.82)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">229,050</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">229,050</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $4,000,000, Nov 2005, $1.17</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">108,006</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">108</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">126,259</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">126,367</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, Nov 2005, $1.17</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,753</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,584</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,601</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, November 2005, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">93,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">94,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, November 2005, $0.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">944</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">946</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, November 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,058,536</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,058</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,504,942</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,508,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered November 2005, $0.97</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64,287</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,294</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,358</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $42,800 of 2nd $2,000,000 debenture, Nov 2005, $1.23</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">72,058</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">72</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">88,559</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">88,631</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered August 2005, $0.97</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,897</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,916</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $230,769 of $4,000,000 debenture, November 2005,$0.97</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">282,721</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">283</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">273,957</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">274,240</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, Dec 2005, $0.98</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">212,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">213</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">208,282</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">208,495</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $1,451,000 of&#160;&#160;$3,500,000 debenture, Dec 2005, $0.93</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,770,223</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,770</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,644,537</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,646,307</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $4,221 of 2nd $2,000,000 debenture, Dec 2005, $0.85</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,042</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,979</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,986</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in conjunction with financing, $3,500,000, December 2005, $0.95</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">224,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">224</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">212,576</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">212,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with financing, $3,500,000, December 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">76,650</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">76,650</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures, $3,500,000, December 2005, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,648,387</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,648,387</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of Beneficial Conversion Feature on Convertible Debentures, $3,500,000, December 2005,$0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,851,613</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,851,613</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants as exercise inducement Dec 2005, $1.25</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,115,853</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,115,853</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $82,000 of $3,500,000 debenture, December 2005, $0.84</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">83,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">84,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, 2nd $2,000,000, Jan 2006, $0.81</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,149</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,796</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,871</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $500,000, Jan 2006, $0.81</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">53,612</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">54</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,372</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,426</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $617,000 of $3,500,000 debenture, January 2005, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">757,630</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">758</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">711,415</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">712,173</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in conjunction with financing, $4,000,000, January 2006, $1.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">266,667</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">267</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">266,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">266,667</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with financing, $4,000,000, January 2006, $1.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">88,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">88,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures, 4,000,000, January 2006, $1.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,653,631</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,653,631</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of Beneficial Conversion Feature on Convertible Debentures, 4,000,000, January 2006, $1.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,463,155</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,463,155</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, January 2006, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,317,072</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,317</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,992,682</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,999,999</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants as exercise inducement Jan 2006, $1.60</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,109,756</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,109,756</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, January 2006, $0.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,290</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $850,000 of $3,500,000 debenture, January 2006, $1.06</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,045,779</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,046</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,107,480</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,108,526</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $500,000, Feb 2006, $1.23</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,812</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">61,219</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">61,269</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, Feb 2006, $1.23</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,746</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">83,260</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">83,328</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, December 2005, $0.90</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">140,115</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">140</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">125,964</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">126,104</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, February 2006, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">303,902</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">304</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">248,896</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">249,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered February 2006, $1.53</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">76,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">76,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, February 2006, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">80,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">80</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,120</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, February 2006, $1.59</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">80,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">80</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">127,120</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">127,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, February 2006, $1.38</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,580</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, February 2006, $1.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,809,524</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,810</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,996,191</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, February 2006, $1.20</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">909,756</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">910</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,090,797</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,091,707</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, February 2006, $1.25</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,578,048</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,578</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,717,982</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,722,560</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, February 2006, $1.72</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34,782</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">59,790</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">59,825</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $950,000 of Jan $4,000,000 debenture, Feb 2006, $2.38</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">904,762</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">905</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,152,429</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,153,334</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures, 4,000,000, February 2006, $1.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,374,507</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,374,507</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of Beneficial Conversion Feature on Convertible Debentures, 4,000,000, February 2006, $1.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,625,493</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,625,493</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants as exercise inducement Feb 2006, $3.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,294,141</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,294,141</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $1,550,000 of Jan $4,000,000 debenture, Mar 2006, $2.21</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,485,349</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,485</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,281,136</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,282,621</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $1.72</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">347,913</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">348</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">598,062</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">598,410</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, Mar 2006, $2.31</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,094</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">154,920</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">154,987</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $500,000, March 2006, $2.31</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,312</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,861</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,910</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $3,500,000, Mar 2006, $2.31</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">55,644</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">56</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">128,482</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">128,538</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered March 2006, $2.31</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">115,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">115,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, March 2006, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,222</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">281,909</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">282,209</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $2,350,000 of Feb $4,000,000 debenture, Mar 2006, $2.31</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,880,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,880</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,340,920</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,342,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, March 2006, $1.47</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">274,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">274</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">403,241</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">403,515</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $1.25</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,600,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,998,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $0.91</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">54,540</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">54,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, March 2006, $1.59</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">263,700</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">264</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">419,019</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">419,283</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $500,000 of Feb $4,000,000 debenture, Mar 2006, $2.20</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">400,592</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">401</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">880,902</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">881,303</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">48,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">48</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39,312</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39,360</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $1.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">46,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">46</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">48,254</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">48,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $200,000 of Jan $4,000,000 debenture, March 2006, $2.31</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">192,136</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">192</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">443,642</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">443,834</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, March 2006, $1.71</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">180,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">180</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">307,620</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">307,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $384,615 of $500,000 debenture, March 2006, $3.33</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">470,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">470</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,566,129</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,566,599</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $1.68</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,639,344</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,639</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,752,459</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,754,098</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of stock warrants, March 2006, $2.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,179</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(8</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $1.25</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">84,932</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">85,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, March 2006, $2.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">175,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">175</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">367,325</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">367,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, March 2006, $1.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">164,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">165,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, March 2006, $1.52</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">227,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">228,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, March 2006, $2.19</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">328,350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">328,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $2.15</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,298</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $1.88</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">58,249</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">58,280</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $2.02</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,438</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">47,322</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">47,345</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, March 2006, $0.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">120,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">121</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,952</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">76,073</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, March 2006, $1.86</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">170,068</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">170</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">316,156</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">316,326</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered March 2006, $2.96</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">73,975</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable March 2006, $3.20</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,390</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,646</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,648</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants as exercise inducement Mar 2006, $3.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,293,953</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,293,953</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, April 2006, $2.70</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,083</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">181,057</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">181,124</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, $3,500,000, April 2006, $2.70</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,812</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">134,443</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">134,493</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, Jan $4,000,000, Apr 2006, $2.70</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">167,144</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">167</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">451,122</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">451,289</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, April 2006, $1.88</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">54,491</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">54,520</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, April 2006, $1.47</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">95,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">95</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">140,290</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">140,385</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $307,692 of 2nd $2,000,000 debenture, April 2006, $2.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">513,158</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">513</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,349,092</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,349,605</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $423,077 of&#160;&#160;$3,500,000 debenture, April 2005, $2.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">516,291</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">516</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,357,329</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,357,845</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $923,077 of Jan $4,000,000 debenture, April 2006, $2.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">879,699</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">880</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,312,729</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,313,609</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, April 2006, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,475</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, April 2006, $0.82</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">132,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">132</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">108,108</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">108,240</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, April 2006, $0.91</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">54,540</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">54,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, April 2006, $1.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">69,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">69</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">72,381</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">72,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of deposit April 2006, $1.25</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">204,465</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">204</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">255,377</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">255,581</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered April 2006, $2.67</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">102,490</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">102,528</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for the services rendered April 2006, $2.66</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">137,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">137,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, Jan $4,000,000, May 2006, $3.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74,322</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">230,324</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">230,398</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000, May 2006, $3.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">172,713</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">173</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">535,238</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">535,411</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, May 2006, $2.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">52,475</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">52,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, May 2006, $1.47</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,690</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,700</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for the services rendered May 2006, $1.91</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation May 2006, $1.88</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">755,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">755</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,418,645</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,419,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2006, $1.85</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,784</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,997</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2006, $1.88</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">71,402</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">71,440</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, Jan $4,000,000, Jun 2006, $1.96</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">73,979</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">144,925</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">144,999</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000, Jun 2006, $1.96</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">83,911</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">84</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">164,382</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">164,466</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, June 2006, $1.25</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,327,880</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,328</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,658,522</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,659,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, June 2006, $1.60</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,036,310</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,036</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,855,060</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,858,096</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants as exercise inducement June 2006, $2.35</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,549,670</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,549,670</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, June 2006, $2.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,414,636</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,415</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,996,589</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,000,004</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered June 2006, $1.85</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,784</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,997</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, Jan $4,000,000, July 2006, $1.75</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">66,264</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">66</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">115,896</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">115,962</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000, July 2006, $1.75</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64,923</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">65</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,550</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,615</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered July 2006, $1.40</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,995</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(67,967,204</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(67,967,204</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; padding-bottom: 2px; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">185,232</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">185,232</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 36pt; padding-bottom: 2px; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(67,967,204</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">185,232</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(67,781,972</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2006</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">107,398,360</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">107,397</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">243,097,627</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(188,495,312</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">754,081</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">55,463,794</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable -</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income (Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 2006</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">1,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">107,398,360</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">107,397</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">243,097,627</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(188,495,312</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">754,081</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">55,463,794</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000,&#160;&#160;Aug 2006, $1.48</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64,718</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">65</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">95,718</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">95,783</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Aug 2006, $1.43</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,725</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due Feb $4,000,000, Sep 2006 $1.53</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">98,468</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">98,532</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2006, $1.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,475</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due , Feb $4,000,000, Oct 2006, $1.65</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">105,536</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">105,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2006, $1.83</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,262</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,862</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,889</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2006, $1.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,475</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Oct 2006, $1.83</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">182,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">183,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, Oct 2006, $1.25</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">124,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">125,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, Oct 2006, $1.59</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">90,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">90</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">143,487</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">143,577</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, Oct 2006, $1.47</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,549</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,555</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due Feb $4,000,000, Nov 2006, $2.02</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,764</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">128,740</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">128,804</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, Nov 2006, $1.59</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,835</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Nov 2006, $2.15</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">107,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">107,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000, Dec 2006, $2.08</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,384</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">131,775</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">131,838</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2006, $1.68</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">41,975</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jan 2007, $1.77</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">44,225</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">44,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversation of $52,554 of Feb $4,000,000 debenture, Jan, $1.74</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,043</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">73,113</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">73,155</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of 52,554 of Feb $4,000,000 debenture, Jan, $1.77</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,043</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74,374</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Feb 2007, $1.90</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">47,475</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">47,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2007, $1.71</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">170,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">171,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Mar 2007,$1.71</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,844</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,823</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,833</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for the services rendered Mar 2007,$1.71</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">125,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">125,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Mar 2007, $1.71</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">296,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">296</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">505,864</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">506,160</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2007, $1.65</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,637</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,487</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2007, $1.69</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,225</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $52,554 of Feb $4,000,000 debenture, Mar 2007, $1.71</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,043</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">71,851</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">71,893</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Mar 2007, $1.70</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,951</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,412</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2007, $1.71</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,842</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,865</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Preferred Shares Redemption, April 2007</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(99</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(100</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2007, $1.65</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,637</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,486</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2007, $1.69</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,225</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Apr 2007, $1.64</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,132</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,411</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $52,554 of Feb $4,000,000 debenture, Apr 2007, $1.61</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,043</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,647</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,689</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2007, $1.60</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,342</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,365</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, May 2007, $0.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,145</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2007, $1.47</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,725</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2007, $1.47</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,637</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,033</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,047</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation May 2007, $1.45</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,805</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,411</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation May 2007, $1.45</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">450,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">652,050</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">652,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for the services rendered May 2007, $1.45</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">141,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">141,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cancellation of common stock, May 2007, $1.45</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(150,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(150</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jun 2007 , $1.40</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,796</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,819</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jun 2007, $1.83</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,637</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,942</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,956</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered Jun 2007, $1.80</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">44,975</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Jul 2007, $1.78</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,411</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jul 2007, $1.78</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,433</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,456</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, Jul 2007, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">65,730</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">65,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, Jul 2007, $0.56</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">55,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">56,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jul 2007, $1.75</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,637</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,851</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,865</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jul 2007, $1.68</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">41,975</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation April 2007, $1.65</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,101</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,412</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Net Loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(23,504,958</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(23,504,958</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; padding-bottom: 2px; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">127,726</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">127,726</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 36pt; padding-bottom: 2px; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(23,504,958</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">127,726</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(23,377,232</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2007</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">109,616,518</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">109,616</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">247,079,439</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(212,000,270</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">881,807</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">36,070,592</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Receivable -</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income (Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance, August 1, 2007</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">109,616,518</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">109,616</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">247,079,439</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">(212,000,270</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">881,807</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 4%; text-align: right">36,070,592</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered August 2007,&#160;&#160;$1.57</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,660</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,683</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of restricted common stock to officers as employee compensation August 2007</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">550,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">550</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(550</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">527,909</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">527,909</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation August 2007, $1.51 (Issued under the 2006 Plan and fully vested)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">151,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation August 2007, $1.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,611</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,411</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered September 2007, $1.48</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,615</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,637</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered September 2007, $1.61</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,872</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,880</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered September 2007, $1.53</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">76,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">76,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation September 2007,$1.55</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,430</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,411</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered October 2007, $1.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34,069</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34,092</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation October 2007, $1.52</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">446,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">446</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">677,474</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">677,920</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered October 2007, $1.53</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,232</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,240</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered October 2007, $1.50</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">56,213</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">56,251</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation October 2007, $1.53</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,501</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,411</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered November 2007, $1.71</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,842</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,865</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered November 2007, $1.75</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,992</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation November 2007,$1.70</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,951</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,412</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered November 2007, $1.54</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">228,087</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">228</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">349,771</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">349,999</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered November 2007, $1.53</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">98,168</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">98</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">149,903</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered December 2007, $1.80</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,888</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,911</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered December 2007, $1.84</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,712</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,720</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, December 2007, $1.59</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,259</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,290</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation &#8211; officers</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,242</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,242</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered December 2007, $1.74</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">86,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">87,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation December 2007,$1.75</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,810</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,413</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,418</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered January 2008, $1.61</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,569</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,592</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered January 2008, $1.38</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,032</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,040</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered January 2008, $1.34</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,213</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation October 2007, $1.36</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,189</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,411</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered February 2008, $1.36</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,728</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,887</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,910</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered February 2008, $1.34</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,712</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,720</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, February 2008, $1.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">69,930</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">70,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation February 2008, $1.32</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,376</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,410</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered March 2008, $1.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,992</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation &#8211; officers</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,242</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,292</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered March 2008, $0.95</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,093</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">47,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">47,458</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation March 2008, $1.04</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,409</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,609</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered March 2008, $1.14</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">227,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">227,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for the services rendered March 2008,$3.75</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">52,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">52,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants as employee compensation March 2008, $0.94</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debenture, March 2008,$1.10</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,323,109</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,323,109</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in conjunction with convertible debentures, March 2008,$1.21</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,323,109</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,323,109</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Repurchase of common stock March 2008, $1.16</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(326,255</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(326</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(378,130</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(378,456</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Option repricing costs March 2008</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Value of Beneficial Conversion Feature on Convertible Debentures, March 2008, $1.21</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,768,946</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,768,946</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, April 2008, $1.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">49,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered April 2008,$1.19</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,512</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,520</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, April 2008, $0.89</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">222,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">222,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered April 2008,$1.06</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39,713</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation April 2008, $1.08</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,793</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,409</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2008,$1.05</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,392</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock options, May 2008, $0.96</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">58,078</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">58,078</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation May 2008, $1.00</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,409</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,242</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,242</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2008,$0.97</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">48,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">48,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered June 2008,$0.95</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,592</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation June 2008, $0.97</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,677</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,409</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,418</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered July 2008,$0.79</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,312</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,320</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered July 2008,$0.80</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,963</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation July 2008, $0.83</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,141</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,409</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,419</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Comprehensive Income (Loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(36,228,991</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(36,228,991</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; padding-bottom: 2px; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">32,688</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">32,688</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 36pt; padding-bottom: 2px; text-indent: -9pt">Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(36,228,991</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">32,688</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(36,196,303</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2008</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">111,992,603</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">111,992</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">269,849,581</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(248,229,261</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">914,495</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">22,646,807</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance at August 1, 2008</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">111,992,603</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">111,992</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">269,849,581</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">(248,229,261</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">914,495</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">22,646,807</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments on convertible notes Aug 2008, $0.65</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,891,182</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,891</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,873,775</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,876,666</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,680</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,680</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Aug 2008, $0.56</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,690</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,405</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,885</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,885</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash Aug 2008, $0.56</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">55,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">56,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments on convertible notes Sept 2008, $0.52</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,597,214</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,597</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,873,069</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,876,666</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Sept. 2008, $0.58</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">28,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Sept. 2008, $0.53</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,116</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,120</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Sept 2008, $0.56</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,030</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,402</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments on convertible notes Oct 2008, $0.29</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,638,809</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,639</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">756,810</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">759,449</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of interest on Convertible Notes, Oct 2008, $0.52</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">483,195</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">483</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">251,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">252,083</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Oct 2008, $0.32</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,276</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,280</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, July 2008 $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,213</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,251</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Oct 2008, $0.31</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,151</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,390</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, Nov 2008, $0.29</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,144,605</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,145</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">615,073</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">617,218</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,680</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,680</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Nov 2008, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,048</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,393</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,414</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,414</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Nov 2008, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,396</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Nov 2008, $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,475</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Dec 2008, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,335</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,967</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Dec 2008, $0.47</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,876</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,880</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Dec 2008, $0.53</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68,102</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,932</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Dec 2008, $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,149</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,394</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Warrant modification costs, Dec 2008</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,589,988</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,589,988</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, Jan 2009, $0.32</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,556,989</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,557</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,372,109</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,376,666</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, Jan 2009, $0.34</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,356</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,360</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, Jan 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,338</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,376</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for services rendered, Jan 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,182</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,982</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Jan 2009, $0.34</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,755</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,392</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Feb 2009, $0.27</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,059</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,978</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,680</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,680</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Feb 2009, $0.23</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,594</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,380</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,414</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,414</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, Mar 2009, $0.18</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,713,359</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,713</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,916,620</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,927,333</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of interest on Convertible Notes, Mar 2009, $0.18</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">773,743</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">774</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">138,423</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">139,197</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Feb 2009, $0.27</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,076</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,080</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Mar 2009, $0.29</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,225</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Mar 2009, $0.30</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">74,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Mar 2009, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,396</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance fo common stock in exchange for the services rendered, Mar 2009, $0.31</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,870</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,979</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Mar 2009, $0.31</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,151</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,390</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Mar 2009, $0.29</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">on Convertible Notes, Apr 2009, $0.28</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,783,997</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,784</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,920,550</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,927,334</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Apr 2009, $0.30</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">44,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">44,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Mar 2009, $0.30</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">44,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Apr 2009, $0.30</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,196</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Apr 2009, $0.39</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">58,350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">58,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Apr 2009, $0.39</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,588</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,626</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Apr 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,254</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,982</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, Apr 2009, $0.30</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,424,242</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,424</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,194,606</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,202,030</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of stock warrants, Apr 2009, $0.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">341,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">341</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(341</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Apr 2009, $0.37</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,748</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,394</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, May 2009, $0.40</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,019</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,985</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,378</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,378</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, May 2009, $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,149</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,394</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,414</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,414</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, May 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,840,404</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,840</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,921,493</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,927,333</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of interest on Convertible Notes, May 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">341,534</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">341</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">112,365</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">112,706</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, May 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,151,517</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,152</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,539,848</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,555,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, May 2009, $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,516</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,520</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, May 2009, $0.37</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,225</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, May 2009, $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">435,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">435</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">164,865</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">165,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, May 2009, $0.37</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,391</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,430</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, May 2009, $0.42</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered, May 2009, $0.29</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, Jun 2009, $0.36-0.65</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">982,382</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">982</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">437,715</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">438,697</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Jun 2009, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,200,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,804,964</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,822,164</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jun 2009, $0.62</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,476</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,480</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jun 2009, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,353</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,991</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Jun 2009, $0.57</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,766</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,402</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jun 2009, $0.42</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as converstion of Convertible Notes, June 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,914,251</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,914</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,616,789</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,621,703</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Jun 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">230,513</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">231</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">75,839</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">76,070</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jun 2009, $0.43</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64,350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">64,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jun 2009, $0.76</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">500,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">379,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">380,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jun 2009, $0.58</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">260,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">260</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,540</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jun 2009, $0.43</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">85,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">86,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jul 2009, $0.58</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,332</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,336</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jul 2009, $0.56</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">83,985</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">84,135</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Apr 2009, $0.65</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,524</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,561</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered, Jul 2009, $0.62</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,717</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,991</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of stock warrants, Jun 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,567,583</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,568</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(9,568</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation, Jul 2009, $0.66</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,753</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,404</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, July 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">330,817</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">330</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">108,839</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">109,169</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Warrant modification costs, July 2009</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,608,616</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,608,616</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(45,812,228</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(45,812,228</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; padding-bottom: 2px; text-indent: -9pt">Currency translation adjustment</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(262,908</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(262,908</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 36pt; padding-bottom: 2px; text-indent: -9pt">Total comprehensive income (loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(45,812,228</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(262,908</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(46,075,136</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2009</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">212,628,814</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">212,628</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">307,401,016</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(294,041,489</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="text-align: left; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">651,587</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">14,223,742</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance at August 1, 2009</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">212,628,814</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">212,628</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">307,401,016</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">(294,041,489</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">651,587</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">14,223,742</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Effect of the initial adoption of accounting for down-round provision</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(13,844,822</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(5,981,043</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(19,825,865</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of warrants classified as derivatives</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,020,557</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,020,557</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,227</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,227</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Aug 2009, $0.6215</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,543</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,403</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,736</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,736</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Aug 2009, $0.79</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,558,013</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,558</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,152,142</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,160,700</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Aug 2009, $0.61</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,436</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,440</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Aug 2009, $0.63</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered May 2009, $0.46</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,653</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,653</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, Sep 2009, $0.55-0.77</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,582,640</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,583</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,053,877</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,055,459</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Sep 2009, $0.76</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,036</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,040</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Sep 2009, $0.7215</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">83,335</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">83</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,043</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,126</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Sep 2009, $0.7254</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,603</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,405</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Sep 2009, $0.80</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,312,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,313</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,224,660</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,239,973</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Sep 2009, $0.62</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">124,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">124,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Sep 2009, $0..76</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">151,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">152,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2009, $0.68</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">169,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">170,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2009, $0.695</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,776</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,780</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2009, $0.65</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,735</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2009, $0.525</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,650</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,688</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of stock warrants, Jan 2010, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,466,239</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,467</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,466</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2009, $0.525</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,440</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Oct 2009, $0.60</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,028</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,403</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, Sep 2009, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,599,817</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,513,340</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,517,940</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Option modification costs, Oct 2009</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">875,773</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">875,773</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - officers stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,227</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,227</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Nov 2009, $0.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,833</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Nov 2009, $0.61</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39,144</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,961</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Nov 2009, $0.51</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,036</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,040</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Nov 2009, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">26,940</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2009, $0.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,040</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,050</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2009, $0.56</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,957</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,996</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, Dec 2009, $0.48-0.67</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,713,030</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,713</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">934,666</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">936,379</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2009, $0.61</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,436</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,440</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for the services rendered Dec 2009, $0.51</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">505,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">505,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered Dec 2009, $0.46</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,766</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,766</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2009, $0.57</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,565</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,989</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2009, $0.53</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,740</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Dec 2009, $0.56</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,030</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,402</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jan 2010, $0.67</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,676</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,680</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jan 2010, $0.59</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,945</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jan 2010, $0.62</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,615</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,990</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jan 2010, $0.63</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,588</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,626</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of stock warrants, Jan 2010, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">779,220</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">779</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(779</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jan 2010, $0.63</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,740</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Jan 2010, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,221</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,403</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">499,469</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">499,469</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Feb 2010, $0.60</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,044</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,403</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Feb 2010, $0.60</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,921</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,990</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Feb 2010, $0.59</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,340</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,344</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of warrants in exchange for the services rendered Mar 2010, $1.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">86,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">86,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Feb, $0.625</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,440</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2010, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,430</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,440</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2010, $0.62</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">483,871</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">484</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">299,516</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2010, $0.62</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">187,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">187,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2010, $0.53</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">106,360</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">106,560</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, Mar 2010, $0.45-0.65</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,198,808</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,199</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">693,896</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">695,095</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2010, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,556</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,560</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered Mar 2010, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,959</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,959</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2010, $0.60</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,977</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,990</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2010, $0.54</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,262</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,322</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Mar 2010, $0.56</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,912</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,402</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2010, $0.49</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,956</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,960</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2010, $0.53</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,663</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,668</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2010, $0.47</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,637</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,987</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Apr 2010, $0.47</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">870,373</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">872,373</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Apr 2010, $0.4258</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">813,036</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">815,036</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Apr 2010, $0.42</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">792,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">794,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2010, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,838</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,876</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of stock warrants, Apr 2010, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,390,167</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,390</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,390</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock warrants for cash, Apr 2010, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">170,068</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">170</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">55,952</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">56,122</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2010, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,245</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2010, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">26,940</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Apr 2010, $0.46</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,270</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,399</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">272,206</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">272,206</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation May 2010, $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,211</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,394</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2010, $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,752</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,984</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2010, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,296</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May, $0.39</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,460</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,520</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2010, $0.39</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,955</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,960</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jul 2010, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">54,545</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">55</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,945</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, Jun 2010, $0.33-0.37</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">936,895</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">937</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">324,725</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">325,662</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jun 2010, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,396</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered Jul 2010, $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">28,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">28,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered Mar 2010, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,766</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,766</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jun 2010, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,385</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,985</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jun 2010, $0.32</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,284</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,344</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Jun 2010, $0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,209</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,392</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jul 2010, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,376</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,380</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jun 2010, $0.32</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,607</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,612</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jun 2010, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">52,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">53,100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jul 2010, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,912</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,981</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, May 2010, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">666,732</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">668,732</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, May 2010, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">669,420</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">671,420</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Jun 2010, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">675,756</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">677,756</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jul 2010, $0.40</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,963</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jul 2010, $0.40</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,940</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation July 2010, $0.35</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,841</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,393</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(25,279,940</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(25,279,940</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-left: 27pt; padding-bottom: 2px; text-indent: -9pt; text-align: left">Currency translation adjustment</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">132,596</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">132,596</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-left: 36pt; padding-bottom: 2px; text-indent: -9pt; text-align: left">Total comprehensive income (loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(25,279,940</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">132,596</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(25,147,344</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: -9pt">Balance at July 31, 2010</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">269,599,615</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">269,600</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">333,219,309</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(325,302,472</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">784,183</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">8,970,620</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Deficit</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">SVR</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Notes</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Accumulated</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Preferred</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; text-indent: 0pt">Treasury</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Additional</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Receivable&#160;-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">During&#160;the</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Other</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Total</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Paid-In</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Common</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Development</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Comprehensive</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">Stockholders&#8217;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Shares</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Capital</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stock</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Stage</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Income&#160;(Loss)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Deficiency)/Equity</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 23%; padding-left: 9pt; text-indent: -9pt">Balance at August 1, 2010</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">269,599,615</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">269,600</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">333,219,309</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">(325,302,472</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">784,183</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: right">8,970,620</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">47,672</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">47,672</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Aug 2010, $0.43</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,701</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,397</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2010, $0.40</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,881</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,985</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Aug 2010, $0.36</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,436</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,440</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Aug, $0.38</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,740</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,800</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cashless exercise of stock warrants, Sep 2010, $0.001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">998,118</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">998</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(998</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, Sep 2010, $0.36-0.49</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">532,389</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">532</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">221,889</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">222,421</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Sep 2010, $0.41</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,629</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,633</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered Sep 2010, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,766</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,766</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Sep 2010, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,239</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,987</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Sep 2010, $0.49</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,340</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Sep 2010, $0.50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,876</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,400</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2010, $0.37</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,476</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,480</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2010, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">73,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">73</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,777</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,850</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2010, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">67,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2010, $0.40</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,024</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,985</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2010, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">134,700</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">135,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2010, $0.45</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,500,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,122,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,125,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2010, $0.34</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">51,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">51,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Oct 2010, $0.36</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,651</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,393</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,037</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,037</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Nov 2010, $0.31</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,340</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,389</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Nov 2010, $0.31</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,119</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,981</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Nov 2010, $0.30</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,228</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,232</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Nov 2010, $0.30</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Exercise of stock options for cash, Jan 2011, $0.001</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">576,752</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">577</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">577</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, Dec 2010, $0.29-0.33</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,520,253</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,520</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">783,278</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">785,798</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2010, $0.32</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,276</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,280</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered Dec 2010, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,766</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">24,766</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2010, $0.30</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,950</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,980</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2010, $0.29</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Dec 2010, $0.29</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">28,786</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,388</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Oct 2010, $0.37</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,476</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,480</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement,Jan 2011, $0.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,720,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">12,720</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">332,280</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">345,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Dec 2010, $0.31</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">46,350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">46,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jan 2011, $0.28</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,189</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,979</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jan 2011, $0.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">37,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Jan 2011, $0.28</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,588</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,386</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,265</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,265</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Feb 2011, $0.23</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,123</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,381</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Feb 2011, $0.23</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,647</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">26</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,974</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Feb 2011, $0.24</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">956</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">960</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2011, $0.21</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">300</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,700</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered Mar 2011, $0.282</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">692,010</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">692,010</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered Mar 2011, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,959</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,959</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Mar 2011, $0.24</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,479</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,975</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Mar 2011, $0.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,285</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,383</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock for cash pursuant to private placement, Mar 2011, $0.25</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,056,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,056</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">174,408</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">178,464</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2011, $0.23</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">26,557</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,973</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Apr 2011, $0.22</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,450</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Apr 2011, $0.22</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,130</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,378</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Stock-based compensation - stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,265</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">29,265</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation May 2011, $0.21</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">39,618</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,377</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2011, $0.23</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">155,556</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">156</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34,845</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2011, $0.22</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27,059</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">27</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,973</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered May 2011, $0.21</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered June 2011, $0.15</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,750</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,900</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of options in exchange for the services rendered Jun 2011, $0.64</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,725</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,725</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered Jun 2011, $0.18</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,569</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,966</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation Jun 2011, $0.17</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,050</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,367</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,417</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable, Jun 2011, $0.19-0.23</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">499,313</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">499</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">102,148</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">102,647</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Preferred Stock, July 2011 (see Note 12)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,575</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with conversion of $1,288,000 of $2,575,000 Preferred Stock, July 2011</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,288</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,586,665</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,587</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(8,587</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(0</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Preferred Stock Dividend, July 2011</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(766,417</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(766,417</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in connection with preferred stock make whole payments , July 2011</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,323,083</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,323</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">345,437</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">347,760</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered July 2011, $0.14</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">41,827</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,958</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered July 2011, $0.13</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">150</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,350</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in exchange for the services rendered July 2011, $0.15</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">440,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">440</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(440</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as employee compensation July 2011, $0.13</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63,336</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">63</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,353</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,416</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Net Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(21,675,867</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(21,675,867</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Other comprehensive income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-left: 27pt; padding-bottom: 2px; text-indent: -9pt; text-align: left">Currency translation adjustment</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">85,392</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">85,392</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-left: 36pt; padding-bottom: 2px; text-indent: -9pt; text-align: left">Total comprehensive income (loss)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(21,675,867</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">85,392</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(21,590,475</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="padding-bottom: 4px; text-indent: 0pt; text-align: left">Balance at July 31, 2011</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,287</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">308,519,768</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">308,520</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">338,124,525</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(347,744,756</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">869,575</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(8,442,136</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD></TR>
</TABLE>
<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated Financial
Statements are an integral part of these statements.</P>

<P STYLE="margin: 0pt 0">&#160;</P>

<!-- Field: Page; Sequence: 116; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>&#160;</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>CONSOLIDATED STATEMENTS
OF CASH FLOWS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Cumulative&#160;From</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10" NOWRAP STYLE="text-align: center; text-indent: 0pt">For&#160;the&#160;Twelve&#160;Months</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">November&#160;2,&#160;1995</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="10" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Ended&#160;July&#160;31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="padding-bottom: 2px; text-align: center; text-indent: 0pt">(Date&#160;of&#160;Inception)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2009</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">to&#160;July&#160;31,&#160;2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Cash Flows From Operating Activities:</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 52%; padding-left: 9pt; text-indent: 0pt">Net loss</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">(21,675,867</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">(25,279,940</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">(45,812,228</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">(344,683,282</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Adjustments to reconcile net loss to net cash used in operating activities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Depreciation and amortization</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">742,961</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">780,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">805,806</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,295,882</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Minority interest share of loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(3,038,185</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Reduction of notes receivable - common stock in exchange for services rendered</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">423,882</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Write-off of uncollectible notes receivable - common stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">391,103</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Write-off of deferred offering costs</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,406,196</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Write-off of abandoned patents</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">913,196</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Loss on disposal of property and equipment</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">35,878</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">36,789</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Loss on extinguishment of debt</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,134,069</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Common stock issued as employee compensation</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,999</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">101,002</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">198,128</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,881,394</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Amortization of options and option modifications as stock compensation</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">936,465</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,765,381</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34,418</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,808,842</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Common stock issued for services rendered</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,990,005</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,755,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,536,431</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,807,834</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Amortization of prepaid services in conjunction with common stock issuance</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">138,375</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Non-cash compensation expense</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,390</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Stock options and warrants issued for services rendered</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">591,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,956,723</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Issuance of warrants as additional exercise right inducement</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,437,909</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Preferred stock issued for services rendered</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Treasury stock redeemed for non-performance of services</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(138,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Amortization of deferred debt issuance costs and loan origination fees</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">717,694</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,405,629</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Amortization of discount on convertible debentures</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,931,481</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,345,592</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Common stock issued for interest on convertible debentures &amp; preferred stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">473,055</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">757,514</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Interest on short-term advance</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,190</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Founders&#8217; shares transferred for services rendered</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">353,506</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Fees in connection with refinancing of debt</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">113,274</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Warrant repricing costs</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,198,604</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,198,604</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Change in fair value of derivative warrant liability</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,220,916</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,125,590</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(365,463</TD>
    <TD NOWRAP STYLE="text-align: left">) <FONT STYLE="vertical-align: text-top">(1)</FONT></TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Changes in operating assets and liabilities (excluding the effects of acquisition):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; text-indent: 0pt">Accounts receivable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,200</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(12,482</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,146</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(23,517</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; text-indent: 0pt">Miscellaneous receivables</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,812</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; text-indent: 0pt">Inventory</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,197,768</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(618,401</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">147,591</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(736,483</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; text-indent: 0pt">Other current assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">116,171</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">601,115</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(379,487</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(203,894</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; text-indent: 0pt">Accounts payable and accrued expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,811,120</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,878,296</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">462,520</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,242,556</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 27pt; text-indent: 0pt">Deferred revenue</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(28,152</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">252,042</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,325</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">362,727</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: 0pt">Other, net</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">110,317</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 36pt; text-indent: 0pt">Net Cash Used in Operating Activities</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(16,931,368</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(22,312,127</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(22,647,516</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(208,555,419</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-indent: 0pt; text-align: left">Cash Flows From Investing Activities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Purchase of property and equipment</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(52,383</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(159,708</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,385</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,807,023</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Costs incurred for patents</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(234,984</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(228,777</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(152,148</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,666,271</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Change in restricted cash</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">512,539</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Proceeds from maturity of short term investments</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,852,214</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">195,242,918</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Purchases of short-term investments</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(195,242,918</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Cash received in conjunction with merger</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">82,232</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Advances to Antigen Express, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(32,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Increase in officers&#8217; loans receivable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,126,157</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Change in deposits</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(652,071</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Change in notes receivable - common stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(91,103</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Change in due from related parties</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,222,390</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; padding-bottom: 2px; text-indent: 0pt">Other, net</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">89,683</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; padding-bottom: 2px; text-indent: 0pt">Net Cash (Used in) Provided By Investing Activities</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(287,367</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(388,485</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">8,698,681</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(10,912,561</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Cash Flows From Financing Activities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Proceeds from short-term advance</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">325,179</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Repayment of short-term advance</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(347,369</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Proceeds from issuance of long-term debt</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,005,609</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Repayment of long-term debt</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(116,632</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(100,030</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(82,682</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,241,188</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Repayment of obligations under capital lease</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(7,818</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(39,950</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(35,234</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(83,002</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Change in due to related parties</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">154,541</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Proceeds from exercise of warrants</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,574,062</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">109,170</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,698,281</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Proceeds from exercise of stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">577</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">56,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,002,493</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Proceeds from minority interest investment</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,038,185</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Proceeds from issuance of preferred stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,315,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,330,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Redemption of SVR preferred stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(100</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Proceeds from issuance of convertible debentures, net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,704,930</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Payment of costs associated with convertible debentures</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(722,750</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Repayments of convertible debentures</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,506,667</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(5,142,424</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Purchase of treasury stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(483,869</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Proceeds from issuance of common stock, net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,939,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,900,289</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,453,234</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">120,576,242</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; padding-bottom: 2px; text-indent: 0pt">Purchase and retirement of common stock</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(497,522</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Net Cash Provided by Financing Activities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,130,127</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,334,371</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,993,821</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">222,317,236</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Effect of Exchange Rates on Cash</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">6,535</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">50,063</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(85,448</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(50,459</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net (Decrease) Increase in Cash and Cash Equivalents</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(11,082,073</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(316,178</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(3,040,462</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,798,797</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Cash and Cash Equivalents, Beginning of Period</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">13,880,870</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">14,197,048</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">17,237,510</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Cash and Cash Equivalents, End of Period</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">2,798,797</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">13,880,870</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">14,197,048</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">2,798,797</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: -18pt; margin: 0 0 0 18pt; font: 10pt Times New Roman, Times, Serif">(1) - includes $5,981,403
as adjustment related to the adoption of FASB ASC Topic 815 in "Cumulative from November 2, 1995 (Date of Inception) to July 31,
2011" column. See Note 13 - Derivative Warrant Liability.</P>

<P STYLE="text-align: left; text-indent: -9pt; margin: 0 0 0 9pt; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: center; text-indent: -9pt; margin: 0 0 0 9pt; font: 10pt Times New Roman, Times, Serif">The Notes to Consolidated
Financial Statements are an integral part of these statements.</P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="text-indent: 0pt; margin: 0"><BR>
&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 1 - Organization
and Business</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Generex Biotechnology
Corporation (the Company) and its wholly-owned subsidiary Generex Pharmaceuticals, Inc. are engaged in the research and development
of drug delivery systems and technology.&#160;&#160;Since its inception, the Company has devoted its efforts and resources to the
development of a platform technology for the oral administration of large molecule drugs, including proteins, peptides, monoclonal
antibodies, hormones and vaccines, which historically have been administered by injection, either subcutaneously or intravenously.&#160;&#160;Oral-lyn<FONT STYLE="vertical-align: text-top">TM</FONT>
the first product based on this platform technology, is in the various stages of regulatory approval in different jurisdictions
around the world.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s
wholly-owned subsidiary, Antigen Express, Inc. (Antigen), is engaged in research and development of technologies and immunomedicines
for the treatment of malignant, infectious, autoimmune and allergic diseases.&#160; The Company&#8217;s immunomedicine products
work by stimulating the immune system to either attack offending agents (i.e., cancer cells, bacteria, and viruses) or to stop
attacking benign elements (i.e., self proteins and allergens). The immunomedicine products are based on two platform technologies
that were discovered by an executive officer of Antigen, the Ii-Key hybrid peptides and Ii-Suppression. These technologies are
expected to greatly boost immune cell responses which diagnose and treat the ailments and conditions.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company is a development
stage company, which has a limited history of operations and limited revenue to date. This revenue has been comprised mainly of
the sale of our confectionary products, although the Company has recognized $600,000 relating to upfront license fees for the signing
of license and distribution agreements for Generex Oral-lyn&#8482;.&#160;&#160;Additionally, the Company has several product candidates
that are in various research or early stages of pre-clinical and clinical development.&#160;&#160;There can be no assurance that
the Company will be successful in obtaining regulatory clearance for the sale of existing or any future products or that any of
the Company&#8217;s products will be commercially viable.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Going Concern</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The accompanying financial
statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities
and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception
and had an accumulated deficit at July 31, 2011 of approximately $350 million. The Company has funded its activities to date almost
exclusively from debt and equity financings.</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company will continue
to require substantial funds to continue research and development, including preclinical studies and clinical trials of its product
candidates, and to commence sales and marketing efforts, if the FDA or other regulatory approvals are obtained.&#160; Management&#8217;s
plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common
stock, preferred stock offerings, issuances of debt and convertible debt instruments.&#160; Management is also actively pursuing
industry collaboration activities including product licensing and specific project financing.&#160;</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">While the Company believes
that it will be successful in obtaining the necessary financing to fund its operations, meet revenue projections and manage costs,
there are no assurances that such additional funding will be achieved and that it will succeed in its future operations. The financial
statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts
of liabilities that might be necessary should the Company be unable to continue in existence.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 2 - Summary of Significant
Accounting Policies:</U></B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Principles of Consolidation</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The consolidated financial
statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained.&#160;&#160;For
those consolidated subsidiaries where the Company ownership is less than 100 percent, the outside stockholders&#8217; interests
are shown as minority interests.&#160;&#160;Effective December 17, 2004, the Company&#8217;s ownership in all consolidated subsidiaries
is 100 percent.&#160;&#160;All significant intercompany transactions and balances have been eliminated.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Development Stage
Company</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The accompanying consolidated
financial statements have been prepared in accordance with the provisions of FASB ASC Topic 915, &#8220;Development Stage Entities.&#8221;</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Cash and Cash Equivalents</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company considers<B>&#160;</B>all
highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Accounts Receivable</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Accounts receivable
are customer obligations due under normal trade terms. The Company sells its product to various distributors and retailers. The
Company performs ongoing credit evaluations of customers&#8217; financial condition and does not require collateral.</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Management reviews
accounts receivable on a monthly basis to determine collectability. Balances that are determined to be uncollectible are written
off to the allowance for doubtful accounts. The allowance for doubtful accounts contains a general accrual for estimated bad debts
and had a balance of zero at July 31, 2011 and 2010, however, actual write-offs may exceed the allowance.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Inventory</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Inventory consists
of raw materials, product components and finished goods.&#160;&#160;Inventory is stated at the lower of cost or market with cost
determined using the first-in first-out (&#8220;FIFO&#8221;) method. In evaluating whether inventory is stated at the lower of
cost or market, management considers such factors as the amount of inventory on hand and in the distribution channel, estimated
time required to sell such inventory, remaining shelf life and current and expected market conditions, including levels of competition.
As appropriate, a provision is recorded to reduce inventory to its net realizable value.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Property and Equipment</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Property and equipment
are recorded at cost less accumulated depreciation.&#160;&#160;Depreciation is provided on the straight-line method over the estimated
useful lives of the assets, which range from three to thirty years.&#160;&#160;Gains and losses on depreciable assets retired or
sold are recognized in the statement of operations in the year of disposal.&#160;&#160;Repairs and maintenance expenditures are
expensed as incurred.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Assets Held for
Investment</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Property held for investment
is recorded at cost less accumulated depreciation.&#160;&#160;Depreciation is provided on the straight-line method over the estimated
useful lives of the assets of thirty years.&#160;&#160;Gains and losses on depreciable assets retired or sold are recognized in
the statement of operations in the year of disposal.&#160;&#160;Repairs and maintenance expenditures are expensed as incurred.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Patents</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Capitalized patent
costs represent legal costs incurred to establish patents and a portion of the acquisition price paid attributed to patents upon
the acquisition of Antigen in August 2003.&#160; When patents reach a mature stage, any associated legal costs are comprised mostly
of maintenance fees and costs of national applications and are expensed as incurred.&#160; Capitalized patent costs are amortized
on a straight line basis over the remaining life of the patent.&#160; As patents are abandoned, the net book value of the patent
is written off.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Impairment or Disposal
of Long-Lived Assets</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company assesses
the impairment of long-lived assets under FASB ASC Topic 360 whenever events or changes in circumstances indicate that the carrying
value may not be recoverable.&#160;&#160;For long-lived assets to be held and used, the Company recognizes an impairment loss only
if its carrying amount is not recoverable and exceeds its fair value.&#160;&#160;The carrying amount of the long-lived asset is
not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the
asset.&#160;&#160;There were no disposals relating to long-lived assets in the fiscal years ended July 31, 2011, 2010 and 2009
and no impairments relating to long-lived assets in the fiscal years ended July 31, 2010 and 2009.&#160;&#160;In the fiscal year
ended July 31, 2011, the Company recorded a write down of $35,878 on certain fixed assets.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Derivative Warrant
Liability</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s
derivative warrant instruments are measured at fair value using an accepted valuation model which takes into account, as of the
valuation date, factors including the current exercise price, the expected life of the warrant, the current price of the underlying
stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the term of the warrant.&#160;&#160;The
Company recognizes all of its warrants with price protection in its consolidated balance sheet as liabilities depending on the
rights or obligations under the contracts.&#160;&#160;The liability is revalued at each reporting period and changes in fair value
are recognized currently in the consolidated statements of operations under the caption &#8220;Change in fair value of derivative
warrant liability.&#8221; See <I>Note 13 &#8211; Derivative Liabilities</I>.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Revenue Recognition</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Revenues from the sale
of commercial products are recognized at the time title of goods passes to the buyer and the buyer assumes the risks and rewards
of ownership. Certain product sales are made to retailers under agreements allowing for a right to return unsold products. In accordance
with FASB ASC Topic 605, recognition of revenue on all sales to these retailers is deferred until the right of return expires,
the product is sold to a third party or a provision for returns can be reasonably estimated based on historical experience. The
cost of inventory under these sales is considered to be a consigned inventory until the revenue is recognized.&#160;&#160;Sales
are reported net of estimated returns and allowances, discounts, mail-in rebate redemptions and credit card chargebacks. If actual
sales returns, allowances, discounts, mail-in rebate redemptions or credit card chargebacks are greater than estimated by management,
additional expense may be incurred.</P>

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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Grant revenue is recognized
as the Company provides the services stipulated in the underlying grant based on the time and expenditures incurred.&#160;&#160;Amounts
received in advance of services provided are recorded as deferred revenue and amortized as revenue when the services are provided.&#160;&#160;The
Company received grant revenue of $488,959 in the fiscal year ended July 31, 2011 and recognized the full amount of the grant in
fiscal 2011, as the Company had already incurred all of the qualifying expenses and the amount was fully received.&#160;&#160;See
<I><U>Note 16 - Qualifying Therapeutic Discovery Project Program.</U></I></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Included in miscellaneous
income are fees received under licensing agreements.&#160;&#160;Nonrefundable fees received under licensing agreements are recognized
as revenue when received if the Company has no continuing obligations to the other party.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Rental income is recognized
as revenue in the period in which the related rental space is occupied.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Research and Development
Costs</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Expenditures for research
and development are expensed as incurred and include, among other costs, those related to the production of experimental drugs,
including payroll costs, and amounts incurred for conducting clinical trials.&#160;&#160;Amounts expected to be received from governments
under research and development tax credit arrangements are offset against current research and development expense.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Income Taxes</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Income taxes are accounted
for under the asset and liability method prescribed by FASB ASC Topic 740.&#160;&#160;These standards require a company to determine
whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the
position.&#160;&#160;If the more likely than not threshold is met, a company must measure the tax position to determine the amount
to recognize in the financial statements. Deferred income taxes are recorded for temporary differences between financial statement
carrying amounts and the tax basis of assets and liabilities.&#160;&#160;Deferred tax assets and liabilities reflect the tax rates
expected to be in effect for the years in which the differences are expected to reverse.&#160;&#160;A valuation allowance is provided
if it is more likely than not that some or all of the deferred tax asset will not be realized.&#160;&#160;At<B>&#160;</B>July 31,
2011 and 2010, the Company had a full valuation allowance equal to the amount of the net deferred tax asset.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company adopted
the FASB guidance concerning accounting for uncertainty in income taxes, which clarifies the accounting and disclosure for uncertainty
in tax positions as of August 1, 2007. The guidance requires that the Company determine whether it is more likely than not that
a tax position will not be sustained upon examination by the appropriate taxing authority. If a tax position does not meet the
more likely than not recognition criterion, the guidance requires that the tax position be measured at the largest amount of benefit
greater than 50 percent not likely of being sustained upon ultimate settlement.&#160;&#160;Based on the Company&#8217;s evaluation,
management has concluded that there are no significant uncertain tax positions requiring recognition in the consolidated financial
statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Stock-Based Compensation</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company follows
FASB ASC Topic 718 which requires that new, modified and unvested share-based payment transactions with employees, such as grants
of stock options and restricted stock, be recognized in the financial statements based on their fair value at the grant date and
recognized as compensation expense over their vesting periods. The Company estimates the fair value of stock options as of the
date of grant using the Black-Scholes option pricing model and restricted stock based on the quoted market price. The Company also
follows the guidance in FASB ASC Topic 505 for equity based payments to non-employees for equity instruments issued to consultants
and other non-employees.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Net Loss per Common
Share</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Basic earnings per
share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding
during the period.&#160;&#160;Diluted earnings per share gives effect to all dilutive potential common shares outstanding during
the period.&#160;&#160;The computation of diluted earnings per share does not assume conversion, exercise or contingent exercise
of securities that would have an anti-dilutive effect on earnings.&#160;&#160;Refer to Note 17 for methodology for determining
net loss per share.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Comprehensive Income/(Loss)</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Other comprehensive
income/(loss), which includes only foreign currency translation adjustments, is shown in the Statement of Changes in Stockholders&#8217;
Equity.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Concentration of
Credit Risk</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company maintains
cash balances, at times, with financial institutions in excess of amounts insured by the Canada Deposit Insurance Corporation and
the U.S. Federal Deposit Insurance Corporation.&#160;&#160;Management monitors the soundness of these institutions and has not
experienced any collection losses with these financial institutions.</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">During the fiscal year
ended July 31, 2011, 49% of total net revenues were generated from three customers that individually represented over 10% of total
revenue each (Customer A &#8211; 17%, Customer B &#8211; 16%, Customer C &#8211; 15%).&#160;&#160;During the fiscal year ended
July 31, 2010, 41% of total net revenues were generated from two different customers from above that individually represented over
10% of total revenue each (Customer D &#8211; 27%, Customer E &#8211; 14%).&#160;&#160;During the fiscal year ended July 31, 2009,
78% of total net revenues were generated from two different customers from above, each individually representing over 10% of total
revenue (Customer F &#8211; 44%, Customer G &#8211; 34%).&#160;&#160;None of these seven customers had balances owing to the Company
at each of the respective fiscal year end dates.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Foreign Currency
Translation</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Foreign denominated
assets and liabilities of the Company are translated into U.S. dollars at the prevailing exchange rates in effect at the end of
the reporting period.&#160;&#160;Income statement accounts are translated at a weighted average of exchange rates which were in
effect during the period.&#160;&#160;Translation adjustments that arise from translating the foreign subsidiary&#8217;s financial
statements from local currency to U.S. currency are recorded in the other comprehensive loss component of stockholders&#8217; equity.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Fair Value of Financial
Instruments</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Fair value is defined
under FASB ASC Topic 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price)
in the principal or the most advantageous market for an asset or liability in an orderly transaction between participants on the
measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use
of unobservable inputs. The standard describes a fair value hierarchy based on the levels of inputs, of which the first two are
considered observable and the last unobservable, that may be used to measure fair value.&#160;&#160;The levels are as follows:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 63pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 9pt; text-indent: 0pt">&#183;</TD>
    <TD STYLE="text-align: justify; text-indent: 0pt">Level 1 - Quoted prices in active markets for identical assets or liabilities</TD></TR>
</TABLE>
<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 63pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 9pt; text-indent: 0pt">&#183;</TD>
    <TD STYLE="text-align: justify; text-indent: 0pt">Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities</TD></TR>
</TABLE>
<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 63pt">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 9pt; text-indent: 0pt">&#183;</TD>
    <TD STYLE="text-align: justify; text-indent: 0pt">Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s
financial instruments consist of cash and cash equivalents, accounts receivable, long-term debt, accounts payable and accrued expenses,
as well as derivative warrant liabilities and derivative additional investment rights. All of these items, except for the derivative
warrant liabilities and derivative additional investment rights, were determined to be Level 1 fair value measurements.&#160;&#160;The
carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and accrued expenses approximate their
respective fair values because of the short maturities of these instruments. Long-term debt balances were determined to approximate
their fair value as we believe the borrowing rates reflect the prevailing market rates available for similar debt instruments.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has determined
its derivative warrant liability and its derivative additional investment rights liability to be Level 2 fair value measurements
and has used the binomial lattice model valuation method to calculate the fair value of the derivative warrant liability as of
July 31, 2011 and 2010 and the derivative additional investment rights liability at July 31, 2011.&#160;&#160;See <I>Note 13 &#8211;
Derivative Liabilities</I>.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Use of Estimates</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The preparation of
financial statements in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting
periods.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company evaluates
its estimates, including those related to bad debts, inventories, long lived assets (including patents) impairment valuations,
debt obligations, derivatives, convertible preferred shares, long-term contracts, and contingencies and litigation, on an ongoing
basis. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable
under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or
conditions.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Critical accounting
estimates are reviewed and discussed with the audit committee of the board of directors.&#160;&#160;The Company considers an accounting
estimate to be critical if it requires assumptions to be made that were uncertain at the time the estimate was made and changes
in the estimate or different estimates that could have been selected could have a material impact on our results of operations
or financial condition.</P>

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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Effects of Recent
Accounting Pronouncements</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><I>Recently Adopted
Accounting Pronouncements</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In October 2009,
the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued guidance on multiple deliverable revenue arrangements which
eliminates the residual method of allocation and requires the relative selling price method when allocating deliverables of a multiple-deliverable
revenue arrangement. The determination of the selling price for each deliverable requires the use of a hierarchy designed to maximize
the use of available objective evidence including, vendor specific objective evidence, third party evidence of selling price, or
estimated selling price.&#160;&#160;This guidance is effective prospectively for revenue arrangements entered into or materially
modified in fiscal years beginning on or after June&#160;15, 2010, and must be adopted in the same period using the same transition
method. If adoption is elected in a period other than the beginning of a fiscal year, the amendments in these standards must be
applied retrospectively to the beginning of the fiscal year. This guidance was effective for the Company&#8217;s current fiscal
year beginning August&#160;1, 2010.&#160;&#160;The adoption of this guidance did not have a significant impact on the Company&#8217;s
consolidated financial statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><I>Recently Issued
Accounting Pronouncements</I></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In January 2010,
the FASB issued additional guidance on fair value measurements and disclosures which requires reporting entities to provide information
about movements of assets among Levels 1 and 2 of the three-tier fair value hierarchy established by the existing guidance.&#160;&#160;The
guidance is effective for any fiscal year that begins after December 15, 2010, and it should be used for quarterly and annual filings.&#160;&#160;The
Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In May 2011, the FASB
issued further guidance on fair value measurements and disclosures which requires the categorization by level for items that are
only required to be disclosed at fair value and information about transfers between Level 1 and Level 2. In addition, the update
provides guidance on measuring the fair value of financial instruments managed within a portfolio and the application of premiums
and discounts on fair value measurements. The guidance requires additional disclosure for Level 3 measurements regarding the sensitivity
of fair value to changes in unobservable inputs and any interrelationships between those inputs. The guidance is effective for
interim and annual periods beginning after December 15, 2011. The Company is currently evaluating the impact of this new accounting
guidance on its consolidated financial statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In June 2011, the FASB
issued guidance regarding the presentation of Comprehensive Income within financial statements.&#160;&#160;The guidance is effective
for interim and annual periods beginning after December 15, 2011. The Company is currently evaluating the impact of this new accounting
guidance on its consolidated financial statements.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 3 - Property and
Equipment</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The costs and accumulated
depreciation of property and equipment are summarized as follows:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Land</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">237,969</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">220,409</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Buildings and Improvements</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,508,288</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,396,990</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Furniture and Fixtures</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">149,540</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">159,739</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Office Equipment</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">201,314</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">210,379</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Lab Equipment</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">4,614,656</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">4,438,268</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Total Property and Equipment</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,711,767</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,425,785</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Less:&#160;&#160;Accumulated Depreciation</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">5,439,900</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">5,084,377</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Property and Equipment, Net</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,271,867</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,341,408</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Depreciation expense
related to property and equipment amounted to $172,250, $238,253 and $298,407 for the years ended July 31, 2011, 2010 and 2009,
respectively.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 4 - Assets Held for
Investment, Net</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The costs and accumulated
depreciation of assets held for investment are summarized as follows:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Assets Held For Investment</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">5,100,519</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">4,724,147</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Less:&#160;&#160;Accumulated Depreciation</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,465,590</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,221,037</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Assets Held for Investment, Net</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">3,634,929</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">3,503,110</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">These assets are held
as collateral for long term debt (see Note 11).&#160;&#160;Depreciation expense on assets held for investment amounted to $141,686,
$134,251 and $117,515 for the years ended July 31, 2011, 2010 and 2009, respectively.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s
intent is to hold this property for investment purposes and collect rental income.&#160;&#160;Included in income from rental operations,
net is $582,974, $407,809 and $497,858 of rental income and $233,516, $201,234 and $177,311 of rental expenses, including the depreciation
expense amounts above relating to assets held for investment, for the years ended July 31, 2011, 2010 and 2009, respectively.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">On August 26, 2011,
the Company sold two of its commercial properties held as investments for gross proceeds of $1,809,926.&#160;&#160;These properties
had a net book value of $1,073,837 and the resulting gain on sale of these investment properties will be recognized in the first
quarter of fiscal 2012.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 5 - Patents</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The costs and accumulated
amortization of patents are summarized as follows:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Patents</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">6,487,389</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">6,221,777</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Less:&#160;&#160;Accumulated Amortization</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">3,137,801</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">2,688,089</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Patents, Net</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">3,349,588</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">3,533,688</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Weighted Average Life</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; text-indent: 0pt">11.2 years</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; text-indent: 0pt">11.7 years</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Amortization expense
amounted to $430,650, $407,746, $390,773 for the years ended July 31, 2011, 2010 and 2009, respectively. Amortization expense is
expected to be approximately $414,000 per year for the years ended July 31, 2012 through 2016.&#160;&#160;During the years ended
July 31, 2011, 2010 and 2009, the Company did not write off any patents.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 6 - Income Taxes</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has incurred
losses since inception, which have generated net operating loss (&#8220;NOL&#8221;) carryforwards.&#160;&#160;The NOL carryforwards
arise from both United States and Canadian sources.&#160;&#160;Pretax losses arising from domestic operations (United States) were
$15,060,207, $18,127,536 and $40,064,006 for the years ended July 31, 2011, 2010 and 2009, respectively.&#160;&#160;Pretax losses
arising from foreign operations (Canada and Bermuda) were $6,615,660, $7,152,404 and $5,748,222 for the years ended July 31, 2011,
2010 and 2009, respectively.&#160;&#160;As of July 31, 2011, the Company has NOL carryforwards in Generex Biotechnology Corporation
of approximately $191,475,000, which expire in 2018 through 2031, in Generex Pharmaceuticals Inc. of approximately $45,391,000,
which expire in 2012 through 2031, and in Antigen Express, Inc. of approximately $25,226,000, which expire in 2016 through 2031.&#160;&#160;These
loss carryforwards are subject to limitation due to the acquisition of Antigen and may be limited in future years due to certain
structural ownership changes which have occurred over the last several years, related to the Company&#8217;s equity and convertible
debenture financing transactions.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">For the years ended
July 31, 2011, 2010 and 2009, the Company&#8217;s effective tax rate differs from the federal statutory rate principally due to
net operating losses and other temporary differences for which no benefit was recorded.&#160;&#160;Additionally for the year ended
July 31, 2011, the Company has taken into account a decrease in the Canadian effective tax rate from 36.12% to 25% as of January
2012, which will reduce the future value (prior to valuation allowances) of the NOL carryforwards of the Canadian subsidiary.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Deferred income taxes
consist of the following:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Net operating loss carryforwards</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">85,026,388</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">84,804,372</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Other timing difference</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">5,680</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">929,056</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: 0pt">Total Deferred Tax Assets</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">85,032,068</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">85,733,428</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Valuation Allowance</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(84,336,137</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(84,966,128</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Deferred Tax Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Intangible assets</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(623,708</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(719,846</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 9pt; text-indent: 0pt">Other timing difference</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(72,223</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(47,454</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 18pt; text-indent: 0pt">Total Deferred Tax Liabilities</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(695,931</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(767,300</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Net Deferred Income Taxes</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">A reconciliation of
the United States Federal Statutory rate to the Company&#8217;s effective tax rate for the years ended July 31, 2011, 2010 and
2009 is as follows:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2009</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 55%; text-indent: 0pt">Federal statutory rate</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">(34.0</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)%</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">(34.0</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)%</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">(34.0</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">)%</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Increase (decrease) in income taxes resulting from:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Imputed interest income on intercompany receivables from foreign subsidiaries</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3.0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2.0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1.0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Nondeductible items</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4.0</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(6.0</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5.0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 18pt; text-indent: -9pt">Change in Canadian NOL carryforwards due to future tax rate changes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20.0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Other timing differences</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18.0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3.0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10.0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; padding-left: 9pt; text-indent: 0pt">Change in valuation allowance</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(3.0</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">35.0</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">18.0</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Effective tax rate</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">%</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">%</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">%</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">As of July 31, 2011,
the Company had no unrecognized tax benefits, and no adjustment to its financial position, results of operations or cash flows
was required. The Company does not expect that unrecognized tax benefits will increase within the next twelve months. The Company
records interest and penalties related to tax matters within other expense on the accompanying consolidated statement of operations.
These amounts are not material to the consolidated financial statements for the periods presented.&#160;&#160;Generally, tax years
2008 to 2011 remain open to examination by the Internal Revenue Agency or other tax jurisdictions to which the Company is subject.
The Company&#8217;s Canadian tax returns are subject to examination by federal and provincial taxing authorities in Canada. Generally,
tax years 2003 to 2011 remain open to examination by the Canadian Customs and Revenue Agency or other tax jurisdictions to which
the Company is subject.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 7 - Inventory</U></B>:</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Inventory consists
of the following:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Raw materials</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">502,195</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">962,035</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Finished goods</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">215,247</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">949,848</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 18pt; text-indent: 0pt">Total</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">717,442</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,911,883</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE ALIGN="CENTER" BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45pt">&nbsp;</TD>
    <TD STYLE="text-align: left">At July 31, 2011 and 2010, approximately 70% and 60%, respectively, of the inventory related to the Company&#8217;s Oral-lyn&#8482; product, while the remainder in each year related to the Company&#8217;s over-the-counter confectionary products.</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 8 - Accounts Payable
and Accrued Expenses</U></B>:</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Accounts payable and
accrued expenses consist of the following:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Accounts Payable &amp; Accruals &#8211; General and Administrative</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">4,805,091</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">3,480,340</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accounts Payable &amp; Accruals &#8211; Research and Development</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,151,333</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,621,514</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accounts Payable &amp; Accruals &#8211; Selling and Marketing</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">434,265</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">415,166</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Accrued Make Whole Payments on Convertible Preferred Stock (see Note 12)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">347,490</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Executive Compensation</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">37,694</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 18pt; text-indent: 0pt">Total</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">7,738,179</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">6,554,714</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 9 - Commitments and
Contingent Liabilities</U>:</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Leases</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has entered
into various operating lease agreements for the use of operating space, vehicles and office equipment.</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Aggregate minimum annual
lease commitments of the Company under non-cancelable operating leases as of July 31, 2011 are as follows:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: black 2px solid; text-indent: 0pt">Year</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 80%; text-indent: 0pt">2012</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 17%; text-align: right">125,339</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2013</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,621</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2014</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,849</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">2015 and thereafter</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: 0pt">Total Minimum Lease Payments</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">145,809</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Lease expense amounted
to approximately $210,000, $200,000 and $102,000 for the years ended July 31, 2011, 2010 and 2009, respectively.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The preceding data
reflects existing leases and does not include replacements upon their expiration.&#160;&#160;In the normal course of business,
operating leases are generally renewed or replaced by other leases.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Rental Operations</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company sub-leases
a portion of the floor that it owns in an office building located in Toronto, Canada.&#160;&#160;The following represents the approximate
minimum amount of sublease income under current lease agreements to be received in years ending after July 31, 2011:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: black 2px solid; text-indent: 0pt">Year</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 80%; text-indent: 0pt">2012</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 17%; text-align: right">51,071</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2013</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">28,601</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2014</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,201</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2015</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,144</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">2016 and thereafter</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">7,533</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: 0pt">Total</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">114,550</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Assets Held for
Investment</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company leases
two commercial buildings located in Brampton and Mississauga, Canada, and units of property that it owns located in Toronto, Canada.&#160;&#160;On
August 26, 2011, the Company sold the two commercial buildings located in Brampton and Mississauga.&#160;&#160;The following represents
the approximate minimum amount in lease income under current lease agreements to be received in years ending after July 31, 2011
after adjustment for the August 2011 building sales:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: black 2px solid; text-indent: 0pt">Year</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 80%; text-indent: 0pt">2012</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 17%; text-align: right">301,060</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2013</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">236,566</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2014</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">211,026</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2015</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">180,562</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2016</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">153,771</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Thereafter</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">650,562</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; padding-bottom: 4px; text-indent: 0pt">Total</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,733,547</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Supply Agreements</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">On December 7, 2009,
the Company entered into a long-term agreement with sanofi-aventis Deutschland GmbH (&#8220;sanofi-aventis&#8221;).&#160;&#160;Under
this agreement, sanofi-aventis will manufacture and supply recombinant human insulin to the Company in the territories specified
in the agreement.&#160;&#160;Through this agreement, the Company will procure recombinant human insulin crystals for use in the
production of Generex Oral-lyn&#8482;.&#160;&#160;The terms of the supply agreement require the Company to make certain minimum
purchases of insulin from sanofi-aventis through the period ending December 31, 2011.&#160;To date, the Company has not met the
minimum purchase commitments under this agreement.&#160;&#160;After December 31, 2011, sanofi-aventis may terminate the agreement
due to the Company&#8217;s failure to meet such purchase commitments.&#160;&#160;Upon termination, the Company would be obligated
to pay sanofi-aventis for all materials and components that it has acquired or ordered to manufacture insulin based on the Company&#8217;s
forecasts or minimum purchase commitments, all related work-in-progress (at cost) and all finished insulin in inventory.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has a supply
agreement with Presspart Manufacturing Limited (&#8220;Presspart&#8221;), whereby the Company will purchase its entire requirements
for products to use in the administration of insulin through the buccal mucosa and shall not purchase the products or any metal
containers competitive to the products from any other person in exchange for an exclusive non-transferable royalty-free irrevocable
license to use the products.&#160;&#160;The contract shall continue for a minimum period of four contract years from the end of
the first contract year in which the total quantity of products purchased by the Company from Presspart exceeds 10,000,000 units,
and thereafter, shall continue until terminated by either party by giving twelve months written notice.&#160;&#160;As of July 31,
2011, the Company has not yet completed a contract year in which the total quantity has exceeded 10,000,000 units and as such the
expiration date of this contract cannot be determined.</P>

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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Pending Litigation</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In February 2001, a
former business associate of the former Vice President of Research and Development (&#8220;VP&#8221;) of the Company and an entity
known as Centrum Technologies Inc. (&#8220;CTI&#8221;) commenced an action in the Ontario Superior Court of Justice against the
Company and the VP seeking, among other things, damages for alleged breaches of contract and tortious acts related to a business
relationship between this former associate and the VP that ceased in July 1996. The plaintiffs&#8217; statement of claim also seeks
to enjoin the use, if any, by the Company of three patents allegedly owned by CTI. The three patents are entitled <I>Liquid Formulations
for Proteinic Pharmaceuticals</I>, <I>Vaccine Delivery System for Immunization, Using Biodegradable Polymer Microspheres</I>, and
<I>Controlled Releases of Drugs or Hormones in Biodegradable Polymer Microspheres</I>. It is the Company&#8217;s position that
the buccal drug delivery technologies which are the subject matter of the Company&#8217;s research, development, and commercialization
efforts, including Generex Oral-lyn&#8482; and the RapidMist&#8482; Diabetes Management System, do not make use of, are not derivative
of, do not infringe upon, and are entirely different from the intellectual property identified in the plaintiffs&#8217; statement
of claim. On July 20, 2001, the Company filed a preliminary motion to dismiss the action of CTI as a nonexistent entity or, alternatively,
to stay such action on the grounds of want of authority of such entity to commence the action. The plaintiffs brought a cross motion
to amend the statement of claim to substitute Centrum Biotechnologies, Inc. (&#8220;CBI&#8221;) for CTI. CBI is a corporation of
which 50 percent of the shares are owned by the former business associate and the remaining 50 percent are owned by the Company.
Consequently, the shareholders of CBI are in a deadlock. The court granted the Company&#8217;s motion to dismiss the action of
CTI and denied the plaintiffs&#8217; cross motion without prejudice to the former business associate to seek leave to bring a derivative
action in the name of or on behalf of CBI. The former business associate subsequently filed an application with the Ontario Superior
Court of Justice for an order granting him leave to file an action in the name of and on behalf of CBI against the VP and the Company.
The Company opposed the application. In September 2003, the Ontario Superior Court of Justice granted the request and issued an
order giving the former business associate leave to file an action in the name of and on behalf of CBI against the VP and the Company.
A statement of claim was served in July 2004. The Company is not able to predict the ultimate outcome of this legal proceeding
at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">On April 6, 2010, the
Company commenced legal proceedings against TheStreet.com, Inc. and Adam Feuerstein in the Supreme Court of the State of New York
(New York, NY) seeking $250,000,000 in damages for business defamation, product disparagement, and injurious falsehood.&#160;&#160;The
claims arise out of articles authored by Mr. Feuerstein and published on TheStreet.com website on March 19 and March 26, 2010.&#160;&#160;In
the complaint, the Company contends that the articles disseminate numerous defamatory statements about the Company, its management,
and its flagship product, Generex Oral-lyn&#8482;, and that the articles put forward several ostensible statements of fact that
are, in truth, misleading or outright misstatements made with malicious intent or with a reckless disregard for the truth.&#160;&#160;Defendants
have filed an answer denying the claims in the complaint and have served discovery requests on the Company.&#160;&#160;The Company
is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential
damages recovered, if any, from this legal proceeding.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In May 2011, Rose C.
Perri, the Company&#8217;s former Chief Operating Officer and Chief Financial Officer, commenced two proceedings against the Company.&#160;&#160;On
May 11, 2011, Ms. Perri filed a notice of application in the Ontario Superior Court of Justice, Commercial List, against the Company,
two of its affiliates (1097346 Ontario, Inc. and Generex Pharmaceuticals Inc.), three of the Company&#8217;s independent directors
(John P. Barratt, Nola Masterson and Brian T. McGee), the President and Chief Executive Officer (Mark A. Fletcher), the Chief Operating
Officer (David Brusegard) and the Acting Chief Financial Officer (Stephen Fellows).&#160;&#160;In the notice of application, Ms.
Perri seeks, among other things, a declaration that respondents&#8217; actions, including the termination of Ms. Perri&#8217;s
employment with the Company, have prejudiced her interest as a shareholder, officer and director of the Company, an order for the
production of certain financial records, and the appointment of an interim receiver for our two affiliates.&#160;&#160;On July
15, 2011, the court ordered that this matter be heard together with the action brought by Ms. Perri for wrongful termination as
described in the next paragraph.&#160;&#160;&#160;The Company intends to vigorously defend this action and is not able to predict
the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any,
from this legal proceeding.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">On May 20, 2011, Ms.
Perri filed a statement of claim (subsequently amended) in the Ontario Superior Court of Justice, naming as defendants the Company,
Mr. Barratt, Ms. Masterson, Mr. McGee, and Mr. Fletcher.&#160;&#160;In this action, Ms. Perri has alleged that defendants engaged
in discrimination, harassment, bad faith and infliction of mental distress in connection with the termination of her employment
with the Company.&#160;&#160;Ms. Perri is seeking damages in this action in excess of $7,000,000 for, among other things, breach
of contract, breach of fiduciary duty, violations of the Ontario Human Rights Code and aggravated and punitive damages.&#160;&#160;&#160;On
September 20, 2011, the defendants filed a statement of defense and counterclaim, also naming Time Release Corp., Khazak Group
Consulting Corp., and David Khazak, C.A. as defendants by counterclaim, and seeking damages of approximately $2.3 million in funds
that the defendants allege Ms. Perri wrongly caused the Company to pay to third parties in varying amounts over several years and
an accounting of certain third-party payments, plus interests and costs.&#160;&#160;The factual basis for the counterclaim involves
payments made by the Company to third parties believed to be related to Ms. Perri.&#160;&#160;The Company intends to defend this
action and pursue its counterclaim vigorously and is not able to predict the ultimate outcome of this legal proceeding at the present
time or to estimate an amount or range of potential loss, if any, from this legal proceeding.</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">On June 1, 2011, Golden
Bull Estates Ltd. filed a claim (subsequently amended) in the Ontario Superior Court of Justice, naming the Company, 1097346 Ontario,
Inc. and Generex Pharmaceuticals Inc. as defendants.&#160;&#160;The plaintiff, Golden Bull Estates, is controlled by Ms. Perri.&#160;&#160;The
plaintiff alleges damages in the amount of $550,000 for breach of contract, $50,000 for punitive damages, plus interest and costs.&#160;&#160;The
plaintiff&#8217;s claims relate to an alleged contract between the plaintiff and the Company for property management services for
certain Ontario properties owned by the Company.&#160;&#160;The Company terminated the plaintiff&#8217;s property management services
in April 2011.&#160;&#160;Pleadings are closed, and the Company has served a motion for summary judgment.&#160;&#160;No date for
a hearing on this matter has been scheduled.&#160;&#160;The Company is not able to predict the ultimate outcome of this legal proceeding
at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In August 2011, the
estate of Antonio Perri, the late father of Ms. Perri, commenced an action against Generex Pharmaceuticals, Inc., the law firm
of Brans, Lehun, Baldwin LLP and William Lehun in the Ontario Superior Court of Justice claiming that the estate is entitled to
the proceeds of sale (approximately $1,730,000) received by the Company on its sale of two properties to Golden Bull Estates, a
company controlled by Ms. Perri.&#160;&#160;The suit alleges that no consideration was received when the Company purchased the
two properties from Antonio Perri in 1998.&#160;&#160;The Company intends to respond to this statement of claim and to defend this
action vigorously. The Company is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate
an amount or range of potential loss, if any, from this legal proceeding.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company is involved
in certain other legal proceedings in addition to those specifically described herein. Subject to the uncertainty inherent in all
litigation, the Company does not believe at the present time that the resolution of any of these legal proceedings is likely to
have a material adverse effect on the Company&#8217;s financial position, operations or cash flows.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">With respect to all
litigation, as additional information concerning the estimates used by the Company becomes known, the Company reassesses its position
both with respect to accrued liabilities and other potential exposures.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Employment Agreements</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">As of July 31, 2011,
the Company had an employment arrangement with its President &amp; Chief Executive Officer, whereby the Company is required to
pay an annual base salary of $475,000.&#160;&#160;The term of service for this executive extended through March 16, 2008, which
term had not been formally extended as of July 31, 2011.&#160;&#160;In the event the agreement is terminated, by reason other than
cause, death, voluntary retirement or disability, the Company is required to pay the employee in one lump sum twelve months base
salary and the average annual bonus.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">As of July 31, 2011,
the Company has an employment agreement with an executive expiring March 2012, whereby the Company is required to pay an annual
base salary of $225,000.&#160;&#160;In the event the agreement is terminated, by reason other than cause, death, voluntary retirement
or disability, the Company is required to pay the employee in one lump sum twelve months base salary and the average annual bonus.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">As of July 31, 2011,
the Company has three at will employment agreements with Antigen employees requiring the Company to pay an annual aggregate salary
of $503,341 to the three employees.&#160;&#160;In the event any agreement is terminated by reason other than death, disability,
a voluntary termination not for good reason (as defined in the agreement) or a termination for cause, the Company is required to
pay the employee severance in accordance with the terms of the individual employment agreement.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Collaboration Agreements</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has a research
and development agreement with Fertin Pharma A/S (Fertin) whereby the parties have established collaboration for the development
of a metformin medicinal chewing gum for the treatment of Type-2 diabetes mellitus and obesity.&#160;&#160;The agreement includes
certain milestone payments required of the Company upon Fertin&#8217;s completion of various development phases.&#160;&#160;The
Company is required to pay all development costs related to the development of the product together with royalty payments amounting
to five percent of the sale or licensing of the products.&#160;&#160;In lieu of receiving reimbursement for development costs,
Fertin, at its discretion and upon written notice, may elect to receive royalty payments amounting to twenty-five percent of the
sale or licensing of the products.&#160;&#160;The agreement shall remain in effect ten years from the date of market introduction
and commercial sale.&#160;&#160;Either party may terminate the agreement by providing sixty days written notice.&#160;&#160;Through
the fiscal year ended July 31, 2011, the Company has not paid any milestone or royalty payments relating to this agreement and
has paid approximately $223,000, in the aggregate, to Fertin under the agreement for materials and development costs.</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><I>Amarantus - Letter
of Agreement</I></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">On May 30, 2011, the
Company entered into a binding letter agreement with Amarantus Biosciences, Inc. (&#8220;Amarantus&#8221;), relating to an arrangement
for intellectual property licensing and collaboration.&#160;&#160;Pursuant to the letter agreement, definitive agreements were
to be delivered on July 15, 2011, but definitive agreements have not yet been delivered or signed to date.&#160;&#160;Under the
letter agreement, the Company will grant an exclusive, worldwide license to its buccal drug delivery technologies to Amarantus
for use with certain of Amarantus&#8217; proprietary technologies in exchange for a non-refundable license fee of $10 million.&#160;&#160;&#160;Amarantus
will bear all costs associated with such use, but the Company will retain ownership of any improvements to its buccal drug delivery
technologies.&#160;&#160;The license fee will be payable in whole or in part in shares of Amarantus common stock.&#160;&#160;The
number of shares of Amarantus common stock to be issued to the Company on the closing date in payment of the license fee may not
exceed 9.99% of Amarantus&#8217; issued and outstanding shares of common stock.&#160;&#160;To the extent the license fee is not
paid by Amarantus common stock, the remaining balance will be paid pursuant to a Promissory Note to be issued to the Company for
the balance of the license fee.&#160;&#160;The Company will have the option to terminate the letter agreement if, on the closing
date, either: (1) the number of shares of Amarantus common stock issued in part payment of the license fee is less than 7,125,000
shares, or (2) the amount of the Promissory Note issued in payment of the remainder of the license fee is more than $5,000,000.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In addition, the parties
will collaborate in the research and development of certain of Amarantus&#8217; proprietary technologies for application in the
treatment of diabetes.&#160;&#160;The Company will fund direct expenditures incurred in the collaborative research and development
in accordance with a budget to be agreed upon, up to a maximum of $5,000,000 over a period of three years.&#160;&#160;The Company
will have the option to acquire licenses to certain Amarantus technologies in connection with collaborative developments in the
treatment of diabetes.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The letter agreement
provides that Amarantus will pay the Company a 10% royalty on future gross sales of products which use the Company&#8217;s technologies,
in addition to milestone payments upon achieving certain levels of gross sales and royalties representing a portion of any licensing
or sublicensing arrangements that Amarantus enters into for the commercialization of products which use the Company&#8217;s technologies.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 10 - Related Party
Transactions</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Through April 20, 2011,
the Company used a management company to manage all of its real estate properties. The property management company is owned by
two of the Company&#8217;s former executive officers.&#160;&#160;For the years ended July 31, 2011, 2010 and 2009, the Company
has paid the management company $40,778, $55,691 and $47,981, respectively, in management fees.&#160;&#160;The arrangement with
the management company was formally terminated on April 20, 2011 and no further property management fees will be paid to this company.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 11 - Long-Term Debt</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Long-term debt consists
of the following:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Mortgage payable - interest at 6.822 percent per annum, monthly principal and interest payments of $2,447, due August 2011, secured by real property located at 98 Stafford Drive, Brampton, Canada</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">264,908</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">$255,674</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Mortgage payable - interest at 6.822 percent per annum, monthly principal and interest payments of $3,947, due August 2011, secured by real property located at 1740 Sismet Road, Mississauga, Canada</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">427,255</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">412,362</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Mortgage payable - interest at 6.75 percent per annum, monthly payments of principal and interest of $6,317, due May 2015, secured by first mortgage over real property located at 17 Carlaw Avenue and 33 Harbour Square, Toronto, Canada</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">645,443</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">627,056</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Mortgage payable - interest at 10.0 percent per annum, monthly payments of principal and interest of $2,738, due November 2013, secured by real property located at 13-14, 11 Carlaw Avenue, Toronto, Canada</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">186,632</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">185,665</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Mortgage payable - interest at 8.5 percent per annum, monthly payments of interest only of $2,964, principal payment due August 2012 secured by real property located at 10-11, 11 Carlaw Avenue, Toronto, Canada</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">418,480</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">387,600</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Mortgage payable - interest at 5.91 percent per annum, monthly interest payments of $9,633, principal due April 2014, secured by secondary rights to real property located at 1-8, 11 Carlaw Avenue, Toronto, Canada</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,137,348</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,097,575</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Total Debt</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,080,066</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,965,932</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Less Current Maturities of Long-Term Debt</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,210,271</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,141,861</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Total Long-Term Debt</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,869,795</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,824,071</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Aggregate maturities
of long-term debt of the Company due within the next five years are as follows:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: black 2px solid; text-indent: 0pt">Year</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Amount</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 80%; text-indent: 0pt">2012</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 17%; text-align: right">1,210,271</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2013</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">106,545</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2014</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,226,510</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2015</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">34,240</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">2016</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">502,500</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Thereafter</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 9pt; text-indent: 0pt">Total</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">3,080,066</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE ALIGN="CENTER" BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45pt">&nbsp;</TD>
    <TD STYLE="text-align: left">The mortgages related to the properties at 98 Stafford Drive, Brampton and 1740 Sismet Road, Mississauga were discharged on August 26, 2011, in conjunction with the sales of those properties.</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE ALIGN="CENTER" BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45pt">&nbsp;</TD>
    <TD STYLE="text-align: left">For the years ended July 31, 2011, 2010 and 2009, the Company incurred $205,539, $206,838 and $193,351, respectively in interest expense on its long-term debt.</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 12 - Series A 9%
Convertible Preferred Stock</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has authorized
5,500 shares of Series A 9% Convertible Preferred Stock with a stated value of one-thousand ($1,000.00) per share.&#160;&#160;Pursuant
to a securities purchase agreement dated July 8, 2011, the Company sold an aggregate of 2,575 shares of convertible preferred stock,
as well as 17,166,666 accompanying warrants. An aggregate of 17,166,667 shares of the Company&#8217;s common stock are issuable
upon conversion of the convertible preferred stock which was issued at the initial closing.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Subject to certain
ownership limitations, the convertible preferred stock is convertible at the option of the holder at any time into shares of the
Company&#8217;s common stock at an effective conversion price of $0.15 per share, and will accrue a 9% dividend until July 8, 2014
and, beginning on July 8, 2014 and on each one year anniversary thereafter, such dividend rate will increase by an additional 3%.
The dividend will be payable quarterly on September 30, December 31, March 31 and June 30, beginning on September 30, 2011 and
on each conversion date in cash, or at the Company&#8217;s option, in shares of common stock. In the event that the convertible
preferred stock is converted prior to July 8, 2014, the Company will pay the holder of the converted preferred stock an amount
equal to $270 per $1,000 of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid
on such converted preferred stock before the relevant conversion date. Such &#8220;make-whole payment&#8221; may be made in cash
or, at the Company&#8217;s option, in shares of its common stock. In addition, beginning July 8, 2014, the Company will pay dividends
on shares of preferred stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than
dividends in the form of common stock) actually paid on shares of the common stock when, and if such dividends are paid. The Company
will incur a late fee of 18% per annum on unpaid dividends.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The conversion price
of the convertible preferred stock is subject to adjustment in the case of stock splits, stock dividends, combinations of shares,
similar recapitalization transactions and certain pro-rata distributions to common stockholders. The conversion price will also
be adjusted if the Company sells or grants any shares of common stock or securities convertible into, or rights to acquire, common
stock at an effective price per share that is lower than the then conversion price, except in the event of certain exempt issuances.
In addition, the holders of convertible preferred stock will be entitled to receive any securities or rights to acquire securities
or property granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders
had converted all of their shares of convertible preferred stock. In the event of a fundamental transaction, such as a merger,
consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the holders of convertible preferred
stock will be entitled to receive, upon conversion of their shares, any securities or other consideration received by the holders
of the Company&#8217;s common stock pursuant to the fundamental transaction.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company may become
obligated to redeem the convertible preferred stock in cash upon the occurrence of certain triggering events, including the failure
to provide an effective registration statement covering shares of common stock issuable upon conversion of the convertible preferred
stock, material breach of certain contractual obligations to the holders of the convertible preferred stock, the occurrence of
a change in control of the Company, the occurrence of certain insolvency events relating to the Company, or the failure of the
Company&#8217;s common stock to continue to be listed or quoted for trading on one or more specified United States securities exchanges
or regulated quotation service. Upon the occurrence of certain triggering events, each holder of convertible preferred stock will
have the option to redeem such holder&#8217;s shares of convertible preferred stock for a redemption price payable in shares of
common stock or receive an increased dividend rate of 18% on all of such holder&#8217;s outstanding convertible preferred stock.</P>

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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In conjunction with
the issuance of the convertible preferred stock, the Company also issued 17,166,666 warrants to the investors.&#160;&#160;Subject
to certain ownership limitations, the warrants will be exercisable at any time after their date of issuance and on or before the
fifth-year anniversary thereafter at an exercise price of $0.25 per share of common stock. The exercise price of the warrants and,
in some cases, the number of shares issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends,
combinations of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The exercise
price and number of shares of common stock issuable upon exercise will also be adjusted if the Company sells or grants any shares
of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant holders will be entitled
to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders
of its common stock to the same extent as if such holders had exercised all of their warrants. In the event of a fundamental transaction,
such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the warrant
holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received by the holders
of the Company&#8217;s common stock pursuant to the fundamental transaction.&#160;&#160;These warrants have been classified as
derivative liabilities and are described further in<I> Note 13 &#8211; Derivative Liabilities</I><B>.</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In addition, until
the first anniversary of date of the securities purchase agreement, each investor may, in its sole determination, elect to purchase,
severally and not jointly with the other investors, in one or more purchases, in the ratio of such investor's original subscription
amount to the original aggregate subscription amount of all investors, additional units consisting of convertible preferred stock
and warrants at a purchase price of $1,000 per unit with an aggregate subscription amount thereof of up to $2,575,000, which units
will have terms identical to the units of convertible preferred stock and warrants issued in connection with the July 2011 closing.&#160;&#160;These
additional investment rights of the investors have been classified as derivative liabilities and are described further in<I> Note
13 &#8211; Derivative Liabilities</I><B>.</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">As of July 31, 2011,
8,586,665 shares of common stock had been issued upon the conversion of 1,288 shares of convertible preferred stock and 2,323,083
shares of common stock were issued as &#8220;make whole payments&#8221; on such conversions of the convertible preferred stock.&#160;&#160;As
of July 31, 2011, there remained 1,287 shares of convertible preferred stock outstanding which are discounted at 100% of their
face value of $1,287,000 and are classified in equity on the consolidated balance sheet under the caption &#8220;Series A 9% Convertible
Preferred Stock&#8221;.&#160;&#160;The &#8220;make whole payments&#8221; on the remaining convertible preferred stock in the amount
of $347,490 are included in Accounts Payable and Accrued Expenses (see Note 8).&#160;&#160;The total make whole payments at the
date of issuance, in the amount of $695,250, were accrued on the issuance date, with such amount allocated as described directly
below, when accounting for the initial proceeds from the convertible preferred stock financing.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><I>Accounting for proceeds
from the convertible preferred stock financing</I></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The net cash proceeds
from the convertible preferred stock financing were $2,315,000.&#160;&#160;The proceeds from the financing were&#160;&#160;allocated
first to the warrants that were issued in the financing, second to the additional investment rights associated with the financing
and third to the make whole payments.&#160;&#160;As the assigned fair values were greater than the net cash proceeds from the transaction,
the excess was treated as a &#8220;deemed dividend&#8221; for accounting purposes and is reported on the Company&#8217;s consolidated
statement of operations under the caption &#8220;Preferred Stock Dividend&#8221;.&#160;&#160;The calculation methodologies for
the fair values of the derivative warrant liability and the derivative additional investment rights liability are described in
<I>Note 13 &#8211; Derivative Liabilities</I> below.&#160;&#160;The fair values assigned to each component and the calculation
of the amount of the deemed dividend are as follows:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; text-indent: 0pt; text-align: left; font-weight: bold">Accounting allocation of initial proceeds</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 80%; text-indent: 0pt">Net proceeds</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 17%; text-align: right">2,315,000</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Derivative warrant liability fair value</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,871,167</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Derivative additional investment rights fair value</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(515,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Make whole payments liability</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(695,250</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Deemed dividend</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">(766,417</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">)</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE ALIGN="CENTER" BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45pt">&nbsp;</TD>
    <TD STYLE="text-align: left">Subsequent to July 31, 2011, up to the date of this report, an additional 667 shares of convertible preferred stock were converted to common stock in accordance with the terms of the securities purchase agreement dated July 8, 2011.&#160;&#160;As of September 30, 2011, as well as the date of this report, 620 shares of convertible preferred stock remained outstanding.&#160;&#160;The September 30, 2011 quarterly dividend payment of $12,383, as pro-rated for the period from July 8, to September 30, 2011 was paid in shares of the Company&#8217;s common stock.</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 13 - Derivative Liabilities:</U></B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><I>Derivative warrant
liability</I></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has
warrants outstanding with price protection provisions that allow for the reduction in the exercise price of the warrants in the
event the Company subsequently issues stock or securities convertible into stock at a price lower than the exercise price of the
warrants.&#160;&#160;Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be
purchased upon exercise of each of these warrants shall be increased or decreased proportionately, so that after such adjustment
the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect
immediately prior to such adjustment.&#160;&#160;As of August 1, 2009, the Company accounted for its warrants with price protection
in accordance with FASB ASC Topic 815.</P>

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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Accounting for
Derivative Warrant Liability</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s
derivative warrant instruments have been measured at fair value at July 31, 2011 and 2010 using the binomial lattice model.&#160;&#160;The
Company recognizes all of its warrants with price protection in its consolidated balance sheet as liabilities.&#160;&#160;The liability
is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of operations.&#160;&#160;The
initial recognition and subsequent changes in fair value of the derivative warrant liability have no effect on the Company&#8217;s
cash flows.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The derivative warrants
outstanding at July 31, 2011 are all currently exercisable with a weighted-average remaining life of 4.70 years.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The revaluation
of the warrants at each reporting period, as well as the charges associated with issuing additional warrants due to the price protection
features, resulted in the recognition of income of $2,220,916 and $4,125,590 within the Company&#8217;s consolidated statements
of operations for the fiscal years ended July 31, 2011 and 2010, respectively, under the caption &#8220;Change in fair value of
derivative warrant liability&#8221;.&#160;&#160;The fair value of the warrants at July 31, 2011 and 2010 is $8,745,508 and $5,679,721,
respectively, which is reported on the consolidated balance sheet under the caption &#8220;Derivative Warrant Liability&#8221;.&#160;&#160;The
following summarizes the changes in the value of the derivative warrant liability from the date of the Company&#8217;s adoption
of the provisions of FASB ASC Topic 815 on August 1, 2009 until July 31, 2011:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Value</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">No.&#160;of&#160;Warrants</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Balance at August 1, 2009&#8211; Derivative warrant liability</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">19,825,865</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">35,966,118</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Exercise of warrants classified as derivative warrant liabilities</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(10,020,554</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(19,462,778</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Decrease in fair value of derivative warrant liability</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(4,125,590</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">n/a</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Balance at July 31, 2010 &#8211; Derivative warrant liability</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">5,679,721</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,503,340</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Additional warrants issued in January to April 2011 financings</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,415,536</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,056,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Additional warrants issued in July 2011 financing</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,871,167</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">17,166,666</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Additional warrants from price protection features of existing warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,867,678</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,508,011</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Decrease in fair value of derivative warrant liability</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(6,088,594</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">n/a</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Balance at July 31, 2011 &#8211; Derivative warrant liability</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">8,745,508</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">80,234,017</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Fair Value Assumptions
Used in Accounting for Derivative Warrant Liability</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has
determined its derivative warrant liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model
to calculate the fair value as of July 31, 2011 and 2010.&#160;&#160;The binomial lattice model requires six basic data inputs:
the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility
of the stock price in the future, and the dividend rate.&#160;&#160;Because the warrants contain the price protection feature,
the probability that the exercise price of the warrants would decrease as the stock price decreased was incorporated into the valuation
calculations.&#160;&#160;The key inputs used in the July 31, 2011 and 2010 fair value calculations were as follows:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Current exercise price</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: right; text-indent: 0pt">$0.15 and $0.25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.33</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Time to expiration</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; text-indent: 0pt">4.70 years</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: right; text-indent: 0pt">5.75 years</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Risk-free interest rate</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">1.23</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">%</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">1.87</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Estimated volatility</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">108</TD>
    <TD NOWRAP STYLE="text-align: left">%</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">104</TD>
    <TD NOWRAP STYLE="text-align: left">%</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Dividend</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-0-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-0-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Stock price on July 31</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.13</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.40</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><I>Derivative additional
investment rights liability</I></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The benefit received
by the participants in the July 2011 Series A 9% Convertible Preferred Stock transaction in respect to the right to make an additional
investment with the same terms as the July 2011 transaction was determined to be an embedded derivative instrument and has been
measured at fair value using the binomial lattice model.&#160;&#160;The liability will be revalued at each subsequent reporting
period prior to its expiry in July 2012 and any changes in fair value will be recognized in the consolidated statements of operations.&#160;&#160;The
initial recognition and subsequent changes in fair value of the derivative additional investment rights liability have no effect
on the Company&#8217;s cash flows.</P>

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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has
determined the derivative additional investment rights liability to be a Level 2 fair value measurement and has used the binominal
lattice pricing model at the date of issuance on July 8, 2011 and as of July 31, 2011 to measure the fair value.&#160;&#160;The
fair value of the derivative liability associated with the additional investment rights was determined to be $515,000.&#160;&#160;The
key inputs used in the fair value calculations were as follows:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 80%; text-indent: 0pt">Current exercise price</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 17%; text-align: right">0.25</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Time to expiration</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; text-indent: 0pt">1.0 year</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Risk-free interest rate</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1.23</TD>
    <TD NOWRAP STYLE="text-align: left">%</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Estimated volatility</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">58</TD>
    <TD NOWRAP STYLE="text-align: left">%</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Dividend</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-0-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Stock price</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.13</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 14 - Stockholders&#8217;
(Deficiency)/Equity</U>:</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Warrants</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">As of July 31, 2011,
the Company has the following warrants to purchase common stock outstanding:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; text-indent: 0pt">Number of Shares</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; text-indent: 0pt">Warrant Exercise</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0pt">Warrant</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">To be Purchased</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Price per Share</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Expiration Date</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="width: 33%; text-align: right">100,000</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 32%; text-align: right">1.71</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 32%; text-indent: 0pt">March 3, 2012</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: right">140,000</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">1.45</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">May 27, 2012</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: right">365,625</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.33</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">May 31, 2012</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: right">50,000</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.94</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">March 9, 2013</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: right">125,000</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">3.75</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">March 26, 2013</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: right">8,844,926</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.76</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">December 15, 2014</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: right">3,572,971</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.79</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">February 4, 2015</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: right">300,000</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.39</TD>
    <TD STYLE="text-align: left">(average)</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">February 9, 2015</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: right">200,000</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">1.25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">March 7, 2015</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: right">6,022,651</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">1.00</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">March 15, 2015</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: right">26,760,001</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">January 16, 2016*</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: right">30,648,261</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.15</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">March 31, 2016*</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: right">17,166,666</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.25</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0pt">July 11, 2016*</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; text-align: right">5,659,089</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">$</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">0.15</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">September 30, 2016*</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="border-bottom: black 4px double; text-align: right">99,955,190</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 4px">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">* Subject to price
protection provisions as described below.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The outstanding warrants
at July 31, 2011 have a weighted average exercise price of $0.31 per share and have a weighted average remaining life of 4.45 years.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has 26,760,001
warrants with a current exercise price of $0.15 and an expiry date of January 16, 2016, 30,648,261 warrants with a current exercise
price of $0.15 and an expiry date of March 31, 2016, 17,166,666 warrants with a current exercise price of $0.25 and an expiry date
of July 11, 2016 and 5,659,089 warrants with a current exercise price of $0.15 and an expiry date of September 30, (80,234,017
warrants in total), which have price protection provisions that allow for the reduction in the current exercise price upon the
occurrence of certain events, including the Company&#8217;s issuance of common stock or securities convertible into or exercisable
for common stock, such as options and warrants, at a price per share less than the exercise price then in effect.&#160;&#160;For
instance, if the Company issues shares of its common stock or options exercisable for or securities convertible into common stock
at an effective price per share of common stock less than the exercise price then in effect, the exercise price will be reduced
to the effective price of the new issuance.&#160;&#160;Simultaneously with any reduction to the exercise price, the number of shares
of common stock that may be purchased upon exercise of each of these warrants shall be increased proportionately, so that after
such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise
price in effect immediately prior to such adjustment.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s
issuance of the following securities will not trigger the price protection provisions of the warrants described above that were
issued in connection with the March 2008 private placement.&#160;&#160;(a) shares of common stock or standard options to the Company&#8217;s
directors, officers, employees or consultants pursuant to a board-approved equity compensation program or other contract or arrangement
(up to an aggregate amount of 5,608,926, representing 5% of the common stock issued and outstanding immediately prior to March
31, 2008); (b) shares of common stock issued upon the conversion or exercise of any security, right or other instrument convertible
or exchangeable into common stock (or securities exchangeable into common stock) issued prior to March 31, 2008; (c) the shares
of common stock issued upon exercise of the warrants issued in March 2008; and (d) shares of common stock and warrants in connection
with strategic alliances, acquisitions, mergers, and strategic partnerships, the primary purpose of which is not to raise capital,
and which are approved in good faith by the Company&#8217;s board of directors (up to an aggregate number of 11,217,852, representing
10% of the shares of common stock issued and outstanding immediately prior to March 31, 2008). On July 8, 2011, the Company&#8217;s
issuance of common stock triggered the price protection features of the warrants that were issued in March 2008 resulting in a
decrease of the exercise price from $0.25 to $0.15 per share and an increase in the number of warrants from 21,784,410 to 36,307,350.</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s
issuance of the following securities will not trigger the price protection provisions of the warrants issued on January 25, 2011
and in March and April 2011:&#160;&#160;&#160;(I) (a) shares of common stock or options to employees, officers, or directors of
the Company pursuant to plans approved by a majority of the non-employee directors of the Company or pursuant to independent contractors
pursuant to other agreements or arrangements in existence as of January 24, 2011, (b) securities issued upon the exercise or exchange
of or conversion of any securities issued under the Securities Purchase Agreement dated January 24, 2011 and/or other securities
exercisable or exchangeable for or convertible into shares of common stock issued and outstanding on January 24, 2011, provided
that such securities have not been amended since their issue date through the date of conversion, exercise or exchange to increase
the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (except
certain adjustments to warrants expiring in March 2016 and September 2016 are not prohibited), and (c) shares of common stock or
warrants to trade vendors of the Company approved by a majority of the non-employee members of the Board of Directors; provided
that (II) (i) the shares issued under paragraphs I(a) and I(c) shall not, in the aggregate exceed 1,500,000 shares in each 30-day
period during the first 90 days after January 24, 2011, (ii) there is a reasonable relationship between the value of the common
stock or options issued pursuant to paragraphs I(a) and I(c) and the value of services rendered or goods provided and (iii) the
Company does not rely in whole or in part on the exemptions provided in Sections 3(a)(9) or 3(a)(10) of the Securities Act.&#160;&#160;On
July 8, 2011, the Company&#8217;s issuance of common stock triggered the price protection features of the warrants that were issued
on January 25, 2011 and in March and April 2011 resulting in a decrease of the exercise price from $0.25 to $0.15 per share and
an increase in the number of warrants from 16,056,000 to 26,760,001.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company accounts
for the warrants with price protection provisions in accordance with FASB ASC Topic 815 as described in Note 13 above.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Preferred Stock</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has authorized
1,000,000 shares of preferred stock with a par value of one-tenth of a cent ($.001) per share.&#160;&#160;The preferred stock may
be issued in various series and shall have preference as to dividends and to liquidation of the Company.&#160;&#160;The Company&#8217;s
Board of Directors is authorized to establish the specific rights, preferences, voting privileges and restrictions of such preferred
stock, or any series thereof.&#160;&#160;At July 31, 2010, no shares of preferred stock were issued or outstanding. At July 31,
2011, 1,287 shares of the Company&#8217;s non-voting Series A 9% Convertible Preferred Stock were issued and outstanding.&#160;&#160;See
<I>Note 12 - Series A 9% Convertible Preferred Stock</I> above.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Equity Instruments
Issued for Services Rendered</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">During the years ended
July 31, 2011, 2010 and 2009, the Company issued stock options, warrants and shares of common stock in exchange for services rendered
to the Company.&#160;&#160;The fair value of each stock option and warrant was valued using the Black Scholes pricing model which
takes into account as of the grant date the exercise price and expected life of the stock option or warrant, the current price
of the underlying stock and its expected volatility, expected dividends on the stock and the risk free interest rate for the term
of the stock option or warrant.&#160;&#160;Shares of common stock are valued at the quoted market price on the date of grant.&#160;&#160;The
fair value of each grant was charged to the related expense in the consolidated statement of operations for the services received.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 15 &#8211; Stock-Based
Compensation</U>:</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><B>Stock Option Plans</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">As of July 31, 2011,
the Company had three stockholder-approved stock incentive plans under which shares and options exercisable for shares of common
stock have been or may be granted to employees, directors, consultants and advisors. A total of 2,000,000 shares of common stock
are reserved for issuance under the 2000 Stock Option Plan (the 2000 Plan), a total of 12,000,000 shares of common stock are reserved
for issuance under the 2001 Stock Option Plan (the 2001 Plan) and 30,000,000 shares of common stock are reserved for issuance under
the 2006 Stock Plan (the 2006 Plan). In July 2009, the 2006 Plan was amended to increase the reserved shares from 10,000,000 to
30,000,000.&#160;&#160;Restricted shares can only be issued under the 2006 Plan. At July 31, 2011, there were 2,000,000, 3,617,194
and 15,096,290 shares of common stock reserved for future awards under the 2000 Plan, 2001 Plan and 2006 Plan, respectively.&#160;&#160;The
Company issues new shares of common stock from the shares reserved under the respective Plans upon conversion or exercise of options
and issuance of restricted shares.</P>

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    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The 2000, 2001 and
2006 Plans (the Plans) are administered by the Board of Directors (the Board). The Board is authorized to select from among eligible
employees, directors, advisors and consultants those individuals to whom options are to be granted and to determine the number
of shares to be subject to, and the terms and conditions of the options. The Board is also authorized to prescribe, amend and rescind
terms relating to options granted under the Plans. Generally, the interpretation and construction of any provision of the Plans
or any options granted hereunder is within the discretion of the Board.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Plans provide that
options may or may not be Incentive Stock Options (ISOs) within the meaning of Section 422 of the Internal Revenue Code. Only employees
of the Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants are eligible
to receive options which are not ISOs, i.e. &#8220;Non-Qualified Options.&#8221; The options granted by the Board in connection
with its adoption of the Plans were Non-Qualified Options. In addition, the 2006 Plan also provides for restricted stock grants.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Share-based employee
compensation related to stock options for the years ended July 31, 2011, 2010 and 2009 amounted to $936,465, $885,872 and $45,417
for each year and were charged to the consolidated statements of operations.&#160; Share-based employee compensation related to
common stock grants for the years ended July 31, 2011, 2010 and 2009 amounted to $100,999 $104,738 and $198,128, respectively,
and were charged to the consolidated statements of operations.&#160;</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The fair value of each
option granted is estimated on grant date using the Black-Scholes option pricing model which takes into account as of the grant
date the exercise price and expected life of the option, the current price of the underlying stock and its expected volatility,
expected dividends on the stock and the risk-free interest rate for the term of the option.&#160;&#160;The following is the average
of the data used to calculate the fair value:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Risk-Free</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0pt">Expected</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Expected</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Expected</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Interest Rate</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Life (Years)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Volatility</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Dividends</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 40%; text-indent: 0pt">July 31, 2011</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">0.013</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">%</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center">5.0</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">101</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">%</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">-0-</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">July 31, 2010</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0.14</TD>
    <TD NOWRAP STYLE="text-align: left">%</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: center">6.5</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">104</TD>
    <TD NOWRAP STYLE="text-align: left">%</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-0-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">July 31, 2009</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0.17</TD>
    <TD NOWRAP STYLE="text-align: left">%</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: center">5.0</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">101</TD>
    <TD NOWRAP STYLE="text-align: left">%</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-0-</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The following is a
summary of the common stock options granted, forfeited or expired and exercised under the Plan:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Weighted&#160;Average</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Exercise&#160;Price</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Options</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">per&#160;Share</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Outstanding August 1, 2008</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">6,246,638</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">0.66</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Granted</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.29</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Forfeited or expired</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,129,500</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">1.68</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Exercised</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(100,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">0.56</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Outstanding - July 31, 2009</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,067,138</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.44</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Granted</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,705,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.63</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Forfeited</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(270,000</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.92</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Expired</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(36,500</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.63</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Exercised</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">0.00</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Outstanding - July 31, 2010</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,465,638</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.49</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Granted</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,300,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.28</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Forfeited or expired</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,848,704</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.41</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Exercised</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(576,752</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">0.001</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Outstanding - July 31, 2011</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">7,340,182</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">0.46</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Exercisable - July 31, 2011</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">6,494,346</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">0.44</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The 7,340,182 outstanding
options at July 31, 2011 had a weighted average remaining contractual term of 4.5 years.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Options typically vest
over a period of two to four years and have a contractual life of five to ten years.</P>

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<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The following is a
summary of the non-vested common stock options granted, vested and forfeited under the Plan:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Weighted&#160;Average</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Grant Date</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Options</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Fair Value</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 70%; text-indent: 0pt">Outstanding - August 1, 2010</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">2,021,669</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">0.53</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Granted</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,300,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.21</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Vested</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,097,082</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.28</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Forfeited</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">(378,751</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">0.55</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; text-indent: 0pt">Outstanding - July 31, 2011</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">845,836</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 4px; text-align: right">0.50</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">As of July 31, 2011,
the Company had $190,349 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted
under the Plan.&#160;&#160;That cost is expected to be recognized over a weighted-average period of 2.2 years.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">During the twelve months
ended July 31, 2011, the Company granted 3,300,000 options to executives, directors and management employees, as compensation.
The total fair value of the options at the date of grant was $692,010. The options vested immediately and a charge of $692,010
was recorded at the date of grant. The fair value of each option granted was estimated on the grant date using the Black-Scholes
option pricing model, taking into account the grant date exercise price and current price of the underlying stock of $0.282, an
expected life of the option of 5 years, an expected volatility of 101.3%, expected dividends on the stock of $0 and the risk-free
interest rate for the term of the option of 0.13%.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">During the twelve
months ended July 31, 2010, the Company modified the terms of 4,535,638 outstanding options which resulted in a charge to operations
in the amount of $875,773.&#160;&#160;The fair value of modification cost is estimated as the difference of options&#8217; fair
value before and after modification date.&#160;&#160;The estimates employ the Black-Scholes option pricing model, which takes into
account the exercise price ($0.001 &#8211; $0.94), expected life of the option (5 years), the current price of the underlying stock
($0.59) and its expected volatility (109.05%), expected dividends on the stock ($0) and the risk-free interest rate for the term
of the option (0.11%).</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The following table
summarizes information on stock options outstanding at July 31, 2011:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Options Outstanding</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Weighted</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Number</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Weighted</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Average</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Outstanding</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Average</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Remaining</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Aggregate</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0pt">Range of</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">at</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Exercise</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Life</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Intrinsic</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Exercise Price</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31, 2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Price</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Years)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Value</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">$0.001 - $0.18</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">542,154</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3.24</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">$0.19 <B>- </B>$0.56</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,450,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.28</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4.60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">$0.57 <B>- </B>$0.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">550,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.59</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3.24</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">$0.64 <B>- </B>$0.65</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,758,250</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.64</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5.82</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">$0.66 <B>- </B>$0.96</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,039,778</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">0.94</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">3.24</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: bottom; width: 40%; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: black 4px double; text-align: right">7,340,182</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: left">$</TD>
    <TD STYLE="vertical-align: bottom; width: 12%; padding-bottom: 4px; text-align: right">0.46</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 12%; padding-bottom: 4px; text-align: right">4.50</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; width: 1%; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: black 4px double; text-align: right">69,938</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Options Exercisable</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Weighted</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Number</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Weighted</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Average</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Outstanding</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Average</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Remaining</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Aggregate</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0pt">Range of</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">at</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Exercise</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Life</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; text-indent: 0pt">Intrinsic</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Exercise Price</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">July 31, 2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Price</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">(Years)</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">Value</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">$0.001 - $0.18</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">542,154</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.001</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3.24</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">$0.19 <B>- </B>$0.56</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,450,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.28</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4.60</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">$0.57 <B>- </B>$0.63</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">550,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.59</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3.24</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">$0.64 <B>- </B>$0.65</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">912,414</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">0.64</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6.57</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">$0.66 <B>- </B>$0.96</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">1,039,778</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">0.94</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">3.24</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: bottom; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 4px double; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 4px double; text-align: right">6,494,346</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">$</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 4px; text-align: right">0.44</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 4px; text-align: right">4.43</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 4px double; text-align: right">69,938</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">For the Year Ended July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2009</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 55%; padding-left: 9pt; text-indent: -9pt">Weighted Average Grant Date Fair Value of Options Granted</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">0.21</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">0.53</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">0.22</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Aggregate Intrinsic Value of Options Exercised</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">166,681</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">15,111</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Cash Received for Exercise of Stock Options</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">577</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">56,000</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<!-- Field: Page; Sequence: 135; Value: 2 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The intrinsic value
is calculated as the difference between the market value as of July 31, 2011, 2010 and 2009 and the exercise price of the shares
on the respective dates.&#160;&#160;The market values as of July 31, 2011, 2010 and 2009 were $0.13, $0.40, and $0.65, respectively,
based on the high and low bid information for July 31, 2011 and as reported by the NASDAQ Stock Market as of July 31, 2010 and
2009.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 16 - Qualifying Therapeutic
Discovery Project Program</U>:</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">In the Company&#8217;s
second fiscal quarter ended January 31, 2011, the Company&#8217;s wholly-owned subsidiary Antigen Express, Inc. received notification
that it had been awarded a total cash grant of $488,959 under the Qualifying Therapeutic Discovery Project program administered
under Section 48D of the Internal Revenue Code, all of which relates to qualifying expenses that had previously been incurred.&#160;&#160;The
Company recognized the full amount of the grant in the fiscal year ended July 31, 2011, as the Company has already incurred all
of the qualifying expenses and the amount has been fully received.&#160;&#160;Since this program is non-recurring in nature, the
Company elected to classify this payment as other income in the consolidated statements of operations for the fiscal year ended
July 31, 2011 and it is reported in the &#8220;Miscellaneous Income&#8221; line item.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 17 - Net Loss per
Share</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Basic loss per share
(&#8220;EPS&#8221;) and Diluted EPS for the years ended July 31, 2011, 2010 and 2009 have been computed by dividing the net loss
available to common stockholders for each respective period by the weighted average shares outstanding during that period.&#160;&#160;All
outstanding options, warrants, non-vested restricted stock and shares to be issued upon conversion of the outstanding convertible
preferred stock, representing approximately 115,875,372, 44,892,383 and&#160;&#160;51,560,258 incremental shares, have been excluded
from the respective 2011, 2010 and 2009 computation of diluted EPS as they are anti-dilutive due to the losses generated.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 18 - Supplemental
Disclosure of Cash Flow Information</U>:</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">For the Years Ended July 31,</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2009</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Cash paid during the year for:</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 55%; padding-left: 9pt; text-indent: 0pt">Interest</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">208,906</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">210,082</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">1,075,889</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: 0pt">Income taxes</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">Disclosure of non-cash
investing and financing activities:</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-decoration: underline; padding-left: 9pt; text-indent: -9pt">Year Ended July 31, 2011</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 85%; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as payment of dividends on preferred stock</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">347,760</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as satisfaction of accounts payable and accrued expenses</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">1,110,867</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-decoration: underline; padding-left: 9pt; text-indent: -9pt">Year Ended July 31, 2010</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock in satisfaction of accounts payable and accrued expenses</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">3,012,595</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Par value of common stock issued in conjunction with cashless exercise of warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">7,636</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-decoration: underline; padding-left: 9pt; text-indent: -9pt">Year Ended July 31, 2009</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as repayment of convertible debentures</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">16,112,399</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Par value of common stock issued in conjunction with cashless exercise of warrants</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">9,909</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Purchase of property and equipment through the issuance of obligations under capital lease</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">83,002</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-left: 9pt; text-indent: -9pt">Issuance of common stock as satisfaction of accounts payable and accrued expenses</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">438,697</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<!-- Field: Page; Sequence: 136; Value: 2 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="text-align: center; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 19 - Segment Information</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company follows
FASB ASC Topic 815 which establishes standards for the way that public business enterprises report information about operating
segments in annual financial statements and requires that those enterprises report selected information about operating segments
in interim financial reports.&#160;&#160;This Topic also establishes standards for related disclosures about products and services,
geographic areas, and major customers.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">This Topic uses a management
approach for determining segments.&#160;&#160;The management approach designates the internal organization that is used by management
for making operating decisions and assessing performance as the source of the Company&#8217;s reportable segments.&#160;&#160;The
Company&#8217;s management reporting structure provides for only one segment: the research, development and commercialization of
drug delivery systems and technologies for metabolic and immunological diseases.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The regions and countries
in which the Company had identifiable assets and revenues are presented in the following table.&#160;&#160;Identifiable assets
are those that can be directly associated with a geographic area.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2011</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2010</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 2px solid; text-align: center; text-indent: 0pt">2009</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-decoration: underline; text-indent: 0pt">Identifiable Assets</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 55%; text-indent: 0pt">Canada</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">8,822,831</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">20,966,421</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">21,491,898</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">United States</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,128,053</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,154,963</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,321,859</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Middle East, North Africa (MENA)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">55,481</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">453,616</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">&#8212;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 18pt; text-indent: 0pt">Total</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">12,006,365</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">24,575,000</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">24,813,757</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-decoration: underline; text-indent: 0pt">Revenue</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Canada</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">61,111</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">95,252</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">49,337</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">United States</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">60,867</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">430,516</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">605,238</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-indent: 0pt">Middle East, North Africa (MENA)</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">169,650</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">646,843</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; text-align: right">463,934</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 4px; padding-left: 18pt; text-indent: 0pt">Total</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">291,628</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,172,611</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 4px">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: left">$</TD>
    <TD STYLE="border-bottom: black 4px double; text-align: right">1,118,509</TD>
    <TD NOWRAP STYLE="padding-bottom: 4px; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 20 - Collaborative
Agreements</U>:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has a research
and development agreement with Fertin Pharma A/S whereby the parties have established collaboration for the development of a metformin
medicinal chewing gum for the treatment of Type-2 diabetes mellitus and obesity (see Note 9).</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B><U>Note 21 &#8211; Quarterly
Information (Unaudited)</U>:</B></P>

<P STYLE="text-align: justify; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The following schedule
sets forth certain unaudited financial data for the preceding eight quarters ending July 31, 2011.&#160;&#160;In our opinion, the
unaudited information set forth below has been prepared on the same basis as the audited information and includes all adjustments
necessary to present fairly the information set forth herein.&#160;&#160;The operating results for the quarter are not indicative
of results for any future period.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Q1</TD>
    <TD NOWRAP STYLE="text-align: left; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Q2</TD>
    <TD NOWRAP STYLE="text-align: left; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Q3</TD>
    <TD NOWRAP STYLE="text-align: left; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Q4</TD>
    <TD NOWRAP STYLE="text-align: left; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; width: 40%; padding-bottom: 2px; font-style: normal; text-decoration: underline; text-indent: 0pt">Fiscal Year July 31, 2011:</TD>
    <TD STYLE="width: 1%; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 12%; padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Revenues, net</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">173,943</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">29,560</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">65,583</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">22,542</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Operating Loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(7,773,820</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(5,967,558</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(5,061,959</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(5,729,745</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net Loss</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(6,877,267</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(5,236,906</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(4,116,953</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(5,444,741</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net Loss available to common stockholders</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(6,877,267</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(5,236,906</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(4,116,953</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(6,211,158</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net Loss per share</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.03</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.02</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.01</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.02</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 2px; text-decoration: underline; text-indent: 0pt">Fiscal Year July 31, 2010:</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2px; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 2px; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Revenues, net</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">97,542</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">431,344</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">327,698</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">316,027</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Operating Loss</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(8,181,433</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(7,339,090</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(7,361,288</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">6,548,006</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net Loss</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(5,142,385</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(9,294,218</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(4,567,550</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(6,275,787</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: white; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net Loss available to common stockholders</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(5,142,385</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(9,294,218</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(4,567,550</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(6,275,787</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
<TR STYLE="background-color: #ccffcc; vertical-align: bottom">
    <TD STYLE="text-align: left; text-indent: 0pt">Net Loss per share</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.02</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.04</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.02</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.02</TD>
    <TD NOWRAP STYLE="text-align: left">)</TD></TR>
</TABLE>
<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><B>Note 22 - Subsequent Events:</B></P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">On August 26, 2011,
the Company sold two of its commercial properties held as investments for gross proceeds of $1,809,926.&#160;&#160;These properties
had a net book value of $1,073,837 and the resulting gain on sale of these investment properties will be recognized in the first
quarter of fiscal 2012.&#160;&#160;The net cash proceeds after discharge of mortgages and payment of real estate commissions was
just over $1,000,000.</P>

<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">The Company has evaluated
subsequent events occurring after the balance sheet date through the date the consolidated financial statements were issued.</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">&#160;</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif">On September 28, 2011,
the Company signed a letter agreement agreeing to convert an unsecured payable from May 2009 in the amount of approximately $1.1
million to a balance inclusive of interest and fees of approximately $2.2 million.&#160; Per the letter agreement, such balance
will be settled in Antigen stock following the proposed spinout of Antigen.&#160; The balance per the letter agreement has been
accrued at July 31, 2011 and has been included in our consolidated balance sheet under accounts payable and accrued expenses as
of such date.</P>

<P STYLE="text-align: left; text-indent: 0pt; margin: 0 0 0 45pt; font: 10pt Times New Roman, Times, Serif"><BR>
</P>

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<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="margin: 0pt"></P>



<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED BALANCE SHEETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">April 30, 2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">July 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">(Unaudited)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 70%; text-align: left; padding-left: 9.35pt">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">1,194,578</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">2,798,797</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,690</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt">Inventory (Note 5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">717,442</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt">Other current assets (Note 12)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">296,290</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">225,052</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt">Total Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,490,868</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,749,981</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 37.45pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Property and Equipment, Net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">851,423</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,271,867</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Assets Held for Investment, Net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">886,927</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,634,929</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Patents, Net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,038,855</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,349,588</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,268,073</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12,006,365</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 37.45pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt">LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIENCY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt">Accounts payable and accrued expenses (Note 6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,976,878</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,738,179</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt">Deferred revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">287,080</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">369,748</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt">Current maturities of long-term debt</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,482,023</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,210,271</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 18.7pt">Total Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,745,981</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,318,198</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 37.45pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Long-Term Debt, Net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">569,653</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,869,795</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Derivative Warrant Liability (Note 11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,603,470</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,745,508</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Derivative Additional Investment Rights Liability (Note 11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">437</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">515,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 18.7pt">Total Liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">13,919,541</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">20,448,501</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 37.45pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Commitments and Contingencies (Notes 7 and 8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stockholders&rsquo; Deficiency (Note 10):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt">Series A 9% Convertible Preferred Stock, $1,000 par value; authorized 5,500</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt">shares at April 30, 2012 and July 31, 2011, respectively ; -0- and 1,287 shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt">issued and outstanding at April 30, 2012 and July 31, 2011, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt">Series B 9% Convertible Preferred Stock, $1,000 par value; authorized 2,000</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 18.7pt">and -0- shares at April 30, 2012 and July 31, 2011, respectively ; 2,000 and -0-</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt">shares issued and outstanding at April 30, 2012 and July 31, 2011, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9.35pt">Common stock, $.001 par value; authorized 750,000,000 shares at April 30,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt">2012 and July 31, 2011, respectively; 346,678,800 and 308,519,768 shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt">issued and outstanding at April 30, 2012 and July 31, 2011, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">346,679</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">308,520</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">347,267,912</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">338,124,525</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt">Deficit accumulated during the development stage</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(356,035,942</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(347,744,756</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt">Accumulated other comprehensive income</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">769,883</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">869,575</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt">Total Stockholders&rsquo; Deficiency</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,651,468</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(8,442,136</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 37.45pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIENCY</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,268,073</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12,006,365</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The Notes to Consolidated Financial Statements
are an integral part of these statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 138; Value: 2 -->
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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>CONSOLIDATED STATEMENTS OF
OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">Cumulative From</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">November 2, 1995</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">For the Nine Months Ended</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">For the Three Months Ended</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Date of Inception)</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">April 30,</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">April 30,</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">April 30,</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">2012</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">2011</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">2012</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">2011</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">2012</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 40%; text-align: left"><FONT STYLE="font-size: 8pt">Revenues, net</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">21,901</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">269,086</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">7,012</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">65,583</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">5,104,034</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Cost of Goods Sold</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">9,122</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">143,360</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">2,230</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">55,482</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">1,618,388</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Gross profit</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">12,779</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">125,726</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">4,782</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">10,101</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,485,646</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Operating Expenses:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Research and development</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,835,715</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">7,859,382</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,127,047</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,754,325</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">130,824,443</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Research and development - related party</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">220,218</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Selling and marketing</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">167,316</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">806,798</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">18,258</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">207,848</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">9,335,355</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">General and administrative</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,732,027</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">10,262,883</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,325,747</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,109,887</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">146,645,004</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">General and administrative
    - related party</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">314,328</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.24in"><FONT STYLE="font-size: 8pt">Total Operating Expenses</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">7,735,058</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">18,929,063</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">2,471,052</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">5,072,060</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">287,339,348</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 37.45pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Operating Loss</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(7,722,279</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(18,803,337</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(2,466,270</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(5,061,959</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(283,853,702</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 8pt">Other Income/(Expense):</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Miscellaneous income</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">488,959</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">686,303</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Income from assets held for investment, net
    (Note 13)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,928,850</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">236,732</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,148,526</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">70,450</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">4,056,891</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Interest income</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,215</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">5,985</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">450</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,154</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">7,781,589</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Interest expense</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(518,506</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(153,385</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(423,674</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(52,301</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(68,934,663</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Change in fair value of derivative liabilities
    (Note 11)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,603,720</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,993,920</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,608,825</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">925,703</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,238,257</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Loss on extinguishment
    of debt</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(14,134,068</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Net (Loss)/Income Before Undernoted</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(7,914,440</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(16,231,126</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">867,857</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(4,116,953</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(355,635,907</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Minority Interest Share of Loss</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,038,185</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Net (Loss) /Income</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(7,914,440</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(16,231,126</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">867,857</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(4,116,953</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(352,597,722</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Preferred Stock Dividend</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">376,746</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">376,746</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,438,220</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">Net (Loss)/Income Available to Common Stockholders</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">(8,291,186</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">(16,231,126</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">491,111</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">(4,116,953</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">(356,035,942</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 8pt">Net (Loss)/Income Per Common Share (Note 9)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Basic</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(.024</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(.060</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">.003</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(.010</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Diluted</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(.024</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(.060</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">.003</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(.010</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD><FONT STYLE="font-size: 8pt">Shares Used to Compute (Loss)/Earnings per Share (Note 9)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Basic</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">326,340,807</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">279,968,884</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">345,539,723</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">292,370,915</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Diluted</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">326,340,807</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">279,968,884</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">345,543,799</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">292,370,915</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">The Notes to Consolidated
Financial Statements are an integral part of these statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 139; Value: 2 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>CONSOLIDATED STATEMENTS OF
CASH FLOWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">Cumulative From</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">For the Nine Months</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">November 2, 1995</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Ended April
    30,</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">(Date of Inception)</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">2012</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">2011</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">to April 30,
    2012</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Cash Flows From Operating Activities:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 55%; text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Net loss</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">(7,914,440</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">(16,231,126</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">(352,597,722</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Adjustments to reconcile net loss to net cash
    used in operating activities:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Depreciation and amortization</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">472,146</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">561,304</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">9,768,028</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Minority interest share of loss</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(3,038,185</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Reduction of notes receivable - common stock
    in exchange</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 28.1pt"><FONT STYLE="font-size: 8pt">for services rendered</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">423,882</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Write-off of uncollectible notes receivable
    - common stock</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">391,103</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Write-off of deferred offering costs</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,406,196</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Write-off of abandoned patents</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">88,582</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,001,778</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Gain on disposal of property and equipment</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,793,087</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,756,298</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Loss on extinguishment of debt</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">14,134,069</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Common stock issued as employee compensation</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">68,483</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">75,749</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,949,877</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Amortization of options and option modifications
    as stock compensation</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">56,961</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">885,475</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,865,803</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Common stock issued for services rendered</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">606,545</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,797,355</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">14,414,379</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Amortization of prepaid services in conjunction
    with common stock issuance</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">138,375</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Non-cash compensation expense</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">45,390</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Stock options and warrants issued for services
    rendered</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">7,956,723</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Issuance of warrants as additional exercise
    right inducement</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">21,437,909</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Preferred stock issued for services rendered</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">100</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Treasury stock redeemed for non-performance
    of services</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(138,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Amortization of deferred debt issuance costs
    and loan origination fees</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,405,629</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Amortization of discount on convertible debentures</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">38,345,592</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Common stock issued for interest on convertible
    debentures &amp; preferred stock</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">347,490</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,105,004</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Interest on short-term advance</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">22,190</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Founders&rsquo; shares transferred for services
    rendered</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">353,506</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Fees in connection with refinancing of debt</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">113,274</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Warrant repricing costs</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,198,604</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Change in fair value of derivative liabilities</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,603,720</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,993,920</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,238,257</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Changes in operating assets and liabilities
    (excluding the effects of acquisition):</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 28.1pt"><FONT STYLE="font-size: 8pt">Accounts receivable</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">8,474</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">51,926</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(15,043</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 28.1pt"><FONT STYLE="font-size: 8pt">Miscellaneous receivables</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">43,812</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 28.1pt"><FONT STYLE="font-size: 8pt">Inventory</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">716,415</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">443,626</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(20,068</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 28.1pt"><FONT STYLE="font-size: 8pt">Other current assets</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(70,693</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">153,278</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(274,587</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 28.1pt"><FONT STYLE="font-size: 8pt">Accounts payable and accrued expenses</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,267,420</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">336,322</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">14,975,136</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 28.1pt"><FONT STYLE="font-size: 8pt">Deferred revenue</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(81,634</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(19,854</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">281,093</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 28.1pt"><FONT STYLE="font-size: 8pt">Other, net</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">110,317</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 37.45pt"><FONT STYLE="font-size: 8pt">Net Cash Used in Operating
    Activities</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(7,158,458</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(13,939,865</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(215,713,877</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>

<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Cash Flows From Investing Activities:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 55%; text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Purchase of property and equipment</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">(2,416</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">(52,160</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">(4,809,439</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Proceeds from sale of property and equipment</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">4,614,057</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">4,614,057</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Costs incurred for patents</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(110,929</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(179,503</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(2,777,200</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Change in restricted cash</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">512,539</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Proceeds from maturity of short term investments</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">195,242,918</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 8pt">Purchases of short-term investments</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(195,242,918</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Cash received in conjunction with merger</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">82,232</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Advances to Antigen Express, Inc.</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(32,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Increase in officers&rsquo; loans receivable</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,126,157</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Change in deposits</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(652,071</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Change in notes receivable - common stock</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(91,103</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Change in due from related parties</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(2,222,390</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Other, net</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">89,683</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 37.45pt"><FONT STYLE="font-size: 8pt">Net Cash Provided by/(Used
    in) Investing Activities</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">4,500,712</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(231,663</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(6,411,849</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The Notes to Consolidated Financial Statements
are an integral part of these statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 140; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>CONSOLIDATED STATEMENTS OF
CASH FLOWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">Cumulative From</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">For the Nine Months</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">November 2, 1995</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Ended April
    30,</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">(Date of Inception)</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">2012</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">2011</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">to April 30,
    2012</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 8pt">(Unaudited)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Cash Flows From Financing Activities:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 55%; text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Proceeds from short-term advance</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">325,179</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Repayment of short-term advance</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(347,369</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Proceeds from issuance of long-term debt</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,566,088</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">5,571,697</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Repayment of long-term debt</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(4,488,539</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(86,016</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(6,729,727</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Repayment of obligations under capital lease</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(7,818</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(83,002</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Change in due to related parties</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">154,541</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Proceeds from exercise of warrants</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">30,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">45,728,281</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Proceeds from exercise of stock options</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">577</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">5,002,493</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Proceeds from minority interest investment</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,038,185</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Proceeds from issuance of preferred stock</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,975,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">16,305,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Redemption of SVR preferred stock</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(100</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Proceeds from issuance of convertible debentures,
    net</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">40,704,930</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Payment of costs associated with convertible
    debentures</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(722,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Repayments of convertible debentures</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(5,142,424</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Purchase of treasury stock</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(483,869</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Proceeds from issuance of common stock, net</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,939,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">120,576,242</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Purchase and retirement
    of common stock</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(497,522</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 37.45pt"><FONT STYLE="font-size: 8pt">Net Cash Provided by
    Financing Activities</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">1,082,549</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">3,845,743</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">223,399,785</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.65in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Effect of Exchange Rates on Cash</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(29,022</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">10,399</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(79,481</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Net (Decrease)/Increase in Cash and Cash Equivalents</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,604,219</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(10,315,386</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,194,578</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Cash and Cash Equivalents, Beginning of Period</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">2,798,797</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">13,880,870</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">Cash and Cash Equivalents, End of Period</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">1,194,578</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">3,565,484</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">1,194,578</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Supplemental Disclosure of Cash Flow Information:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Cash paid during the period for:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Interest</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">518,506</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">153,385</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">Income taxes</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 18.7pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9.35pt"><FONT STYLE="font-size: 8pt">Disclosure of non-cash investing and financing
    activities:</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 28.35pt; text-indent: -9pt"><FONT STYLE="font-size: 8pt">Issuance of common stock
    as satisfaction of accounts payable and accrued expenses</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,008,220</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 28.35pt; text-indent: -9pt"><FONT STYLE="font-size: 8pt">Par value of common stock
    issued in conjunction with cashless exercise of warrants</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">20,460</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">998</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 28.35pt; text-indent: -9pt"><FONT STYLE="font-size: 8pt">Issuance of common stock
    as interest on convertible preferred stock</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">347,490</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The Notes to Consolidated Financial Statements
are an integral part of these statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 141; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-align: justify; text-indent: -31.5pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>1.</B></TD><TD STYLE="text-align: justify"><B>Basis of Presentation</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The accompanying unaudited interim
consolidated financial statements (&ldquo;interim statements&rdquo;) have been prepared pursuant to the rules and regulations
for reporting on Form 10-Q. Accordingly, certain information and disclosures required by generally accepted accounting principles
for complete financial statements are not included herein. The interim statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company&rsquo;s latest Annual Report on Form 10-K. The results for the
nine months ended April 30, 2012 may not be indicative of the results for the entire year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">Interim statements are subject
to possible adjustments in connection with the annual audit of the Company&rsquo;s accounts for fiscal year 2012. In the Company&rsquo;s
opinion, all adjustments necessary for a fair presentation of these interim statements have been included and are of a normal
and recurring nature.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company is a development
stage company, which has a limited history of operations and limited revenue to date. This revenue has been comprised mainly of
the sale of our confectionary products, although the Company has recognized $600,000 relating to upfront license fees for the
signing of license and distribution agreements for Generex Oral-lyn&trade;. Additionally, the Company has several product candidates
that are in various research or early stages of pre-clinical and clinical development. There can be no assurance that the Company
will be successful in obtaining regulatory clearance for the sale of existing or any future products or that any of the Company&rsquo;s
products will be commercially viable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><B>Going Concern</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The accompanying interim statements
have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities
and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception
and had an accumulated deficit at April 30, 2012 of approximately $356 million. The Company has funded its activities to date
almost exclusively from debt and equity financings, as well as the recent sales of non-essential real estate assets in August
2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company will continue to
require substantial funds to continue research and development, including pre-clinical studies and clinical trials of its product
candidates, and to commence sales and marketing efforts, if the FDA or other regulatory approvals are obtained.&nbsp; Management&rsquo;s
plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common
stock, preferred stock offerings, issuances of debt and convertible debt instruments.&nbsp; Management will be limited in the
financing activities that the Company undertakes in the near future as the securities purchase agreement that the Company entered
into on January 31, 2012 with certain investors prohibits the Company from (i) issuing additional equity securities until 60 days
after the effective date of a registration statement covering the resale of the common stock issuable upon exercise of the warrants
and conversion of the preferred stock sold in that transaction and (ii) issuing additional debt or equity securities with variable
conversion or exercise prices until February 1, 2013. Management is also actively pursuing financial and strategic alternatives,
including strategic investments and divestitures, industry collaboration activities and strategic partners.&nbsp; Management has
sold, and is also seeking further sales of, non-essential real estate assets which are classified as Assets Held for Investment
to augment its cash position.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">There are no assurances that
such additional funding will be achieved and that it will succeed in its future operations. The interim statements do not include
any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might
be necessary should the Company be unable to continue in existence. The Company&rsquo;s inability to obtain required funding in
the near future or its inability to obtain funding on favorable terms will have a material adverse effect on its operations and
strategic development plan for future growth. If the Company cannot successfully raise additional capital and implement its strategic
development plan, its liquidity, financial condition and business prospects will be materially and adversely affected, and the
Company may have to cease operations. These factors raise substantial doubt regarding the Company&rsquo;s ability to continue
as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Effects of Recent Accounting
                                                                       Pronouncements</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45.35pt; text-align: justify"><I>Recently Adopted Accounting
Pronouncements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In January 2010, the Financial
Accounting Standards Board (&ldquo;FASB&rdquo;) issued additional guidance on fair value measurements and disclosures which requires
reporting entities to provide information about movements of assets among Levels 1 and 2 of the three-tier fair value hierarchy
established by the existing guidance. <FONT STYLE="color: black">The guidance was effective for our fiscal year beginning August
1, 2011. The adoption of this new accounting guidance did not have a material impact on the Company&rsquo;s interim statements.
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In May 2011, the FASB issued
further guidance on fair value measurements and disclosures which requires the categorization by level for items that are only
required to be disclosed at fair value and information about transfers between Level 1 and Level 2. In addition, the update provides
guidance on measuring the fair value of financial instruments managed within a portfolio and the application of premiums and discounts
on fair value measurements. The guidance requires additional disclosure for Level 3 measurements regarding the sensitivity of
fair value to changes in unobservable inputs and any interrelationships between those inputs. The guidance is effective for the
Company&rsquo;s interim period ended April 30, 2012. The adoption of this new accounting guidance did not have a material impact
on the Company&rsquo;s interim statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45.35pt; text-align: justify"><I>Recently Issued Accounting
Pronouncements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In June 2011, the FASB issued
guidance regarding the presentation of Comprehensive Income within financial statements. The guidance is effective for annual
periods beginning after December 15, 2011 and subsequent interim periods. The Company is currently evaluating the impact of this
new accounting guidance on its interim statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Stock-Based Compensation</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">As of April 30, 2012, the Company
had three stockholder-approved stock incentive plans under which shares and options exercisable for shares of common stock have
been or may be granted to employees, directors, consultants and advisors. A total of 2,000,000 shares of common stock are reserved
for issuance under the 2000 Stock Option Plan (the &ldquo;2000 Plan&rdquo;), a total of 12,000,000 shares of common stock are
reserved for issuance under the 2001 Stock Option Plan (the &ldquo;2001 Plan&rdquo;) and 30,000,000 shares of common stock are
reserved for issuance under the 2006 Stock Plan (the &ldquo;2006 Plan&rdquo;). Restricted shares can only be issued under the
2006 Plan. At April 30, 2012, there were 2,000,000, 3,739,444 and 14,726,577 shares of common stock reserved for future awards
under the 2000 Plan, 2001 Plan and 2006 Plan, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The 2000, 2001 and 2006 Plans
(the &ldquo;Plans&rdquo;) are administered by the Board of Directors (the &ldquo;Board&rdquo;). The Board is authorized to select
from among eligible employees, directors, advisors and consultants those individuals to whom options are to be granted and to
determine the number of shares to be subject to, and the terms and conditions of the options. The Board is also authorized to
prescribe, amend and rescind terms relating to options granted under the Plans. Generally, the interpretation and construction
of any provision of the Plans or any options granted hereunder are within the discretion of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Plans provide that options
may or may not be Incentive Stock Options (&ldquo;ISOs&rdquo;) within the meaning of Section 422 of the Internal Revenue Code.
Only employees of the Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants
are eligible to receive options which are not ISOs, i.e. &ldquo;Non-Qualified Options.&rdquo; The options granted by the Board
in connection with its adoption of the Plans were Non-Qualified Options. In addition, the 2006 Plan also provides for restricted
stock grants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The fair value of each option
granted is estimated on the grant date using the Black-Scholes option pricing model which takes into account as of the grant date
the exercise price and expected life of the option, the current price of the underlying stock and its expected volatility, expected
dividends on the stock and the risk-free interest rate for the term of the option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In the case of restricted stock
grants under the 2006 Plan, fair market value of the shares is established as the market price on the date of the stock grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The following is a summary of
the common stock options granted, forfeited or expired and exercised under the Plans for the nine months ended April 30, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.63in">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Weighted</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Average</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Exercise</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Aggregate</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Price</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Intrinsic</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Options</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Share</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 55%">Outstanding, August 1, 2011</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">7,340,182</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">0.465</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Granted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">n/a</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Forfeited or expired</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(327,250</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.716</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Exercised</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;n/a</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">Outstanding, April 30, 2012</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,012,932</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.453</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">54,758</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Exercisable, April 30, 2012</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,740,432</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.445</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">54,758</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt">The 7,012,932 outstanding options at April 30, 2012
had a weighted average remaining contractual term of 3.8 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The following is a summary of
the non-vested common stock options granted, vested and forfeited under the Plan for the nine months ended April 30, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Weighted Average</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">Grant Date</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Options</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 62%; text-align: left">Outstanding, August 1, 2011</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 16%; text-align: right">845,836</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">0.50</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Granted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Vested</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(470,836</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.53</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Forfeited</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(102,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.46</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Outstanding, April 30, 2012</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">272,500</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.46</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">As of April 30, 2012, the Company
had $73,604 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under
the Plans. That cost is expected to be recognized over a weighted-average period of 1.45 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>4.</B></TD><TD STYLE="text-align: justify"><B>Comprehensive Income
                                                                       and Loss</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">Comprehensive income, which includes
net income and the change in the foreign currency translation account, for the three months ended April 30, 2012, was $853,204.
Comprehensive loss, which includes net loss and the change in the foreign currency translation account, for the three months ended
April 30, 2011, was $4,041,033.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">Comprehensive loss, which includes
net loss and the change in the foreign currency translation account, for the nine months ended April 30, 2012, was $8,014,132.
Comprehensive loss, which includes net loss and the change in the foreign currency translation account, for the nine months ended
April 30, 2011, was $16,126,975.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>5.</B></TD><TD STYLE="text-align: justify"><B>Inventory</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">Inventory consists of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 91%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.63in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">April 30, 2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">July 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 62%; text-align: left">Raw materials</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">502,195</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Finished goods</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">215,247</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 9pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">717,442</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 9pt"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45.35pt; text-align: justify">At July 31, 2011, 70% of the
inventory related to the Company&rsquo;s Oral-lyn&trade; product which was expected to be used primarily in future clinical trials,
while the remainder at July 31, 2011 related to the Company&rsquo;s over-the-counter confectionary products. As the Company is
no longer focusing resources on the sale of the over-the-counter confectionary products, the Company took a write-down of approximately
$207,000 in the nine months ended April 30, 2012 related to the remaining raw materials and finished goods pertaining to this
product line which is included in research and development expenses. The Company took a write-down of approximately $501,000 in
the nine months ended April 30, 2012, pertaining to the remaining raw material inventory related to Oral-lyn&trade;, as such inventory
was not expected to be used up in clinical trials prior to its expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>6.</B></TD><TD STYLE="text-align: justify"><B>Accounts Payable and
                                                                       Accrued Expenses</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: left">Accounts payable and accrued expenses
consist of the following:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 91%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.63in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">April 30, 2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">July 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 62%; text-align: left">Accounts Payable &amp; Accruals &ndash; General and Administrative</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">3,679,270</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">4,805,091</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts Payable &amp; Accruals &ndash; Research and Development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,088,101</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,151,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Accounts Payable &amp; Accruals &ndash; Selling and Marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">298,802</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">434,265</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued Make Whole Payments on Convertible Preferred Stock (see Note 10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">540,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">347,490</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Executive Compensation and Directors&rsquo; Fees Payable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">370,705</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 9pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,976,878</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,738,179</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>7.</B></TD><TD STYLE="text-align: justify"><B>Pending Litigation</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In February 2001, a former business
associate of the former Vice President of Research and Development (&ldquo;VP&rdquo;) of the Company and an entity known as Centrum
Technologies Inc. (&ldquo;CTI&rdquo;) commenced an action in the Ontario Superior Court of Justice against the Company and the
VP seeking, among other things, damages for alleged breaches of contract and tortious acts related to a business relationship
between this former associate and the VP that ceased in July 1996. The plaintiffs&rsquo; statement of claim also seeks to enjoin
the use, if any, by the Company of three patents allegedly owned by CTI. The three patents are entitled <I>Liquid Formulations
for Proteinic Pharmaceuticals</I>, <I>Vaccine Delivery System for Immunization, Using Biodegradable Polymer Microspheres</I>,
and <I>Controlled Releases of Drugs or Hormones in Biodegradable Polymer Microspheres</I>. It is the Company&rsquo;s position
that the buccal drug delivery technologies which are the subject matter of the Company&rsquo;s research, development, and commercialization
efforts, including Generex Oral-lyn&trade; and the RapidMist&trade; Diabetes Management System, do not make use of, are not derivative
of, do not infringe upon, and are entirely different from the intellectual property identified in the plaintiffs&rsquo; statement
of claim. On July 20, 2001, the Company filed a preliminary motion to dismiss the action of CTI as a nonexistent entity or, alternatively,
to stay such action on the grounds of want of authority of such entity to commence the action. The plaintiffs brought a cross
motion to amend the statement of claim to substitute Centrum Biotechnologies, Inc. (&ldquo;CBI&rdquo;) for CTI. CBI is a corporation
of which 50 percent of the shares are owned by the former business associate and the remaining 50 percent are owned by the Company.
Consequently, the shareholders of CBI are in a deadlock. The court granted the Company&rsquo;s motion to dismiss the action of
CTI and denied the plaintiffs&rsquo; cross motion without prejudice to the former business associate to seek leave to bring a
derivative action in the name of or on behalf of CBI. The former business associate subsequently filed an application with the
Ontario Superior Court of Justice for an order granting him leave to file an action in the name of and on behalf of CBI against
the VP and the Company. The Company opposed the application. In September 2003, the Ontario Superior Court of Justice granted
the request and issued an order giving the former business associate leave to file an action in the name of and on behalf of CBI
against the VP and the Company. A statement of claim was served in July 2004. The Company is not able to predict the ultimate
outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any, from this legal
proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In May 2011, Rose C. Perri, the
Company&rsquo;s former Chief Operating Officer and Chief Financial Officer, commenced two proceedings against the Company. On
May 11, 2011, Ms. Perri filed a notice of application in the Ontario Superior Court of Justice, Commercial List, against the Company,
two of its affiliates (1097346 Ontario, Inc. and Generex Pharmaceuticals Inc.), three of the Company&rsquo;s independent directors
(John P. Barratt, Nola Masterson and Brian T. McGee), the President and Chief Executive Officer (Mark A. Fletcher), the Chief
Operating Officer (David Brusegard) and the Acting Chief Financial Officer (Stephen Fellows). The application has since been abandoned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">On May 20, 2011, Ms. Perri filed
a statement of claim (subsequently amended) in the Ontario Superior Court of Justice, naming as defendants the Company, Mr. Barratt,
Ms. Masterson, Mr. McGee, and Mr. Fletcher. In this action, Ms. Perri has alleged that defendants engaged in discrimination, harassment,
bad faith and infliction of mental distress in connection with the termination of her employment with the Company. Ms. Perri is
seeking damages in this action in excess of $7,000,000 for, among other things, breach of contract, breach of fiduciary duty,
violations of the Ontario Human Rights Code and aggravated and punitive damages. On September 20, 2011, the defendants filed a
statement of defense and counterclaim, also naming Time Release Corp., Khazak Group Consulting Corp., and David Khazak, C.A. as
defendants by counterclaim, and seeking damages of approximately $2.3 million in funds that the defendants allege Ms. Perri wrongly
caused the Company to pay to third parties in varying amounts over several years and an accounting of certain third-party payments,
plus interests and costs. The factual basis for the counterclaim involves payments made by the Company to third parties believed
to be related to Ms. Perri. The Company intends to defend this action and pursue its counterclaim vigorously and is not able to
predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss,
if any, from this legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">On June 1, 2011, Golden Bull
Estates Ltd. filed a claim (subsequently amended) in the Ontario Superior Court of Justice, naming the Company, 1097346 Ontario,
Inc. and Generex Pharmaceuticals Inc. as defendants. The plaintiff, Golden Bull Estates, is controlled by Ms. Perri. The plaintiff
alleges damages in the amount of $550,000 for breach of contract, $50,000 for punitive damages, plus interest and costs. The plaintiff&rsquo;s
claims relate to an alleged contract between the plaintiff and the Company for property management services for certain Ontario
properties owned by the Company. The Company terminated the plaintiff&rsquo;s property management services in April 2011. Following
the close of pleadings, the Company served a motion for summary judgment. The plaintiff responded by amending its statement of
claim to include a claim to the Company&rsquo;s interest in certain of its real estate holdings. The plaintiff has brought a motion
for leave to issue and register a Certificate of Pending Litigation in respect of this real estate. The Company has responded
to the motion which was scheduled to be heard on March 22, 2012, but was postponed by the plaintiff and has not yet been rescheduled.
The Company is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount
or range of potential loss, if any, from this legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In August 2011, the estate of
Antonio Perri, the late father of Ms. Perri, commenced an action against Generex Pharmaceuticals, Inc., the law firm of Brans,
Lehun, Baldwin LLP and William Lehun in the Ontario Superior Court of Justice claiming that the estate is entitled to the proceeds
of sale (approximately $1,730,000) received by the Company on its sale of two properties to Golden Bull Estates Ltd., a company
controlled by Ms. Perri. The suit alleges that no consideration was received when the Company purchased the two properties from
Antonio Perri in 1998. The Company has responded to this statement of claim and intends to defend this action vigorously. The
Company is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range
of potential loss, if any, from this legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In December 2011, a vendor of
the Company&rsquo;s commenced an action against the Company and its subsidiary, Generex Pharmaceuticals, Inc., in the Ontario
Superior Court of Justice claiming damages for unpaid invoices including interest in the amount of $429,000, in addition to costs
and further interest. The Company has responded to this statement of claim and intends to defend this action vigorously. The Company
has also asserted a counterclaim in the proceeding for $200,000 arising from the vendor&rsquo;s breach of contract and detinue,
together with interest and costs. A hearing for the vendor&rsquo;s motion for summary judgment is scheduled for November 15, 2012.&nbsp;
The Company will be responding to the motion. The Company is not able to predict the ultimate outcome of this legal proceeding
at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company is involved in certain
other legal proceedings in addition to those specifically described herein. Subject to the uncertainty inherent in all litigation,
the Company does not believe at the present time that the resolution of any of these legal proceedings is likely to have a material
adverse effect on the Company&rsquo;s consolidated financial position, operations or cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">With respect to all litigation,
as additional information concerning the estimates used by the Company becomes known, the Company reassesses its position both
with respect to accrued liabilities and other potential exposures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>8.</B></TD><TD STYLE="text-align: justify"><B>Commitments</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
December 7, 2009, the Company entered into a long-term agreement with sanofi-aventis Deutschland GmbH (&ldquo;sanofi&rdquo;).
Under this agreement, sanofi-aventis will manufacture and supply recombinant human insulin to the Company in the territories specified
in the agreement. Through this agreement, the Company will procure recombinant human insulin crystals for use in the production
of Generex Oral-lyn&trade;. The terms of the supply agreement require the Company to make certain minimum purchases of insulin
from sanofi through the period ended December 31, 2011.</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">To date,
the Company has not met the minimum purchase commitments under this agreement. After December 31, 2011, sanofi may terminate the
agreement due to the Company&rsquo;s failure to meet such purchase commitments. Upon termination, the Company would be obligated
to pay sanofi for all materials and components that it has acquired or ordered to manufacture insulin based on the Company&rsquo;s
forecasts or minimum purchase commitments, all related work-in-progress (at cost) and all finished insulin in inventory. To date,
the Company has not provided forecasts to sanofi for the purchase of insulin and sanofi has not terminated the agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>9.</B></TD><TD STYLE="text-align: justify"><B>Net (Loss)/Income Per
                                                                       Share (&ldquo;EPS&rdquo;)</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">Basic earnings per share (&ldquo;EPS&rdquo;)
and Diluted EPS for the three-month period ended April 30, 2012 have been computed by dividing the net income available to common
stockholders for the period by the weighted average shares outstanding and the diluted weighted average shares outstanding during
that period, respectively. Per the treasury method of calculating Diluted EPS, 4,076 shares representing outstanding stock options
which have an exercise price lower than the average market price for the quarter ended April 30, 2012 are included in the calculation
of EPS. All remaining outstanding stock options and warrants which have out-of-the-money exercise prices and common stock underlying
convertible preferred stock, representing 95,111,892 incremental shares in aggregate, have been excluded from the April 30, 2012
computation of Diluted EPS, as they are anti-dilutive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: 139.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">Basic EPS and Diluted EPS for
the nine-month period ended April 30, 2012 and for the three- and nine-month periods ended April 30, 2011 have been computed by
dividing the net loss available to common stockholders for the period by the weighted average shares outstanding during that period.
All outstanding stock options, non-vested restricted stock, warrants and common stock underlying convertible preferred stock,
representing 95,115,968 incremental shares at April 30, 2012 and 65,084,765 incremental shares at April 30, 2011, have been excluded
from the respective computations of Diluted EPS as they are anti-dilutive, due to the losses generated during those periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>10.</B></TD><TD STYLE="text-align: justify"><B>Stockholders&rsquo;
                                                                        Deficiency</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt"><I>Common Stock</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">During the nine months ended
April 30, 2012, the Company issued or committed to issue 4,618,390 shares of common stock to various consultants for services
rendered in the amount of $606,545. The shares were valued at $0.09 to $0.17 per share based on the quoted market price of the
Company&rsquo;s common stock on the dates of the issuances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">During the nine months ended
April 30, 2012, the Company issued or committed to issue 494,626 shares of common stock valued at $68,483 as employee compensation.
The shares were valued at $0.09 to $0.15 per share based on the quoted market price of the Company&rsquo;s common stock on the
dates of the issuances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">During the nine months ended
April 30, 2012, the Company issued 20,459,431 shares of common stock in conjunction with a cashless exercise of 49,663,260 warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">During the nine months ended
April 30, 2012, the Company received aggregate cash proceeds of $30,000 from exercises of warrants at $0.15 per share.&nbsp;&nbsp;The
Company issued 200,000 shares of common stock as a result of these exercises.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">Stock option expense related
to executive and employee options granted in October 2009, resulting in a charge to operations during the nine-month period ended
April 30, 2012 of $56,961.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">During the nine months ended
April 30, 2012, the Company issued 8,580,002 shares of common stock in conjunction with the conversion of 1,287 shares of Series
A 9% Convertible Preferred Stock and 3,806,583 shares of common stock as dividend on Series A 9% Convertible Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">During the nine months ended
April 30, 2012, the Company recognized an increase in equity of $841,333 related to the partial exercise of the additional investment
rights related to the Company&rsquo;s July 2011 convertible preferred stock financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The stockholders&rsquo; deficiency
transactions as described above are summarized below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 91%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.63in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Additional</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Change to</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1pt solid">Common Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">Paid-In</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">Stockholders&rsquo;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Capital</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Equity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 52%; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Issuance of common stock on conversion
    of convertible preferred stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">8,580,002</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">8,580</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(8,580</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Issuance of common stock as dividend on convertible
    preferred stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,806,583</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,807</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">343,683</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">347,490</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Issuance of common stock for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,618,390</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,618</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">601,927</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">606,545</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Issuance of common stock in conjunction with cashless
    exercise of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,459,431</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,459</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,210,274</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,230,733</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Warrants exercised for cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Exercise of additional investment rights</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">841,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">841,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Issuance of common stock as employee compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">494,626</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">495</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">67,989</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,484</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Amortization of stock options
    as employee compensation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">56,961</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">56,961</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.25in">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38,159,032</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38,159</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,143,387</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,181,546</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The following is a summary of
warrants issued, forfeited or expired and exercised for the nine months ended April 30, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.63in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Warrants</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 82%; text-align: justify">Outstanding, August 1, 2011</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">99,955,190</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Issued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,777,773</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: justify">Forfeited or expired</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(100,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt">Exercised</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(49,863,260</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: justify; padding-bottom: 2.5pt">Outstanding, April 30, 2012</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">74,769,703</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: left">The outstanding warrants at April
30, 2012 have a weighted average exercise price of $0.33 per share and have a weighted average remaining life of 3.78 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: left"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">As of April 30, 2012, the Company
has 4,000,000 warrants with a current exercise price of $0.15 and an expiry date of January 16, 2016, 29,027,322 warrants with
a current exercise price of $0.15 and an expiry date of March 31, 2016, 3,333,331 warrants with a current exercise price of $0.15
and an expiry date of July 11, 2016, 5,454,544 warrants with a current exercise price of $0.15 and an expiry date of September
30, 2016 and 13,333,333 warrants with a current exercise price of $0.15 and an expiry date of February 2, 2017 (55,148,530 warrants
in total), which have price protection provisions that allow for the reduction in the current exercise price upon the occurrence
of certain events, including the Company&rsquo;s issuance of common stock or securities convertible into or exercisable for common
stock, such as options and warrants, at a price per share less than the exercise price then in effect. For instance, if the Company
issues shares of its common stock or options exercisable for or securities convertible into common stock at an effective price
per share of common stock less than the exercise price then in effect, the exercise price will be reduced to the effective price
of the new issuance. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be
purchased upon exercise of each of these warrants shall be increased proportionately, so that after such adjustment the aggregate
exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately
prior to such adjustment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company&rsquo;s issuance
of the following securities will not trigger the price protection provisions of the warrants described above that were issued
in connection with the March 2008 private placement: (a) shares of common stock or standard options to the Company&rsquo;s directors,
officers, employees or consultants pursuant to a board-approved equity compensation program or other contract or arrangement (up
to an aggregate amount of 5,608,926, representing 5% of the common stock issued and outstanding immediately prior to March 31,
2008); (b) shares of common stock issued upon the conversion or exercise of any security, right or other instrument convertible
or exchangeable into common stock (or securities exchangeable into common stock) issued prior to March 31, 2008; (c) the shares
of common stock issued upon exercise of the warrants issued in March 2008; and (d) shares of common stock and warrants in connection
with strategic alliances, acquisitions, mergers, and strategic partnerships, the primary purpose of which is not to raise capital,
and which are approved in good faith by the Company&rsquo;s board of directors (up to an aggregate number of 11,217,852, representing
10% of the shares of common stock issued and outstanding immediately prior to March 31, 2008). On July 8, 2011, the Company&rsquo;s
issuance of common stock triggered the price protection features of the warrants that were issued in March 2008 resulting in a
decrease of the exercise price from $0.25 to $0.15 per share and an increase in the number of warrants from 21,784,410 to 36,307,350.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company&rsquo;s issuance
of the following securities will not trigger the price protection provisions of the warrants issued on January 25, 2011 and in
March and April 2011: (I) (a) shares of common stock or options to employees, officers, or directors of the Company pursuant to
plans approved by a majority of the non-employee directors of the Company or pursuant to independent contractors pursuant to other
agreements or arrangements in existence as of January 24, 2011, (b) securities issued upon the exercise or exchange of or conversion
of any securities issued under the Securities Purchase Agreement dated January 24, 2011 and/or other securities exercisable or
exchangeable for or convertible into shares of common stock issued and outstanding on January 24, 2011, provided that such securities
have not been amended since their issue date through the date of conversion, exercise or exchange to increase the number of such
securities or to decrease the exercise price, exchange price or conversion price of such securities (except certain adjustments
to warrants expiring in March 2016 and September 2016 are not prohibited), and (c) shares of common stock or warrants to trade
vendors of the Company approved by a majority of the non-employee members of the Board of Directors; provided that (II) (i) the
shares issued under paragraphs I(a) and I(c) shall not, in the aggregate exceed 1,500,000 shares in each 30-day period during
the first 90 days after January 24, 2011, (ii) there is a reasonable relationship between the value of the common stock or options
issued pursuant to paragraphs I(a) and I(c) and the value of services rendered or goods provided and (iii) the Company does not
rely in whole or in part on the exemptions provided in Sections 3(a)(9) or 3(a)(10) of the Securities Act. On July 8, 2011, the
Company&rsquo;s issuance of common stock triggered the price protection features of the warrants that were issued on January 25,
2011 and in March and April 2011 resulting in a decrease of the exercise price from $0.25 to $0.15 per share and an increase in
the number of warrants from 16,056,000 to 26,760,001.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company&rsquo;s issuance
of the following securities will not trigger the price protection provisions of the warrants issued on July 8, 2011: (I)(a) shares
of common stock or options to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted
for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee
of non-employee directors established for such purpose, (b) shares of common stock issued to the vendors identified in Securities
Purchase Agreement dated July 8, 2011, in the periodic amounts set forth therein, (c) securities upon the exercise or exchange
of or conversion of any Securities issued under the Securities Purchase Agreement dated July 8, 2011 and/or other securities exercisable
or exchangeable for or convertible into shares of common stock issued and outstanding on July 8, 2011, provided that such securities
have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price,
exchange price or conversion price of such securities, and (d) securities issued pursuant to acquisitions or strategic transactions
approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a person
(or to the equityholders of a person) which is, itself or through its subsidiaries, an operating company or an owner of an asset
in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to
the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in securities. On February 1, 2012, the triggering of the
price protection features of the warrants that were issued in July 2011 resulted in a decrease of the exercise price from $0.25
to $0.15 per share and an increase in the number of warrants from 17,166,666 to 28,611,106.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company&rsquo;s issuance
of the following securities will not trigger the price protection provisions of the warrants issued on February 2, 2012: (I)(a)
shares of common stock or options to employees, officers or directors of the Company pursuant to any stock or option plan duly
adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of
a committee of non-employee directors established for such purpose, (b) shares of common stock issued to the vendors identified
in Securities Purchase Agreement dated January 31, 2012, in the periodic amounts set forth therein, (c) securities upon the exercise
or exchange of or conversion of any Securities issued under the Securities Purchase Agreements dated July 8, 2011 and January
31, 2012 and/or other securities exercisable or exchangeable for or convertible into shares of common stock issued and outstanding
on February 2, 2012, provided that such securities have not been amended since the date of this Agreement to increase the number
of such securities or to decrease the exercise price, exchange price or conversion price of such securities, and (d) securities
issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company,
provided that any such issuance shall only be to a person (or to the equityholders of a person) which is, itself or through its
subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall
provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which
the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing
in securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company accounts for the
warrants with price protection provisions in accordance with FASB ASC Topic 815 as described in <I>Note 11 - Derivative Liabilities
</I>below. As of April 30, 2012, there were a total of 55,148,530 warrants with an estimated fair value of $4,603,470, which are
identified on the consolidated balance sheet under the caption &ldquo;Derivative Warrant Liability&rdquo;. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>Series A 9% Convertible Preferred
Stock</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company has authorized 5,500
shares of Series A 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities
purchase agreement dated July 8, 2011, the Company sold an aggregate of 2,575 shares of convertible preferred stock, as well as
accompanying warrants to purchase 17,166,666 shares of common stocks. An aggregate of 17,166,666 shares of the Company&rsquo;s
common stock were issuable upon conversion of the convertible preferred stock which was issued at the initial closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">Subject to certain ownership
limitations, the convertible preferred stock is convertible at the option of the holder at any time into shares of the Company&rsquo;s
common stock at an effective conversion price of $0.15 per share, and will accrue a 9% dividend until July 8, 2014 and, beginning
on July 8, 2014 and on each one year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend
is payable quarterly on September 30, December 31, March 31 and June 30, beginning on September 30, 2011 and on each conversion
date in cash, or at the Company&rsquo;s option, in shares of common stock. In the event that the convertible preferred stock is
converted prior to July 8, 2014, the Company will pay the holder of the converted preferred stock an amount equal to $270 per
$1,000 of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid on such converted
preferred stock before the relevant conversion date. Such &ldquo;make-whole payment&rdquo; may be made in cash or, at the Company&rsquo;s
option, in shares of its common stock. In addition, beginning July 8, 2014, the Company will pay dividends on shares of preferred
stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than dividends in the form
of common stock) actually paid on shares of the common stock when, and if such dividends are paid. The Company will incur a late
fee of 18% per annum on unpaid dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The conversion price of the convertible
preferred stock is subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization
transactions and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if the Company
sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective
price per share that is lower than the then conversion price, except in the event of certain exempt issuances. In addition, the
holders of convertible preferred stock will be entitled to receive any securities or rights to acquire securities or property
granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had converted
all of their shares of convertible preferred stock. In the event of a fundamental transaction, such as a merger, consolidation,
sale of substantially all assets and similar reorganizations or recapitalizations, the holders of convertible preferred stock
will be entitled to receive, upon conversion of their shares, any securities or other consideration received by the holders of
the Company&rsquo;s common stock pursuant to the fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company may become obligated
to redeem the convertible preferred stock in cash upon the occurrence of certain triggering events, including the failure to provide
an effective registration statement covering shares of common stock issuable upon conversion of the convertible preferred stock,
material breach of certain contractual obligations to the holders of the convertible preferred stock, the occurrence of a change
in control of the Company, the occurrence of certain insolvency events relating to the Company, or the failure of the Company&rsquo;s
common stock to continue to be listed or quoted for trading on one or more specified United States securities exchanges or regulated
quotation service. Upon the occurrence of certain triggering events, each holder of convertible preferred stock will have the
option to redeem such holder&rsquo;s shares of convertible preferred stock for a redemption price payable in shares of common
stock or receive an increased dividend rate of 18% on all of such holder&rsquo;s outstanding convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In conjunction with the issuance
of the Series A convertible preferred stock, the Company also issued 17,166,666 warrants to the investors. Subject to certain
ownership limitations, the warrants will be exercisable at any time after their date of issuance and on or before the fifth-year
anniversary thereafter at an exercise price of $0.15 per share of common stock. The exercise price of the warrants and, in some
cases, the number of shares issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends, combinations
of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The exercise price
and number of shares of common stock issuable upon exercise will also be adjusted if the Company sells or grants any shares of
common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant holders will be entitled
to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders
of its common stock to the same extent as if such holders had exercised all of their warrants. In the event of a fundamental transaction,
such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the warrant
holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received by the holders
of the Company&rsquo;s common stock pursuant to the fundamental transaction. These warrants have been classified as derivative
liabilities and are described further in<I> Note 11 &ndash; Derivative Liabilities</I><B>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In addition, until the first
anniversary of date of the securities purchase agreement, each investor may, in its sole determination, elect to purchase, severally
and not jointly with the other investors, in one or more purchases, in the ratio of such investor's original subscription amount
to the original aggregate subscription amount of all investors, additional units consisting of convertible preferred stock and
warrants at a purchase price of $1,000 per unit with an aggregate subscription amount thereof of up to $2,575,000, which units
will have terms identical to the units of convertible preferred stock and warrants issued in connection with the July 2011 closing.
These additional investment rights of the investors have been classified as derivative liabilities and are described further in
<I>Note 11 &ndash; Derivative Liabilities</I><B>. </B>On February 2, 2012, the investors exercised $2,000,000 of the additional
investment rights in the Series B 9% Convertible Preferred Stock financing described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">As of April 30, 2012, 17,166,666
shares of common stock had been issued upon the conversion of 2,575 shares of Series A convertible preferred stock and 6,129,666
shares of common stock were issued as &ldquo;make whole payments&rdquo; on such conversions of the convertible preferred stock.
As of April 30, 2012, all of the Series A 9% Convertible Preferred Stock had been converted. At July 31, 2011, there were 1,287
shares of Series A convertible preferred stock outstanding which were discounted at 100% of their face value of $1,287,000 and
were classified in equity on the consolidated balance sheet under the caption &ldquo;Series A 9% Convertible Preferred Stock&rdquo;.
At July 31, 2011, the &ldquo;make whole payments&rdquo; on the remaining Series A convertible preferred stock in the amount of
$347,490 are included in Accounts Payable and Accrued Expenses (see Note 6). The total make whole payments at the date of issuance,
in the amount of $695,250, were accrued on the issuance date, with such amount allocated as described directly below, when accounting
for the initial proceeds from the convertible preferred stock financing. The September 30, 2011 quarterly dividend payment of
$12,383, as pro-rated for the period from July 8, to September 30, 2011, was paid in shares of the Company&rsquo;s common stock.
There was no dividend payment on December 31, 2011, as all of the Series A convertible preferred stock had been converted prior
to that date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>Series B 9% Convertible Preferred
Stock</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company has authorized 2,000
shares of Series B 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities
purchase agreement dated January 31, 2012, the Company sold an aggregate of 2,000 shares of Series B convertible preferred stock,
as well as accompanying warrants to purchase 13,333,333 shares of common stocks. An aggregate of 13,333,333 shares of the Company&rsquo;s
common stock were issuable upon conversion of the Series B convertible preferred stock which was issued at the initial closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">Subject to certain ownership
limitations, the convertible preferred stock is convertible at the option of the holder at any time into shares of the Company&rsquo;s
common stock at an effective conversion price of $0.15 per share, and will accrue a 9% dividend until February 1, 2015 and, beginning
on February 2, 2015 and on each one year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend
is payable quarterly on September 30, December 31, March 31 and June 30, beginning on March 31, 2012 and on each conversion date
in cash, or at the Company&rsquo;s option, in shares of common stock. In the event that the convertible preferred stock is converted
prior to February 1, 2015, the Company will pay the holder of the converted preferred stock an amount equal to $270 per $1,000
of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid on such converted preferred
stock before the relevant conversion date. Such &ldquo;make-whole payment&rdquo; may be made in cash or, at the Company&rsquo;s
option, in shares of its common stock. In addition, beginning February 1, 2015, the Company will pay dividends on shares of preferred
stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than dividends in the form
of common stock) actually paid on shares of the common stock when, and if such dividends are paid. The Company will incur a late
fee of 18% per annum on unpaid dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The conversion price of the convertible
preferred stock is subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization
transactions and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if the Company
sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective
price per share that is lower than the then conversion price, except in the event of certain exempt issuances. In addition, the
holders of convertible preferred stock will be entitled to receive any securities or rights to acquire securities or property
granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had converted
all of their shares of convertible preferred stock. In the event of a fundamental transaction, such as a merger, consolidation,
sale of substantially all assets and similar reorganizations or recapitalizations, the holders of convertible preferred stock
will be entitled to receive, upon conversion of their shares, any securities or other consideration received by the holders of
the Company&rsquo;s common stock pursuant to the fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company may become obligated
to redeem the convertible preferred stock in cash upon the occurrence of certain triggering events, including the failure to provide
an effective registration statement covering shares of common stock issuable upon conversion of the convertible preferred stock,
material breach of certain contractual obligations to the holders of the convertible preferred stock, the occurrence of a change
in control of the Company, the occurrence of certain insolvency events relating to the Company, or the failure of the Company&rsquo;s
common stock to continue to be listed or quoted for trading on one or more specified United States securities exchanges or regulated
quotation service. Upon the occurrence of certain triggering events, each holder of convertible preferred stock will have the
option to redeem such holder&rsquo;s shares of convertible preferred stock for a redemption price payable in shares of common
stock or receive an increased dividend rate of 18% on all of such holder&rsquo;s outstanding convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In conjunction with the issuance
of the Series B convertible preferred stock, the Company also issued 13,333,333 warrants to the investors. Subject to certain
ownership limitations, the warrants will be exercisable at any time after their date of issuance and on or before the fifth-year
anniversary thereafter at an exercise price of $0.15 per share of common stock. The exercise price of the warrants and, in some
cases, the number of shares issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends, combinations
of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The exercise price
and number of shares of common stock issuable upon exercise will also be adjusted if the Company sells or grants any shares of
common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant holders will be entitled
to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders
of its common stock to the same extent as if such holders had exercised all of their warrants. In the event of a fundamental transaction,
such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the warrant
holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received by the holders
of the Company&rsquo;s common stock pursuant to the fundamental transaction. These warrants have been classified as derivative
liabilities and are described further in<I> Note 11 &ndash; Derivative Liabilities</I><B>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">As of April 30, 2012, none of
the Series B convertible preferred stock had been converted to common stock. The make whole payments at the date of issuance,
in the amount of $540,000, were accrued on the issuance date and are included in Accounts Payable and Accrued Expenses (see Note
6). The &ldquo;make whole&rdquo; amount was allocated as described directly below, when accounting for the initial proceeds from
the Series B convertible preferred stock financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>Accounting for proceeds from
the Series A convertible preferred stock financing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The net cash proceeds from the
Series A convertible preferred stock financing were $2,315,000. The proceeds from the financing were allocated first to the warrants
that were issued in the financing, second to the additional investment rights associated with the financing and third to the make
whole payments. As the assigned fair values were greater than the net cash proceeds from the transaction, the excess was treated
as a &ldquo;deemed dividend&rdquo; for accounting purposes and is reported on the Company&rsquo;s consolidated statement of operations
for the year ended July 31, 2011 under the caption &ldquo;Preferred Stock Dividend&rdquo;. The calculation methodologies for the
fair values of the derivative warrant liability and the derivative additional investment rights liability are described in <I>Note
11 &ndash; Derivative Liabilities</I> below. The fair values assigned to each component and the calculation of the amount of the
deemed dividend are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 75%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.88in">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: left; text-indent: 0.9pt">Accounting allocation of initial
    proceeds</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 82%; text-align: left; text-indent: 0.9pt">Net proceeds</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">2,315,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: 0.9pt">Derivative warrant liability fair value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,871,167</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0.9pt">Derivative additional investment rights fair value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(515,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 0.9pt">Make whole payments liability</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(695,250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 0.9pt">Deemed dividend</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(766,417</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: left; text-indent: -49.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>Accounting for proceeds from
the Series B convertible preferred stock financing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The net cash proceeds from the
Series B convertible preferred stock financing were $1,975,000. The proceeds from the financing were allocated first to the warrants
that were issued in the financing and second to the make whole payments. As the assigned fair values were greater than the net
cash proceeds from the transaction, the excess was treated as a &ldquo;deemed dividend&rdquo; for accounting purposes and is reported
on the Company&rsquo;s consolidated statements of operations for the three and nine-month periods ended April 30, 2012 under the
caption &ldquo;Preferred Stock Dividend&rdquo;. The calculation methodologies for the fair values of the derivative warrant liability
and the derivative additional investment rights liability are described in <I>Note 11 &ndash; Derivative Liabilities</I> below.
The fair values assigned to each component and the calculation of the amount of the deemed dividend are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 75%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.88in">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: left; text-indent: 0.9pt">Accounting allocation of initial
    proceeds</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 82%; text-align: left; text-indent: 0.9pt">Net proceeds</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">1,975,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: 0.9pt">Derivative warrant liability fair value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,811,746</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 0.9pt">Make whole payments liability</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(540,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 0.9pt">Deemed dividend</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(376,
                                                                               746)</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>11.</B></TD><TD STYLE="text-align: justify"><B>Derivative Liabilities</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>Derivative warrant liability</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company has warrants outstanding
with price protection provisions that allow for the reduction in the exercise price of the warrants in the event the Company subsequently
issues stock or securities convertible into stock at a price lower than the exercise price of the warrants. Simultaneously with
any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these
warrants shall be increased or decreased proportionately, so that after such adjustment the aggregate exercise price payable for
the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><B>Accounting for Derivative
Warrant Liability</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company&rsquo;s derivative
warrant instruments have been measured at fair value at April 30, 2012 and July 31, 2011 using the binomial lattice model. The
Company recognizes all of its warrants with price protection in its consolidated balance sheets as a liability. The liability
is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of operations.
The initial recognition and subsequent changes in fair value of the derivative warrant liability have no effect on the Company&rsquo;s
consolidated cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The derivative warrants outstanding
at April 30, 2012 are all currently exercisable with a weighted-average remaining life of 4.2 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The revaluation of the warrants
at each reporting period, as well as the charges associated with issuing additional warrants due to the price protection features,
resulted in the recognition of loss of $1,276,950 within the Company&rsquo;s consolidated statements of operations for the nine
months ended April 30, 2012 and income of $1,993,920 for the nine months ended April 30, 2011, which is included in the total
under the caption &ldquo;Change in fair value of derivative liabilities&rdquo;. The fair value of the warrants at April 30, 2012
and July 31, 2011 was $4,603,470 and $8,745,508, respectively, which is reported on the consolidated balance sheets under the
caption &ldquo;Derivative Warrant Liability&rdquo;. The following summarizes the changes in the value of the derivative warrant
liability from August 1, 2010 until April 30, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="RIGHT" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">No. of Warrants</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 64%; text-align: left">Balance at August 1, 2010 &ndash; Derivative warrant liability</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">5,679,721</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">16,503,340</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additional warrants issued in January to April 2011 financings</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,415,536</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,056,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Additional warrants issued in July 2011 financing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,871,167</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,166,666</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additional warrants from price protection features of existing warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,867,678</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,508,011</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Decrease in fair value of derivative warrant liability</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(6,088,594</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">n/a</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Balance at July 31, 2011 &ndash; Derivative warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,745,508</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80,234,017</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Exercise of warrants classified as derivative liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,230,734</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(49,863,260</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additional warrants issued in February 2012 financing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,811,746</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,333,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Additional warrants from price protection features of existing warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,548,813</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,444,440</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Decrease in fair value of derivative warrant liability</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(271,863</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">n/a</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Balance at April 30, 2012 &ndash; Derivative warrant liability</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4,603,470</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">55,148,530</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE><BR STYLE="clear: both">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><B>Fair Value Assumptions Used
in Accounting for Derivative Warrant Liability </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company has determined its
derivative warrant liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model to calculate
the fair value as of April 30, 2012 and July 31, 2011. The binomial lattice model requires six basic data inputs: the exercise
or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock
price in the future, and the dividend rate. Because the warrants contain the price protection feature, the probability that the
exercise price of the warrants would decrease as the stock price decreased was incorporated into the valuation calculations. The
key inputs used in the April 30, 2012 and July 31, 2011 fair value calculations were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.5pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="RIGHT" STYLE="border-collapse: collapse; width: 75%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">April 30, 2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">July 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 58%; text-align: left">Current exercise price</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 18%; text-align: right">0.15</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 18%; text-align: right">$0.15 and $0.25</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Time to expiration</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.2 years</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.7 years</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Risk-free interest rate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.60</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.23</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Estimated volatility</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Dividend</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-0-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-0-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stock price at period end date</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.102</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.13</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE><BR STYLE="clear: both">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><I>Derivative additional investment
rights liability</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The benefit received by the participants
in the July 2011 Series A 9% Convertible Preferred Stock transaction (see Note 10) in respect to the right to make an additional
investment with the same terms as the July 2011 transaction was determined to be an embedded derivative instrument and has been
measured at fair value using the binomial lattice model. The liability will be revalued at each subsequent reporting period prior
to its expiry in July 2012 and any changes in fair value will be recognized in the consolidated statements of operations. The
initial recognition and subsequent changes in fair value of the derivative additional investment rights liability have no effect
on the Company&rsquo;s cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><B>Fair Value Assumptions Used
in Accounting for Derivative Additional Investment Rights Liability</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The Company has determined the
derivative additional investment rights liability to be a Level 2 fair value measurement and has used the binominal lattice pricing
model<FONT STYLE="color: black"> to measure the fair value. The fair value of the derivative liability associated with the additional
investment rights was determined to be $515,000 at July 31, 2011 and $437 at April 30, 2012. </FONT>The key inputs used in the
fair value calculations were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.5pt; text-align: left">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(A DEVELOPMENT STAGE COMPANY)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.5pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="RIGHT" STYLE="border-collapse: collapse; width: 82%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">April 30, 2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">July 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 58%; text-align: left">Underlying number of units of convertible preferred stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 18%; text-align: right">575</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 18%; text-align: right">2,575</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Underlying number of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,833,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,166,667</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Current exercise price of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.25</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current conversion price of preferred stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Time to expiration</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.19 years</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.0 years</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Risk-free interest rate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.09</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.23</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Estimated volatility</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Dividend</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-0-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-0-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Stock price</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.102</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.13</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE><BR STYLE="clear: both"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The revaluation of the additional
investment rights at the April 30, 2012 reporting period, resulted in the recognition of a gain of $326,770 within the Company&rsquo;s
consolidated statements of operations for the nine months ended April 30, 2012, which is included in the total under the caption
&ldquo;Change in fair value of derivative liabilities&rdquo;. In addition, $841,333 was transferred to equity, as a result of
the partial exercise of the additional investment rights in the nine months ended April 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>12.</B></TD><TD STYLE="text-align: justify"><B>Other Current Assets
                                                                        </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: left">Other current assets consist of
the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 91%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.63in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">April 30, 2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">July 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 62%; text-align: left">Mortgage loan origination fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">102,895</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Prepaid insurance, deposits and taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">193,395</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">225,052</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">296,290</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">225,052</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The mortgage loan origination
fees include legal and other lender fees related to the mortgage loan financing which closed on January 19, 2012, which have been
capitalized and are being amortized over the twelve month term of the loan to January 18, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>13.</B></TD><TD STYLE="text-align: justify"><B>Income from Assets
                                                                        Held for Investment, net </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In March and April, 2012, the
Company sold nine commercial condominium units which were held for investment for gross proceeds after real estate commissions
of $2,865,682. These properties had a net book value of $1,783,932, resulting in an accounting gain of $1,081,750 which is included
in income from assets held for investment, net on the consolidated statement of operations. The net proceeds after commissions
and other expenses were used to discharge or partially discharge the first and second mortgages on the properties. There were
two first mortgages on the properties, with combined remaining principals of CAD$568,836, which were discharged completely upon
sale. The remaining net proceeds of CAD$2,180,051 after expenses and the discharge of the first mortgages was used to partially
discharge the second mortgage and the Company did not receive any of the net proceeds from these property sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">In August 2011, the Company sold
two properties which were held for investment for gross proceeds after real estate commissions of $1,669,115. These two properties
had a net book value of $1,029,435, resulting in an accounting gain of $639,680 which is included in income from assets held for
investment, net on the consolidated statement of operations. The two properties had mortgages of $659,288 which were discharged
upon sale, resulting in net cash proceeds to the Company of $1,009,827.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">The remaining income of $207,420
in this category in the nine months ended April 30, 2012, pertains to rental income from properties held for investment, net of
carrying and operating expenses, compared to $236,732 in the prior year period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.38in"></TD><TD STYLE="width: 0.25in"><B>14.</B></TD><TD STYLE="text-align: justify"><B>Subsequent Events</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt">The Company has evaluated subsequent events occurring
after the balance sheet date through the date the interim consolidated financial statements were issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Resale of 88,121,621&nbsp;Shares of&nbsp;Common
Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">__________, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>You should rely only on the information contained in this
prospectus. No dealer, salesperson or other person is authorized to give information that is not contained in this prospectus.
This prospectus is not an offer to sell nor is it seeking an offer to buy these securities in any jurisdiction where the offer
or sale is not permitted. The information contained in this prospectus is correct only as of the date of this prospectus, regardless
of the time of the delivery of this prospectus or the sale of these securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM&nbsp;14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">The following table sets forth all costs
and expenses to be incurred by Generex in connection with the preparation and filing of this Registration Statement. All amounts
shown are estimates except for the SEC registration fee. We will pay all expenses in connection with the distribution of the shares
of common stock being registered hereby, except for the fees and expenses of any counsel and other advisors that any Selling Security
Holders may employ to represent them in connection with the offering and any brokerage or underwriting discounts or commissions
paid to broker-dealers in connection with the sale of the shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 82%; text-align: left">SEC Registration Fee </TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">712</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Printing and Engraving Expenses </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Accountants&rsquo; Fees and Expenses </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Legal Fees and Expenses </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 1pt">Miscellaneous </TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,788</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total Expenses </TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">40,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM&nbsp;15. INDEMNIFICATION OF DIRECTORS AND OFFICERS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General Corporation Law of Delaware</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">Section 145 of the Delaware General Corporation
Law authorizes a corporation to indemnify its directors, officers, employees or other agents in terms sufficiently broad to permit
indemnification (including reimbursement for expenses incurred) under certain circumstances for liabilities arising under the Securities
Act. Our Amended and Restated By-Laws provide indemnification of our directors and officers to the maximum extent permitted by
the Delaware General Corporation Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>By-Laws</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">Article V of our Amended and Restated By-Laws
provides that Generex shall indemnify any person who was or is a party or threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (collectively, a &quot;proceeding&quot;),
by reason of the fact such person is or was (a) a director or executive officer of Generex or a constituent corporation absorbed
in a consolidation or merger (hereinafter, a &quot;constituent corporation&quot;), or, (b) is or was serving at the request of
Generex or a constituent corporation as a director, officer, partner, employee or agent of another corporation, partnership, joint
venture or other enterprise or entity, or (c) is or was a director or officer of Generex serving at its request as an administrator,
trustee or other fiduciary of one or more of the employee benefit plans, if any, of Generex or another entity which may be in effect
from time to time, against all expenses, liability and loss actually and reasonably incurred or suffered by such person in connection
with such proceeding, whether or not the indemnified liability arises or arose from any proceeding by or in the right of Generex,
to the extent that such person is not otherwise indemnified and to the extent that such indemnification is not prohibited by law
as it presently exists or may hereafter be amended. We shall advance all expenses reasonably incurred by a person entitled to indemnification
as provided above in defending a proceeding in advance of the final disposition of such proceeding, and may, but shall not be obligated
to, advance expenses of other persons entitled to indemnification pursuant to any other agreement or provision of law. To determine
whether any indemnification under Article V of our Amended and Restated By-Laws is permissible, our Board of Directors by a majority
vote of a quorum consisting of directors not parties to such proceeding may, and on request of a person seeking indemnification
shall be required to, determine in each case whether the applicable standards in any applicable statute have been met, or such
determination shall be made by independent legal counsel if such quorum is not obtainable, or, even if obtainable, a majority vote
of a quorum of disinterested directors so directs. If a claim for indemnification under Article V of our Amended and Restated By-Laws
is not paid in full within ninety (90) days after a written claim therefore has been received by us, the claimant may file suit
to recover the unpaid amount of such claim, and we shall have the burden of proving that the claimant was not entitled to the requested
indemnification under applicable law. The reasonable expenses of any person in prosecuting a successful claim for indemnification
thereunder, and the fees and expenses of any independent legal counsel engaged to determine permissibility of indemnification,
shall be borne by us. For purposes of Article V of our Amended and Restated By-Laws, &quot;independent legal counsel&quot; means
legal counsel other than that regularly or customarily engaged by or on behalf of Generex. Notwithstanding any other provision
of Article V, we shall be required to indemnify a person in connection with a proceeding initiated by such person only if the proceeding
was authorized by the Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">Article V of our Amended and Restated By-Laws
further provides that indemnification provided therein shall not be deemed exclusive of any other right to which one seeking indemnification
may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, the By-Laws, agreement, vote of
stockholders or disinterested directors or otherwise, and shall inure to the benefit of the heirs, executors and administrators
of any such person. Any modification or repeal of any provision of Article V of our Amended and Restated By-Laws shall not adversely
affect any right or protection of an authorized representative existing thereunder with respect to any act or omission occurring
prior to such modification or repeal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">Pursuant to Article V of our Amended and
Restated By-Laws, our Board of Directors has the power to (i) authorize the company to purchase and maintain, at the company&rsquo;s
expenses, insurance on behalf of the company and on behalf of others to the extent that power to do so has not been prohibited
by applicable law, and (ii) give other indemnification to the extent not prohibited by applicable law. We currently maintain insurance
under which the insurers will reimburse us for amounts that it has paid to its directors and officers as indemnification for claims
against such persons in their official capacities. The insurance also covers such persons as to amounts paid by them as a result
of claims against them in their official capacities that are not reimbursed by us. The insurance is subject to certain limitations
and exclusions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;15. Recent Sales of Unregistered Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 6pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font-size: 6pt">
    <TD NOWRAP STYLE="width: 8%; font-size: 6pt">
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">Date of Sale</P></TD>
    <TD ID="_x0000_s3074" NOWRAP STYLE="width: 1%; text-align: center; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; font-size: 6pt">
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Title of Security</P></TD>
    <TD ID="_x0000_s3075" NOWRAP STYLE="width: 1%; text-align: center; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; font-size: 6pt">
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Amount of</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Securities Sold</P></TD>
    <TD ID="_x0000_s3076" NOWRAP STYLE="width: 1%; text-align: center; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 21%; font-size: 6pt">
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">Aggregate Consideration</P></TD>
    <TD ID="_x0000_s3077" NOWRAP STYLE="width: 1%; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; font-size: 6pt">
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">Exemption</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">Under the</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">Securities Act</P></TD>
    <TD ID="_x0000_s3078" NOWRAP STYLE="width: 1%; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 25%; font-size: 6pt">
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">Purchaser/Recipient</P></TD>
    <TD ID="_x0000_s3079" NOWRAP STYLE="width: 1%; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; font-size: 6pt">
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">Nature of Purchase/Recipient</P></TD>
    <TD ID="_x0000_s3080" NOWRAP STYLE="width: 1%; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; font-size: 6pt">
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">Terms of</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">Conversion</P>
        <P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0">or Exercise</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Aug 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Aug 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">100,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Ventures and Projects Management Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Sep 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Sep 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">83,335</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$60,126</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">The Investor Relations Group, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Sep 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">200,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Ventures and Projects Management Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Sep 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">200,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Ventures and Projects Management Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">250,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Oceanus Capital LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">15,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Forman Foresight LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">37,500</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Quarterly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">The Abajian Group, LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Nov 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">39,144</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$24,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Nov 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Nov 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Dec 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">10,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Forman Foresight LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Dec 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">39,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Luxury Air Jets Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Dec 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Dec 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">10,565</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Dec 2009</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">5,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Forman Foresight LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">9,615</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">37,500</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Quarterly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">The Abajian Group, LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Warrant</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">1,000,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Advisor Associates Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">**</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Feb 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">9,921</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Feb 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Feb 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Mar 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">10,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Forman Foresight LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Mar 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">483,871</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$300,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Assured Pharmacy Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Mar 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">300,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Moscato Marsh &amp; Partners Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Mar 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">200,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Moscato Marsh &amp; Partners Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Mar 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Mar 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">9,977</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Mar 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Apr 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Apr 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">5,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Forman Foresight LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Apr 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">12,637</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Apr 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">37,500</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Quarterly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">The Abajian Group, LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Apr 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">5,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Forman Foresight LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Apr 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">May 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">15,752</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">May 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">May 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">May 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">5,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Forman Foresight LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jul 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">54,545</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$18,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Health Management Resources Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jun 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jun 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">15,385</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jun 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jul 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jun 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">5,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Forman Foresight LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jul 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">18,912</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jul 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">37,500</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Quarterly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">The Abajian Group, LLC</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jul 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">May 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">14,881</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Aug 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Aug 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Sep 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Sep 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">13,239</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Sep 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">60,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">73,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$32,850</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Market Update Network Corp.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Vendor, partial consideration</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Craig Eagle</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">15,024</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">300,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Moscato Marsh &amp; Partners Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">2,500,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Nov 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">19,119</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Nov 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Nov 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Dec 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Dec 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">19,950</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Dec 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2010</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">21,189</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Feb 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">25,647</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Feb 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">4,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">American Capital Ventures, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Consultant</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Mar 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">300,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Mar 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">25,479</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Apr 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">26,557</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Apr 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">May 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">155,556</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$35,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Market Update Network Corp.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Vendor</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">May 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">27,059</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">May 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jun 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jun 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">33,569</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">July 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">41,827</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">July 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Aug 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">55,081</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$6,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Beckerman Public Relations</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Aug 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Sep 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Oct 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Nov 2011</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2012</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">300,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Jan 2012</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">1,333,333</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$200,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Financing finder's fee</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Feb 2012</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Apr 2012</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">300,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">Feb 2012</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">1,066,667</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">$160,000</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Financing finder's fee</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">May 2012</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">150,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204); font-size: 6pt">
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 6pt">Jul 2012</TD>
    <TD ID="_x0000_s3074" STYLE="padding-bottom: 1pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-bottom: 1pt; font-size: 6pt">Common Stock</TD>
    <TD ID="_x0000_s3075" STYLE="padding-bottom: 1pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; font-size: 6pt">300,000</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; padding-bottom: 1pt; font-size: 6pt">&nbsp;</TD>
    <TD STYLE="font-size: 6pt">Monthly services per contract</TD>
    <TD ID="_x0000_s3077" STYLE="padding-bottom: 1pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 6pt">Section 4 (2) *</TD>
    <TD ID="_x0000_s3078" STYLE="padding-bottom: 1pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 6pt">Seahawk Capital Partners, Inc.</TD>
    <TD ID="_x0000_s3079" STYLE="padding-bottom: 1pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 6pt">Investor relations</TD>
    <TD ID="_x0000_s3080" STYLE="padding-bottom: 1pt; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font-size: 6pt">
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD>
    <TD ID="_x0000_s3074" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; font-size: 6pt">&nbsp;</TD>
    <TD ID="_x0000_s3075" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; font-size: 6pt">13,275,836</TD>
    <TD ID="_x0000_s3076" STYLE="text-align: right; font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD>
    <TD ID="_x0000_s3077" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD>
    <TD ID="_x0000_s3078" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD>
    <TD ID="_x0000_s3079" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD>
    <TD ID="_x0000_s3080" STYLE="font-size: 6pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 6pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* We believe this investor is an &ldquo;accredited investor&rdquo;
as that term is defined in Rule 501(a) of Regulation D under the Securities Act.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">** We issued a common stock purchase warrant to Advisor Associates,
Inc. a consultant, pursuant to an agreement to provide us with financial services. In accordance with the agreement, which extended
until May 31, 2010, we issued Advisor Associates a warrant to purchase 1,000,000 shares of common stock at an exercise price of
$0.001 per share. The warrant was immediately exercisable upon issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 16. Exhibits and Financial Statement Schedules.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibits are filed as part of, or incorporated
by reference into this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="width: 8%; vertical-align: bottom; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 1%; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 91%; vertical-align: bottom; border-bottom: black 1pt solid; font-weight: bold"><B>Description of Exhibit<SUP>(1)</SUP></B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="color: red; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>1.1</TD>
    <TD>&nbsp;</TD>
    <TD>Placement Agency Agreement, dated May 5, 2009, by and between Generex Biotechnology Corporation and Rodman &amp; Renshaw (incorporated by reference to Exhibit 1.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on May 18, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>1.2</TD>
    <TD>&nbsp;</TD>
    <TD>Placement Agency Agreement, dated June 8, 2009, by and between Generex Biotechnology Corporation and Midtown Partners &amp; Co., LLC and amendments dated August 5, August 18, and September 11, 2009 (incorporated by reference to Exhibit 1.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on September 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>1.3</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment dated as of April 7, 2010 to Placement Agent Agreement attached as Exhibit 1.2 hereto (incorporated by reference .reference to Exhibit 1.2 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on April 8, 2010)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">1.4</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Placement Agency Agreement dated September 11, 2009, by and between Generex Biotechnology Corporation and Maxim Group LLC. (incorporated by reference to Exhibit 1.2 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on September 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>2</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement and Plan of Merger among Generex Biotechnology Corporation, Antigen Express, Inc. and AGEXP Acquisition Inc. (incorporated by reference to Exhibit 2.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on August 15, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3(i)(a)</TD>
    <TD>&nbsp;</TD>
    <TD>Restated Certificate of Incorporation of Generex Biotechnology Corporation (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Post-Effective Amendment No. 1 to the Registration Statement on Form S-8 filed on October 26, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3(i)(b)</TD>
    <TD>&nbsp;</TD>
    <TD>Certificate of Designation of Preferences, Rights and Limitations of Series A 9% Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on July 11, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3(i)(c)</TD>
    <TD>&nbsp;</TD>
    <TD>Certificate of Designation of Preferences, Rights and Limitations of Series B 9% Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Generex Biotechnology Corporation&rsquo;s Current Report on form 8-K filed on February 1, 2012).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3(ii)</TD>
    <TD>&nbsp;</TD>
    <TD>Amended and Restated By-Laws of Generex Biotechnology Corporation (incorporated by reference to Exhibit 3.2(ii) to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed December 5, 2007)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-1 (File No. 333-82667) filed on July 12, 1999)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.2.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement entered into with Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.2.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Registration Rights Agreement entered into with Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.2.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant granted to Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of replacement Warrant issued to warrant holders exercising at reduced exercise price in May and June 2003 (incorporated by reference to Exhibit 4.13.7 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K for the period ended July 31, 2003 filed on October 29, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.4.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated December 19, 2003, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K/A filed on March 24, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.4.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated December 19, 2003, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K/A filed on March 24, 2004)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.4.3</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Warrant issued in connection with Exhibit 4.4.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K/A filed on March 24, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.4.4</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Additional Investment Right issued in connection with Exhibit 4.4.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K/A filed on March 24, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated January 7, 2004, by and between Generex Biotechnology Corporation and ICN Capital Limited (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated January 7, 2004, by and between Generex Biotechnology Corporation and ICN Capital Limited (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5.3</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued in connection with Exhibit 4.5.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5.4</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.5.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated January 9, 2004, by and between Generex Biotechnology Corporation and Vertical Ventures, LLC (incorporated by reference to Exhibit 4.5 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated January 9, 2004, by and between Generex Biotechnology Corporation and Vertical Ventures, LLC (incorporated by reference to Exhibit 4.6 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6.3</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued in connection with Exhibit 4.6.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6.4</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.6.1 (incorporated by reference to Exhibit 4.8 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated February 6, 2004, by and between Generex Biotechnology Corporation and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.9 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated February 6, 2004, by and between Generex Biotechnology Corporation and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.10 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7.3</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued in connection with Exhibit 4.7.1 (incorporated by reference to Exhibit 4.11 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7.4</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.7.1 (incorporated by reference to Exhibit 4.12 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7.5</TD>
    <TD>&nbsp;</TD>
    <TD>Escrow Agreement, dated February 26, 2004, by and among Generex Biotechnology Corporation, Eckert Seamans Cherin &amp; Mellott, LLC and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.13 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.8.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated February 11, 2004, by and between Generex Biotechnology Corporation and Michael Sourlis (incorporated by reference to Exhibit 4.14 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.8.2</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Registration Rights Agreement, dated February 11, 2004, by and between Generex Biotechnology Corporation and Michael Sourlis (incorporated by reference to Exhibit 4.15 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.8.3</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.8.1 (incorporated by reference to Exhibit 4.17 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.9.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated February 13, 2004, by and between Generex Biotechnology Corporation and Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.18 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.9.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated February 13, 2004, by and between Generex Biotechnology Corporation and Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.19 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.9.3</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued in connection with Exhibit 4.9.1 (incorporated by reference to Exhibit 4.20 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.9.4</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.9.1 (incorporated by reference to Exhibit 4.21 Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated June 23, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on July 14, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.10.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated June 23, 2004, by and among Generex Biotechnology Corporation and the investors (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on July 14, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.10.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued in connection with Exhibit 4.10.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on July 14, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.10.4</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Additional Investment Right issued in connection Exhibit 4.10.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on July 14, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.11.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated November 10, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.11.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of 6% Secured Convertible Debenture issued in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.11.3</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated November 10, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.11.4</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Voting Agreement entered into in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.12</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued to The Aethena Group, LLC on April 28, 2005 (incorporated by reference to Exhibit 4.20 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.13.1</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment No. 4 to Securities Purchase Agreement and Registration Rights Agreement entered into by and between Generex Biotechnology Corporation and the Purchasers listed on the signature pages thereto on January 19, 2006 (incorporated by reference herein to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on January 20, 2006)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.13.2</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Additional AIRs issued in connection with Exhibit 4.13.1 (incorporated by reference herein to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on January 20, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.14</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on January 23, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on January 24, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.1</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Warrants between Generex Biotechnology Corporation and Cranshire Capital L.P. dated February 27, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 28, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.2</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Warrants between Generex Biotechnology Corporation and Omicron Master Trust dated February 27, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 28, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.3</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Warrants between Generex Biotechnology Corporation and Iroquois Capital L.P. dated February 27, 2006 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 28, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.4</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Warrants between Generex Biotechnology Corporation and Smithfield Fiduciary LLC dated February 27, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 28, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.5</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on February 27, 2006 (incorporated by reference to Exhibit 4.26 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.1</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Cranshire Capital, L.P. dated February 28, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.2</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Omicron Master Trust dated February 28, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.3</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Iroquois Capital LP dated February 28, 2006 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.4</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Smithfield Fiduciary LLC dated February 28, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.5</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Additional AIR Debenture issued by Generex Biotechnology Corporation on February 28, 2006 (incorporated by reference to Exhibit 4.31 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.6</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Additional AIR Warrant issued by Generex Biotechnology Corporation on February 28, 2006 (incorporated by reference to Exhibit 4.32 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.17.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Agreement to Amend Warrants between Generex Biotechnology Corporation and the Investors dated March 6, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 7, 2006)</TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.17.2</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Warrant issued by Generex Biotechnology Corporation on March 6, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 7, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.18</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.33 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q filed on June 14, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.19</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to certain employees (incorporated by reference to Exhibit 4.34 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q filed on June 14, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.20.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement entered into by and between Generex Biotechnology Corporation and four Investors on June 1, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 2, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.20.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on June 1, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 2, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.21.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Amendment to Outstanding Warrants (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 2, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.21.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on June 1, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 2, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated as of March 31, 2008 among the Registrant and each of the purchasers named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 2, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of 8% Secured Convertible Note, as amended (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Registration Statement (333-150562) on Form S-3 filed on April 30, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Series A Warrant, as amended (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.4</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Series A-1 Warrant, as amended (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.5</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Series B Warrant, as amended (incorporated by reference to Exhibit 4.5 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.6</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Series C Warrant, as amended (incorporated by reference to Exhibit 4.6 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.7</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated March 31, 2008, among Registrant and each of the purchasers under Securities Purchase Agreement (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 2, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.8</TD>
    <TD>&nbsp;</TD>
    <TD>Security Agreement (incorporated by reference to Exhibit 4.8 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 2, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.9</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Guaranty (incorporated by reference to Exhibit 4.9 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 2, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.23</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, date May 15, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 1.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on May 18, 2009)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.24.1</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Securities Purchase Agreement, dated June 15, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 16, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.24.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued in connection with Exhibit 4.24.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 16, 2009)&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.24.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Midtown Partners &amp; Co., LLC in connection with Exhibit 4.24.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 16, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.25.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated August 6, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 6, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.25.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued in connection with Exhibit 4.25.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 6, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.25.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Midtown Partners &amp; Co., LLC in connection with Exhibit 4.25.1 (incorporated by reference to Exhibit 4.28 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 6, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.26.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated September 11, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on September 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.26.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued in connection with Exhibit 4.26.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on September 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.26.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Midtown Partners &amp; Co., LLC and&nbsp; Maxim Group LLC in connection with Exhibit 4.26.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on September 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.27.1</TD>
    <TD>&nbsp;</TD>
    <TD>Common Stock Purchase Agreement dated April 7, 2010 by and between Generex Biotechnology Corporation and Seaside 88, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form&nbsp; 8-K filed on April 8, 2010)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.27.2</TD>
    <TD>&nbsp;</TD>
    <TD>First Amendment to Common Stock Purchase Agreement dated April 28, 2010 by and between Generex Biotechnology Corporation and Seaside 88, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form&nbsp; 8-K filed on April 29, 2010)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.27.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Midtown Partners &amp; Co., LLC in connection with Exhibit 4.27.1 hereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 8, 2010)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.28.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement dated January 24, 2011 by and between Generex Biotechnology Corporation and the investors (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on January 25, 2011).</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.28.2</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Warrant issued to the investors in connection with Exhibit 4.28.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on January 25, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.28.3</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment to Purchase Agreement dated March 25, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on March 30, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.28.4</TD>
    <TD>&nbsp;</TD>
    <TD>Second Amendment to Purchase Agreement dated April 13, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on April 14, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.29.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated July 8, 2011, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on July 11, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.29.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Warrant issued in connection with Exhibit 4.29.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on July 11, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.30.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated January 31, 2012, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on February 1, 2012).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.30.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Warrant issued in connection with Exhibit 4.30.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 1, 2012).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.30.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Registration Rights Agreement by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 1, 2012)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.31.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated August 8, 2012, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on August 8, 2012).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.31.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Warrant issued in connection with Exhibit 4.30.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 8, 2012).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.31.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Registration Rights Agreement by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 8, 2012)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>5.1</TD>
    <TD>&nbsp;</TD>
    <TD>Opinion of Eckert Seamans Cherin &amp; Mellott, LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>9</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Voting Agreement entered into in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Peter G. Amanatides to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.3 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.2</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and John P. Barratt to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">10.3</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Stock Option Agreement by and between Generex Biotechnology Corporation and Brian T. McGee to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and John P. Barratt to purchase 35,714 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.5</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Brian T. McGee to purchase 35,714 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.6</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Gerald Bernstein, M.D. to purchase 100,000 shares of Common Stock at the exercise price of $0.61 per share (incorporated by reference to Exhibit 10.8 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.7</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Mark Fletcher to purchase 250,000 shares of Common Stock at the exercise price of $0.61 per share (incorporated by reference to Exhibit 10.9 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.8</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Mark A. Fletcher to purchase 470,726 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.12 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.9</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement by and between Generex Biotechnology Corporation and Gerald Bernstein M.D. (incorporated by reference to Exhibit 10.16 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.10</TD>
    <TD>&nbsp;</TD>
    <TD>1998 Stock Option Plan (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-1 (File No. 333-82667) filed on July 12, 1999)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.11</TD>
    <TD>&nbsp;</TD>
    <TD>2000 Stock Option Plan (incorporated by reference to Exhibit 4.3.2 to Generex Biotechnology Corporation&rsquo;s Annual Report on Form 10-K filed on October 30, 2000)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.12</TD>
    <TD>&nbsp;</TD>
    <TD>Amended 2001 Stock Option Plan (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on December 15, 2003)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.13</TD>
    <TD>&nbsp;</TD>
    <TD>2006 Stock Plan (incorporated by reference to Annex A to Generex Biotechnology Corporation&rsquo;s Proxy Statement for the Annual Meeting of Stockholders held on May 30, 2006)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.14</TD>
    <TD>&nbsp;</TD>
    <TD>Stockholders Agreement among Generex Biotechnology Corporation and the former holders of capital stock of Antigen Express, Inc. (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation&rsquo;s Annual Report on Form 10-K filed on October 29, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.15</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to certain employees (incorporated by reference to Exhibit 4.34 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q filed on June 14, 2006)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.16</TD>
    <TD>&nbsp;</TD>
    <TD>Quotation for Contract Manufacturing of Oral-lyn&trade; entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on June 20, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.25 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on February 14, 2007)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">10.17</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Quotation Amendment for Contract Manufacturing of Oral-lyn&trade; entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on August 18, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.26 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.18</TD>
    <TD>&nbsp;</TD>
    <TD>Clinical Supply Agreement entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on September 6, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.27 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.19</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Restricted Stock Agreement for awards to executive officers of Generex Biotechnology Corporation under the Generex Biotechnology Corporation 2006 Stock Plan (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 23, 2007)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.20</TD>
    <TD>&nbsp;</TD>
    <TD>Summary of Employment Terms for Anna Gluskin effective as of January 1, 2006 (incorporated by reference to Exhibit 10.28 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on November 28, 2007)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.21</TD>
    <TD>&nbsp;</TD>
    <TD>Summary of Employment Terms for Rose Perri effective as of January 1, 2006 (incorporated by reference to Exhibit 10.29 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on November 28, 2007)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.22</TD>
    <TD>&nbsp;</TD>
    <TD>Summary of Employment Terms for Mark A. Fletcher effective as of April 21, 2003 (incorporated by reference to Exhibit 10.30 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on November 28, 2007)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.23</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement between Generex Biotechnology Corporation and Gerald Bernstein, M.D., effective as of April 1, 2002 (incorporated by reference to Exhibit 10.31 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on November 28, 2007)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.24</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Consent and Waiver Agreement entered into with Cranshire Capital, L.P., Portside Growth and Opportunity Fund and, Smithfield Fiduciary LLC (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 1, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.25</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Consent and Waiver Agreement entered into with Rockmore Investment Master Fund Ltd. (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 1, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.26</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Consent and Waiver Agreement entered into with the Iroquois Funds (incorporated by reference to Exhibit 10.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 1, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.27</TD>
    <TD>&nbsp;</TD>
    <TD>Form of separate Agreements entered into with each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC and Iroquois Capital Opportunity Fund, LP on December 22, 2008 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on December 23, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.28</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Agreement entered into with Iroquois Master Fund Ltd. on December 22, 2008 (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on December 23, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.29</TD>
    <TD>&nbsp;</TD>
    <TD>Form of separate Letter Agreements dated as of February 13, 2009 and entered into by and between Generex Biotechnology Corporation and each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC, Iroquois Master Fund Ltd. and Iroquois Capital Opportunity Fund, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 17, 2009)</TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">10.30</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Forbearance and Amendment Agreement dated as of February 27, 2009 and entered into by and between Generex Biotechnology Corporation and each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC, Iroquois Master Fund Ltd. and Iroquois Capital Opportunity Fund, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 2, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.31</TD>
    <TD>&nbsp;</TD>
    <TD>At Market Offering Issuance Agreement&nbsp; dated October 14, 2009 entered into between Generex Biotechnology Corporation and Wm Smith &amp; Co, LLC (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on October 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.32</TD>
    <TD>&nbsp;</TD>
    <TD>Recombinant Human Insulin Active Ingredient Manufacturing and Supply Agreement entered into on December 7, 2009 by and&nbsp; between Generex Biotechnology Corporation and Sanofi-Aventis Deutschland GmbH (subject to confidential treatment) (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on December 11, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.33</TD>
    <TD>&nbsp;</TD>
    <TD>Summary of Compensation Arrangements with Executive Officers and Directors as of March 25, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.34</TD>
    <TD>&nbsp;</TD>
    <TD>Incentive Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 11, 2010)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.35</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Brian McGee (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 11, 2010)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.36</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 11, 2010)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.37</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Nola Masterson (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 11, 2010).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.38</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment to the Employment Terms for Mark A. Fletcher, dated September 29, 2010 (incorporated by reference to Exhibit 10.46 to Generex Biotechnology Corporation&rsquo;s Annual Report on Form 10-K filed on October 14, 2010).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.39</TD>
    <TD>&nbsp;</TD>
    <TD>Limited Liability Company Ownership Interest Purchase Agreement by and among Generex Biotechnology Corporation, Global Medical Direct, LLC and Joseph Corso, Jr., Robert S. Shea and Mark Franz (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on October 12, 2010)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.40</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.41</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.42</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">10.43</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 91%">Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and David Brusegard (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.44</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Stephen Fellows (incorporated by reference to Exhibit 10.8 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.45</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.9 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.46</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Nola E. Masterson (incorporated by reference to Exhibit 10.10 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.47</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Brian T. McGee (incorporated by reference to Exhibit 10.11 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.48</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Mark A. Fletcher.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.49</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and John P. Barratt.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.50</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Brian T. McGee.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.51</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Nola E. Masterson.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.52</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and James Anderson.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.53</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Eric von Hofe.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.54</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 20, 2012 by and between Generex Biotechnology Corporation and Stephen Fellows.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.55</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 20, 2012 by and between Generex Biotechnology Corporation and David Brusegard.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>21</TD>
    <TD>&nbsp;</TD>
    <TD>Subsidiaries of the Registrant (incorporated by reference to Exhibit 21 to Generex Biotechnology Corporation&rsquo;s Annual Report on Form 10-K filed on October 14, 2011)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.1</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of Eckert Seamans Cherin &amp; Mellott, LLC (included in Exhibit 5.1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.2</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of MSCM LLP, independent registered public accounting firm</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>24&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Power of Attorney (included on signature page hereto)&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3">* Management contract or management compensatory plan or arrangement.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 3%; vertical-align: top">(1)</TD>
    <TD STYLE="width: 95%; vertical-align: top">In the case of incorporation by reference to documents filed by the Registrant under the Exchange Act, the Registrant&rsquo;s file number under the Exchange Act is 000-25169.</TD>
    <TD STYLE="width: 2%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 17. Undertakings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;The undersigned
registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining liability under the Securities Act of 1933 to any purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the registrant is relying on Rule 430B:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration statement; and&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on
Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information
required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale
of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any
person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement
relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by
reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with
a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement
or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
of the securities, in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless
of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser
by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered
to offer or sell such securities to such purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule
424;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to
by the undersigned registrant;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than a payment by the registrant of expenses incurred or paid
by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will,
unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Pursuant to the requirements of the Securities
Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-1 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the city of Toronto, Province of Ontario, Canada, on September 12, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">GENEREX BIOTECHNOLOGY CORPORATION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%">&nbsp;</TD>
    <TD STYLE="width: 5%">By:</TD>
    <TD STYLE="width: 44%; border-bottom: Black 1pt solid">/s/ Mark A. Fletcher</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;Mark A. Fletcher</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;President and Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">KNOW ALL PERSONS BY THESE PRESENTS, that
each person whose signature appears below hereby constitutes and appoints Mark Fletcher, and each of them, his or her true and
lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name,
place and stead, in any and all capacities including his or her capacity as a director and/or officer of Generex Biotechnology
Corporation to sign any and all amendments (including post-effective amendments) to this registration statement, and to file the
same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting
unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could
do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or his or her
substitute or substitutes, may lawfully do or cause to be done by virtue thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Pursuant to the requirements of the Securities
Act of 1933, as amended, this Registration Statement was signed by the following persons in the capacities and on the dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="width: 27%; vertical-align: bottom; font-weight: bold; border-bottom: Black 1pt solid">Signature</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 51%; vertical-align: top; padding-left: 4.8pt; font-weight: bold; border-bottom: Black 1pt solid">Title</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 19%; vertical-align: top; font-weight: bold; text-indent: 2.4pt; border-bottom: Black 1pt solid">Date</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 4.8pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 2.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid">/s/ Mark A. Fletcher</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 4.8pt">President and Chief Executive Officer and General</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 2.4pt">September 12, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">Mark A. Fletcher</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 4.8pt">Counsel (Principal Executive Officer)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Stephen Fellows</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.8pt">Acting Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 2.4pt">September 12, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Stephen Fellows</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.8pt">(Principal Financial and Accounting Officer)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Brian T. McGee</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 4.8pt">Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 2.4pt">September 12, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Brian T. McGee</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ John P. Barratt</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 4.8pt">Chairman of the Board of Directors</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 2.4pt">September 12, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">John P. Barratt</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Nola E. Masterson&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 4.8pt">Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 2.4pt">September 12, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Nola E. Masterson</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ James Anderson</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 4.8pt">Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 2.4pt">September 12, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">James Anderson</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Eric von Hofe</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 4.8pt">Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 2.4pt">September 12, 2012</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Eric von Hofe</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibits are filed as part of, or incorporated
by reference into this registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="width: 8%; vertical-align: bottom; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Number</B></P></TD>
    <TD STYLE="width: 1%; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 91%; vertical-align: bottom; border-bottom: black 1pt solid; font-weight: bold"><B>Description of Exhibit<SUP>(1)</SUP></B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="color: red; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>1.1</TD>
    <TD>&nbsp;</TD>
    <TD>Placement Agency Agreement, dated May 5, 2009, by and between Generex Biotechnology Corporation and Rodman &amp; Renshaw (incorporated by reference to Exhibit 1.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on May 18, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>1.2</TD>
    <TD>&nbsp;</TD>
    <TD>Placement Agency Agreement, dated June 8, 2009, by and between Generex Biotechnology Corporation and Midtown Partners &amp; Co., LLC and amendments dated August 5, August 18, and September 11, 2009 (incorporated by reference to Exhibit 1.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on September 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>1.3</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment dated as of April 7, 2010 to Placement Agent Agreement attached as Exhibit 1.2 hereto (incorporated by reference .reference to Exhibit 1.2 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on April 8, 2010)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>1.4</TD>
    <TD>&nbsp;</TD>
    <TD>Placement Agency Agreement dated September 11, 2009, by and between Generex Biotechnology Corporation and Maxim Group LLC. (incorporated by reference to Exhibit 1.2 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on September 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>2</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement and Plan of Merger among Generex Biotechnology Corporation, Antigen Express, Inc. and AGEXP Acquisition Inc. (incorporated by reference to Exhibit 2.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on August 15, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3(i)(a)</TD>
    <TD>&nbsp;</TD>
    <TD>Restated Certificate of Incorporation of Generex Biotechnology Corporation (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Post-Effective Amendment No. 1 to the Registration Statement on Form S-8 filed on October 26, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3(i)(b)</TD>
    <TD>&nbsp;</TD>
    <TD>Certificate of Designation of Preferences, Rights and Limitations of Series A 9% Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on July 11, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3(i)(c)</TD>
    <TD>&nbsp;</TD>
    <TD>Certificate of Designation of Preferences, Rights and Limitations of Series B 9% Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Generex Biotechnology Corporation&rsquo;s Current Report on form 8-K filed on February 1, 2012).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3(ii)</TD>
    <TD>&nbsp;</TD>
    <TD>Amended and Restated By-Laws of Generex Biotechnology Corporation (incorporated by reference to Exhibit 3.2(ii) to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed December 5, 2007)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-1 (File No. 333-82667) filed on July 12, 1999)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.2.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement entered into with Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.2.2</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Registration Rights Agreement entered into with Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.2.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant granted to Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of replacement Warrant issued to warrant holders exercising at reduced exercise price in May and June 2003 (incorporated by reference to Exhibit 4.13.7 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K for the period ended July 31, 2003 filed on October 29, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.4.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated December 19, 2003, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K/A filed on March 24, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.4.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated December 19, 2003, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K/A filed on March 24, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.4.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued in connection with Exhibit 4.4.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K/A filed on March 24, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.4.4</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Additional Investment Right issued in connection with Exhibit 4.4.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K/A filed on March 24, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated January 7, 2004, by and between Generex Biotechnology Corporation and ICN Capital Limited (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated January 7, 2004, by and between Generex Biotechnology Corporation and ICN Capital Limited (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5.3</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued in connection with Exhibit 4.5.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5.4</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.5.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated January 9, 2004, by and between Generex Biotechnology Corporation and Vertical Ventures, LLC (incorporated by reference to Exhibit 4.5 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated January 9, 2004, by and between Generex Biotechnology Corporation and Vertical Ventures, LLC (incorporated by reference to Exhibit 4.6 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6.3</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued in connection with Exhibit 4.6.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6.4</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.6.1 (incorporated by reference to Exhibit 4.8 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.7.1</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Securities Purchase Agreement, dated February 6, 2004, by and between Generex Biotechnology Corporation and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.9 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated February 6, 2004, by and between Generex Biotechnology Corporation and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.10 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7.3</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued in connection with Exhibit 4.7.1 (incorporated by reference to Exhibit 4.11 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7.4</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.7.1 (incorporated by reference to Exhibit 4.12 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7.5</TD>
    <TD>&nbsp;</TD>
    <TD>Escrow Agreement, dated February 26, 2004, by and among Generex Biotechnology Corporation, Eckert Seamans Cherin &amp; Mellott, LLC and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.13 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.8.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated February 11, 2004, by and between Generex Biotechnology Corporation and Michael Sourlis (incorporated by reference to Exhibit 4.14 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.8.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated February 11, 2004, by and between Generex Biotechnology Corporation and Michael Sourlis (incorporated by reference to Exhibit 4.15 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.8.3</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.8.1 (incorporated by reference to Exhibit 4.17 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.9.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated February 13, 2004, by and between Generex Biotechnology Corporation and Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.18 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.9.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated February 13, 2004, by and between Generex Biotechnology Corporation and Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.19 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.9.3</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued in connection with Exhibit 4.9.1 (incorporated by reference to Exhibit 4.20 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.9.4</TD>
    <TD>&nbsp;</TD>
    <TD>Additional Investment Right issued in connection with Exhibit 4.9.1 (incorporated by reference to Exhibit 4.21 Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated June 23, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on July 14, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.10.2</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated June 23, 2004, by and among Generex Biotechnology Corporation and the investors (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on July 14, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.10.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued in connection with Exhibit 4.10.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on July 14, 2004)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.10.4</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Additional Investment Right issued in connection Exhibit 4.10.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on July 14, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.11.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated November 10, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.11.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of 6% Secured Convertible Debenture issued in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.11.3</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated November 10, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.11.4</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Voting Agreement entered into in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.12</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued to The Aethena Group, LLC on April 28, 2005 (incorporated by reference to Exhibit 4.20 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.13.1</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment No. 4 to Securities Purchase Agreement and Registration Rights Agreement entered into by and between Generex Biotechnology Corporation and the Purchasers listed on the signature pages thereto on January 19, 2006 (incorporated by reference herein to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on January 20, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.13.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Additional AIRs issued in connection with Exhibit 4.13.1 (incorporated by reference herein to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on January 20, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.14</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on January 23, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on January 24, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.1</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Warrants between Generex Biotechnology Corporation and Cranshire Capital L.P. dated February 27, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 28, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.2</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Warrants between Generex Biotechnology Corporation and Omicron Master Trust dated February 27, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 28, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.3</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Warrants between Generex Biotechnology Corporation and Iroquois Capital L.P. dated February 27, 2006 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 28, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.4</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Warrants between Generex Biotechnology Corporation and Smithfield Fiduciary LLC dated February 27, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 28, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.15.5</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on February 27, 2006 (incorporated by reference to Exhibit 4.26 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.1</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Cranshire Capital, L.P. dated February 28, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2006)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.16.2</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Omicron Master Trust dated February 28, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.3</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Iroquois Capital LP dated February 28, 2006 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.4</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Smithfield Fiduciary LLC dated February 28, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 1, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.5</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Additional AIR Debenture issued by Generex Biotechnology Corporation on February 28, 2006 (incorporated by reference to Exhibit 4.31 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.16.6</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Additional AIR Warrant issued by Generex Biotechnology Corporation on February 28, 2006 (incorporated by reference to Exhibit 4.32 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.17.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Agreement to Amend Warrants between Generex Biotechnology Corporation and the Investors dated March 6, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 7, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.17.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on March 6, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 7, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.18</TD>
    <TD>&nbsp;</TD>
    <TD>Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.33 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q filed on June 14, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.19</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to certain employees (incorporated by reference to Exhibit 4.34 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q filed on June 14, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.20.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement entered into by and between Generex Biotechnology Corporation and four Investors on June 1, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 2, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.20.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on June 1, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 2, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.21.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Amendment to Outstanding Warrants (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 2, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.21.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on June 1, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 2, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.1</TD>
    <TD>&nbsp;</TD>
    <TD>Securities Purchase Agreement, dated as of March 31, 2008 among the Registrant and each of the purchasers named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 2, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of 8% Secured Convertible Note, as amended (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Registration Statement (333-150562) on Form S-3 filed on April 30, 2008)</TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.22.3</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Series A Warrant, as amended (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.4</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Series A-1 Warrant, as amended (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.5</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Series B Warrant, as amended (incorporated by reference to Exhibit 4.5 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.6</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Series C Warrant, as amended (incorporated by reference to Exhibit 4.6 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.7</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated March 31, 2008, among Registrant and each of the purchasers under Securities Purchase Agreement (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 2, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.8</TD>
    <TD>&nbsp;</TD>
    <TD>Security Agreement (incorporated by reference to Exhibit 4.8 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 2, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.22.9</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Guaranty (incorporated by reference to Exhibit 4.9 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 2, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.23</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, date May 15, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 1.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on May 18, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.24.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated June 15, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 16, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.24.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued in connection with Exhibit 4.24.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 16, 2009)&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.24.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Midtown Partners &amp; Co., LLC in connection with Exhibit 4.24.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on June 16, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.25.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated August 6, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 6, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.25.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued in connection with Exhibit 4.25.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 6, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.25.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Midtown Partners &amp; Co., LLC in connection with Exhibit 4.25.1 (incorporated by reference to Exhibit 4.28 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 6, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.26.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated September 11, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on September 15, 2009)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.26.2</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Warrant issued in connection with Exhibit 4.26.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on September 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.26.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Midtown Partners &amp; Co., LLC and&nbsp; Maxim Group LLC in connection with Exhibit 4.26.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on September 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.27.1</TD>
    <TD>&nbsp;</TD>
    <TD>Common Stock Purchase Agreement dated April 7, 2010 by and between Generex Biotechnology Corporation and Seaside 88, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form&nbsp; 8-K filed on April 8, 2010)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.27.2</TD>
    <TD>&nbsp;</TD>
    <TD>First Amendment to Common Stock Purchase Agreement dated April 28, 2010 by and between Generex Biotechnology Corporation and Seaside 88, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form&nbsp; 8-K filed on April 29, 2010)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.27.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to Midtown Partners &amp; Co., LLC in connection with Exhibit 4.27.1 hereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on April 8, 2010)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.28.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement dated January 24, 2011 by and between Generex Biotechnology Corporation and the investors (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on January 25, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.28.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued to the investors in connection with Exhibit 4.28.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on January 25, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.28.3</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment to Purchase Agreement dated March 25, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on March 30, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.28.4</TD>
    <TD>&nbsp;</TD>
    <TD>Second Amendment to Purchase Agreement dated April 13, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on April 14, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.29.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated July 8, 2011, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on July 11, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.29.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Warrant issued in connection with Exhibit 4.29.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on July 11, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.30.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated January 31, 2012, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on February 1, 2012).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.30.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Common Stock Warrant issued in connection with Exhibit 4.30.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 1, 2012).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.30.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Registration Rights Agreement by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 1, 2012)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.31.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Securities Purchase Agreement, dated August 8, 2012, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on August 8, 2012).</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">4.31.2</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Common Stock Warrant issued in connection with Exhibit 4.30.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 8, 2012).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.31.3</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Registration Rights Agreement by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 8, 2012)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>5.1</TD>
    <TD>&nbsp;</TD>
    <TD>Opinion of Eckert Seamans Cherin &amp; Mellott, LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>9</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Voting Agreement entered into in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation&rsquo;s Current Report on Form 8-K filed on November 12, 2004)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Peter G. Amanatides to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.3 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.2</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and John P. Barratt to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.3</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Brian T. McGee to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and John P. Barratt to purchase 35,714 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.5</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Brian T. McGee to purchase 35,714 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.6</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Gerald Bernstein, M.D. to purchase 100,000 shares of Common Stock at the exercise price of $0.61 per share (incorporated by reference to Exhibit 10.8 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.7</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Mark Fletcher to purchase 250,000 shares of Common Stock at the exercise price of $0.61 per share (incorporated by reference to Exhibit 10.9 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.8</TD>
    <TD>&nbsp;</TD>
    <TD>Stock Option Agreement by and between Generex Biotechnology Corporation and Mark A. Fletcher to purchase 470,726 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.12 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">10.9</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Employment Agreement by and between Generex Biotechnology Corporation and Gerald Bernstein M.D. (incorporated by reference to Exhibit 10.16 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 14, 2005)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.10</TD>
    <TD>&nbsp;</TD>
    <TD>1998 Stock Option Plan (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation&rsquo;s Registration Statement on Form S-1 (File No. 333-82667) filed on July 12, 1999)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.11</TD>
    <TD>&nbsp;</TD>
    <TD>2000 Stock Option Plan (incorporated by reference to Exhibit 4.3.2 to Generex Biotechnology Corporation&rsquo;s Annual Report on Form 10-K filed on October 30, 2000)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.12</TD>
    <TD>&nbsp;</TD>
    <TD>Amended 2001 Stock Option Plan (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on December 15, 2003)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.13</TD>
    <TD>&nbsp;</TD>
    <TD>2006 Stock Plan (incorporated by reference to Annex A to Generex Biotechnology Corporation&rsquo;s Proxy Statement for the Annual Meeting of Stockholders held on May 30, 2006)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.14</TD>
    <TD>&nbsp;</TD>
    <TD>Stockholders Agreement among Generex Biotechnology Corporation and the former holders of capital stock of Antigen Express, Inc. (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation&rsquo;s Annual Report on Form 10-K filed on October 29, 2003)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.15</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to certain employees (incorporated by reference to Exhibit 4.34 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-Q filed on June 14, 2006)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.16</TD>
    <TD>&nbsp;</TD>
    <TD>Quotation for Contract Manufacturing of Oral-lyn&trade; entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on June 20, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.25 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on February 14, 2007)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.17</TD>
    <TD>&nbsp;</TD>
    <TD>Quotation Amendment for Contract Manufacturing of Oral-lyn&trade; entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on August 18, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.26 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.18</TD>
    <TD>&nbsp;</TD>
    <TD>Clinical Supply Agreement entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on September 6, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.27 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K filed on October 16, 2006)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.19</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Restricted Stock Agreement for awards to executive officers of Generex Biotechnology Corporation under the Generex Biotechnology Corporation 2006 Stock Plan (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 23, 2007)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.20</TD>
    <TD>&nbsp;</TD>
    <TD>Summary of Employment Terms for Anna Gluskin effective as of January 1, 2006 (incorporated by reference to Exhibit 10.28 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on November 28, 2007)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.21</TD>
    <TD>&nbsp;</TD>
    <TD>Summary of Employment Terms for Rose Perri effective as of January 1, 2006 (incorporated by reference to Exhibit 10.29 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on November 28, 2007)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.22</TD>
    <TD>&nbsp;</TD>
    <TD>Summary of Employment Terms for Mark A. Fletcher effective as of April 21, 2003 (incorporated by reference to Exhibit 10.30 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on November 28, 2007)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.23</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement between Generex Biotechnology Corporation and Gerald Bernstein, M.D., effective as of April 1, 2002 (incorporated by reference to Exhibit 10.31 to Generex Biotechnology Corporation&rsquo;s Report on Form 10-K/A filed on November 28, 2007)*</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">10.24</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Form of Consent and Waiver Agreement entered into with Cranshire Capital, L.P., Portside Growth and Opportunity Fund and, Smithfield Fiduciary LLC (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 1, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.25</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Consent and Waiver Agreement entered into with Rockmore Investment Master Fund Ltd. (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 1, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.26</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Consent and Waiver Agreement entered into with the Iroquois Funds (incorporated by reference to Exhibit 10.3 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on August 1, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.27</TD>
    <TD>&nbsp;</TD>
    <TD>Form of separate Agreements entered into with each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC and Iroquois Capital Opportunity Fund, LP on December 22, 2008 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on December 23, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.28</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Agreement entered into with Iroquois Master Fund Ltd. on December 22, 2008 (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on December 23, 2008)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.29</TD>
    <TD>&nbsp;</TD>
    <TD>Form of separate Letter Agreements dated as of February 13, 2009 and entered into by and between Generex Biotechnology Corporation and each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC, Iroquois Master Fund Ltd. and Iroquois Capital Opportunity Fund, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on February 17, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.30</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Forbearance and Amendment Agreement dated as of February 27, 2009 and entered into by and between Generex Biotechnology Corporation and each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC, Iroquois Master Fund Ltd. and Iroquois Capital Opportunity Fund, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on March 2, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.31</TD>
    <TD>&nbsp;</TD>
    <TD>At Market Offering Issuance Agreement&nbsp; dated October 14, 2009 entered into between Generex Biotechnology Corporation and Wm Smith &amp; Co, LLC (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on October 15, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.32</TD>
    <TD>&nbsp;</TD>
    <TD>Recombinant Human Insulin Active Ingredient Manufacturing and Supply Agreement entered into on December 7, 2009 by and&nbsp; between Generex Biotechnology Corporation and Sanofi-Aventis Deutschland GmbH (subject to confidential treatment) (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on December 11, 2009)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.33</TD>
    <TD>&nbsp;</TD>
    <TD>Summary of Compensation Arrangements with Executive Officers and Directors as of March 25, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.34</TD>
    <TD>&nbsp;</TD>
    <TD>Incentive Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 11, 2010)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.35</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Brian McGee (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 11, 2010)*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.36</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 11, 2010)*</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">10.37</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Nola Masterson (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 11, 2010).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.38</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment to the Employment Terms for Mark A. Fletcher, dated September 29, 2010 (incorporated by reference to Exhibit 10.46 to Generex Biotechnology Corporation&rsquo;s Annual Report on Form 10-K filed on October 14, 2010).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.39</TD>
    <TD>&nbsp;</TD>
    <TD>Limited Liability Company Ownership Interest Purchase Agreement by and among Generex Biotechnology Corporation, Global Medical Direct, LLC and Joseph Corso, Jr., Robert S. Shea and Mark Franz (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation&rsquo;s Report on Form 8-K filed on October 12, 2010)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.40</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.41</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.42</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.43</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and David Brusegard (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.44</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Stephen Fellows (incorporated by reference to Exhibit 10.8 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.45</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.9 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.46</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Nola E. Masterson (incorporated by reference to Exhibit 10.10 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.47</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Brian T. McGee (incorporated by reference to Exhibit 10.11 to Generex Biotechnology Corporation&rsquo;s Quarterly Report on Form 10-Q filed on June 3, 2011).*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.48</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Mark A. Fletcher.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.49</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and John P. Barratt.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.50</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Brian T. McGee.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.51</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Nola E. Masterson.</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<!-- Field: Page; Sequence: 182; Value: 2 -->
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">10.52</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 91%">Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and James Anderson.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.53</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Eric von Hofe.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.54</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 20, 2012 by and between Generex Biotechnology Corporation and Stephen Fellows.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.55</TD>
    <TD>&nbsp;</TD>
    <TD>Nonqualified Stock Option Grant Agreement dated June 20, 2012 by and between Generex Biotechnology Corporation and David Brusegard.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>21</TD>
    <TD>&nbsp;</TD>
    <TD>Subsidiaries of the Registrant (incorporated by reference to Exhibit 21 to Generex Biotechnology Corporation&rsquo;s Annual Report on Form 10-K filed on October 14, 2011)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.1</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of Eckert Seamans Cherin &amp; Mellott, LLC (included in Exhibit 5.1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.2</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of MSCM LLP, independent registered public accounting firm</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>24</TD>
    <TD>&nbsp;</TD>
    <TD>Power of Attorney (included on signature page hereto)</TD></TR>
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    <TD COLSPAN="3">* Management contract or management compensatory plan or arrangement.</TD></TR>
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    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 3%; vertical-align: top">(1)</TD>
    <TD STYLE="width: 95%; vertical-align: top">In the case of incorporation by reference to documents filed by the Registrant under the Exchange Act, the Registrant&rsquo;s file number under the Exchange Act is 000-25169.</TD>
    <TD STYLE="width: 2%">&nbsp;</TD></TR>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
GENEREX BIOTECHNOLOGY CORPORATION
(Exact name of registrant as specified
in its charter)
Delaware
2834
98-0178683
(State or other jurisdiction of
incorporation or
organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer Identification Number)
555 Richmond Street West, Suite 604
Toronto, Ontario
Canada M5V 3B1
(416) 364-2551
(Address, including zip code, and telephone
number, including
area code, of registrant's principal
executive offices)
Mark Fletcher, Esquire
Chief Executive Officer & President
555 Richmond Street West, Suite 604
Toronto, Ontario
Canada M5V 3B1
(416) 364-2551
(Name, address, including zip code, and
telephone number,
including area code, of agent for service)
Copies to:
Gary A. Miller
Eckert Seamans Cherin & Mellott,
LLC
Two Liberty Place
50 South 16th Street, 22nd Floor
Philadelphia, Pennsylvania 19102
(215) 851-8400
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE
PUBLIC
: From time to time after the effective date of this registration statement, as determined by the Selling Stockholder.
If any of the securities being registered on this Form are to
be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box.
x
If this Form is filed to register additional securities for
an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.
¨
.
If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.
¨
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large
accelerated filer", "accelerated filer", and "smaller reporting company" in Rule 12b-2 of the Exchange
Act (Check one):
Large accelerated filer
¨
Accelerated filer
x
Non-accelerated filer
¨
Smaller reporting company
¨
Calculation of Registration Fee
Title of each Class of Security Being
Registered
Amount
Being
Registered (1) (2)(3)
Proposed
Maximum
Offering
Price Per
Security (4)
Proposed
Maximum
Aggregate
Offering
Price(4)
Amount of
Registration
Fee
Common Stock, $0.001 par value
88,121,621
$
.0705
$
6,212,754
$
712
(1)      All
of the shares of common stock registered hereunder are held by, or issuable upon conversion or exercise of securities held by,
the Selling Stockholders. Accordingly, this registration statement includes an indeterminate number of additional shares of common
stock issuable for no additional consideration pursuant to any stock dividend, stock split, recapitalization, or other similar
transaction effected without the receipt of consideration, which results in an increase in the number of outstanding shares of
our common stock. In the event of a stock split, stock dividend or similar transaction involving our common stock, in order to
prevent dilution, the number of shares registered shall be automatically increased to cover the additional shares in accordance
with Rule 416(a) under the Securities Act of 1933.
(2) Includes 1.20 times the number of shares
issuable upon exercise of certain warrants issued by the August 10, 2012 and preferred stock issued by the registrant on August
10, 2012, which include a price protection feature. The registrant is registering an additional 3,750,000 shares of common stock,
which is a good faith estimate of the maximum number of shares of common stock issuable upon exercise or conversion of such warrants
and preferred stock if the price protection feature is triggered. The price protection feature provides for a reduction in the
exercise price and an increase in the number of shares of common stock issuable under the existing warrants upon the occurrence
of certain events, including the Company's issuance of common stock or securities convertible into or exercisable for common
stock, such as options and warrants, at a price per share less than the exercise price then in effect.
(3)       Includes an estimated 4,050,000 shares
of common stock which may be issued as payment for dividends payable on the Series C 9% Convertible Preferred Stock through August
10, 2015 and "make-whole payments" upon conversion of the Series C 9% Convertible Preferred Stock prior to August 10,
2015 in an amount equal to $270 per $1,000 of stated value of the Series C 9% Convertible Preferred Stock, less the amount of all
prior quarterly dividends paid thereon before the relevant conversion date.
(4)      Estimated
solely for purposes of determining the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, using the average
of the bid and asked prices for our common stock as reported on the OTC Bulletin Board on September 6, 2012, which was $0.0705
per share.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION
STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT
WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT
TO SAID SECTION 8(a), MAY DETERMINE.
PROSPECTUS
GENEREX BIOTECHNOLOGY CORPORATION
Resale of 88,121,621 Shares of Common
Stock
This prospectus relates to the resale of
our common stock by certain of our stockholders, or Selling Security Holders.  The shares offered for resale by this prospectus
include the following:
•             22,800,000
shares of common stock issuable (i) upon conversion of the Series C 9% Convertible Preferred Stock sold in our August 10, 2012
offering, (ii) upon exercise of the warrants sold in our August 10, 2012 offering which may be exercised at a price of $0.08 per
share, and (iii) in lieu of the cash payment of dividends on the preferred stock sold in our August 10, 2012 offering payable through
August 10, 2015.
•             3,750,000
shares of common stock pertaining to (i) additional shares of common stock that may be issuable upon the triggering of ratchet
provisions of 9,375,000 warrants that were issued in our August 10, 2012 offerings and (ii) additional shares of common stock that
may be issuable upon the triggering of ratchet provisions of the Series C 9% Convertible Preferred Stock.
And shares of additional common stock issuable
upon exercise of certain previously issued warrants due to the triggering of ratchet provisions in connection with our August 10,
2012 offering of Series C 9% Convertible Preferred Stock including:
•              30,171,626
shares of common stock issuable upon exercise of certain warrants sold in our March 31, 2008 offering which may be exercised
at a price of $0.08 per share due to the triggering of ratchet provisions;
•             3,499,999
shares of common stock issuable upon exercise of the warrants sold in our January 25, 2011 offering which may be exercised at a
price of $0.08 per share due to the triggering of ratchet provisions;
•             2,916,644
shares of common stock issuable upon exercise of the warrants sold in our July 7, 2011 offering which may be exercised at a price
of $0.08 per share due to the triggering of ratchet provisions;
•             23,333,332
shares of common stock issuable (i) upon conversion of the Series B 9% Convertible Preferred Stock sold in our February 1, 2012
offering, and (ii) upon exercise of the warrants sold in our February 1, 2012 offering which may be exercised at a price of $0.08
per share due to the triggering of ratchet provisions;.
This Prospectus also relates to:
•             an
aggregate of 1,650,000 shares of common stock issued to placement agents and consultants.
This prospectus may only be used where it
is legal to offer and sell the shares covered by this prospectus. We have not taken any action to register or obtain permission
for this offering or the distribution of this prospectus in any country other than the United States.
Although we will pay substantially all the
expenses incident to the registration of the shares, we will not receive any proceeds from the sales by the Selling Security Holders.
We will, however, to the extent the warrants are exercised for cash, receive proceeds from such exercises; to the extent we receive
such proceeds, they will be used for general corporate and working capital purposes.
The Selling Security Holders may sell these
securities from time to time at the prevailing market price or in negotiated transactions or in any other manner specified under
"Plan of Distribution" in this prospectus.
Our common stock is presently quoted for
trading on the OTC Bulletin Board under the symbol "GNBT.OB". On September 6, 2012, the last sales price of the common
stock was $0.0705 per share.
Investing in our common stock is highly
speculative and involves a high degree of risk. You should purchase these securities only if you can afford a complete loss of
your investment.  You should carefully consider the risks and uncertainties described under the heading "Risk Factors"
beginning on page 5 of this prospectus before making a decision to purchase our common stock.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed
upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is      
, 2012
TABLE OF CONTENTS
PROSPECTUS SUMMARY
4
THE OFFERING
6
RISK FACTORS
8
FORWARD-LOOKING STATEMENTS
15
USE OF PROCEEDS
16
SELLING SECURITY HOLDERS
16
MARKET PRICE OF OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS
21
BUSINESS AND PROPERTY
23
SELECTED FINANCIAL DATA
43
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
43
MANAGEMENT
64
EXECUTIVE COMPENSATION
69
CERTAIN TRANSACTIONS
82
Security Ownership
    of Certain Beneficial Owners and Management
83
DESCRIPTION OF SECURITIES TO BE REGISTERED
85
PLAN OF DISTRIBUTION
91
LEGAL MATTERS
93
EXPERTS
93
WHERE YOU CAN FIND MORE INFORMATION
93
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
F-1
PART II
II-1
3
PROSPECTUS SUMMARY
This summary highlights information set forth in greater
detail elsewhere in this prospectus. It may not contain all the information that may be important to you. You should read this
entire prospectus carefully, including the sections entitled "Risk Factors" beginning on page 8, the financial statements
and the notes to the financial statements. Unless the context requires otherwise, references to the "Company," "Generex,"
"we," "our," and "us," refer to Generex Biotechnology Corporation and its subsidiaries
.
Our Company
We are engaged primarily in the research and development of
drug delivery systems and technologies. Our primary focus at the present time is our proprietary technology for the administration
of formulations of large molecule drugs to the oral (buccal) cavity using a hand-held aerosol applicator. Through our wholly-owned
subsidiary, Antigen Express, Inc. ("Antigen"), we have expanded our focus to include immunomedicines incorporating
proprietary vaccine formulations.
We believe that our buccal delivery technology is a platform
technology that has application to many large molecule drugs and provides a convenient, non-invasive, accurate and cost-effective
way to administer such drugs. We have identified several large molecule drugs as possible candidates for development, including
estrogen, heparin, monoclonal antibodies, human growth hormone and fertility hormones, but to date have focused our development
efforts primarily on one pharmaceutical product, Generex Oral-lyn™, an insulin formulation administered as a fine spray into
the oral cavity using our proprietary hand-held aerosol spray applicator known as RapidMist™.
Our wholly-owned subsidiary, Antigen, concentrates on developing
proprietary vaccine formulations that work by stimulating the immune system to either attack offending agents (i.e., cancer cells,
bacteria, and viruses) or to stop attacking benign elements (i.e., self proteins and allergens). Our immunomedicine products are
based on two platform technologies and are in the early stages of development. We continue clinical development of Antigen's
synthetic peptide vaccines designed to stimulate a potent and specific immune response against tumors expressing the HER-2/neu
oncogene for patients with HER-2/neu positive breast cancer in a Phase II clinical trial and patients with prostate cancer and
against avian influenza in two Phase I clinical trials. We recently initiated an additional Phase I clinical trial in patients
with either breast or ovarian cancer. The synthetic vaccine technology has certain advantages for pandemic or potentially pandemic
viruses, such as the H5N1 avian and H1N1 swine flu. In addition to developing vaccines for pandemic influenza viruses, we have
vaccine development efforts underway for seasonal influenza virus, HIV, HPV, melanoma, ovarian cancer, allergy and Type I diabetes
mellitus. We have established collaborations with clinical investigators at academic centers to advance these technologies.
To date, we have received regulatory
approval in Ecuador, India (subject to further study), Lebanon and Algeria for the commercial marketing and sale of Generex Oral-lyn™.
We have previously submitted regulatory dossiers for Generex Oral-lyn™ in a number of other countries, including Bangladesh,
Kenya, Jordan and Armenia. While we believe these countries will ultimately approve our product for commercial sale, we do not
anticipate recognizing revenues in any of these jurisdictions in the next twelve months. No dossier related activities or product
shipments have taken place to these countries during 2011, nor are any expected during the remainder of 2012.
In March 2008, we initiated Phase
III clinical trials for this product in the U.S. with the first patient screening for such trials at a clinical study site in Texas
in April 2008. Approximately 450 patients have been enrolled to date at approximately 70 clinical sites around the world, including
sites in the United States, Canada, Bulgaria, Poland, Romania, Russia, Ukraine and Ecuador.
The first Oral-lyn global Phase
III trial initiated in April 2008 had a final patient visit date in August 2011. After appropriate validation, the data from approximately
450 patients was tabulated, reviewed and analyzed. Those results from the Phase III trial along with a comprehensive review and
supplemental analyses of approximately 40 prior Oral-lyn clinical studies were compiled and submitted to the FDA in late December
2011 in a comprehensive package including a composite metanalysis of all safety data. Following notification of the completion
of their review, we will schedule a meeting with the FDA to arrive at a consensus for the pathway for regulatory approval, including
any additional clinical or pharmacological studies that might be required to support regulatory approval or enhance marketing success.
4
Using our buccal delivery technology, we have also launched
a consumer/over-the-counter glucose spray called Glucose RapidSpray™. We do not plan to expend significant resources to market
this product in the future. Revenues will not likely be significant unless we engage a major marketing partner to manufacture,
distribute, market and sell this product. In fiscal 2011 and in the first three quarters of fiscal 2012, we received modest revenues
from sales of our commercially available consumer/over-the-counter products. We are currently seeking a global purchaser or licensee
for the Glucose Rapid Spray Product.
We face competition from other providers of alternate forms
of insulin. Some of our most significant competitors, Pfizer, Eli Lilly, and Novo Nordisk, have announced that they will discontinue
development and/or sale of their inhalable forms of insulin. Generex Oral-lyn™ is not an inhaled insulin; rather, it is a
buccally absorbed formulation with no residual pulmonary deposition. We believe that our buccal delivery technology offers several
advantages, including the ease of use, portability, avoidance of pulmonary inhalation and safety profile. Furthermore, insulin
administered through the Generex Oral-lyn™ RapidMist™ technology is absorbed directly into the blood stream and not
only acts rapidly, but returns to baseline quickly, thereby minimizing the chance of developing hypoglycemia.
Large pharmaceutical companies, such as Merck & Co., Inc.,
GlaxoSmithKline PLC, Novartis, Inc., MedImmune Inc. (a subsidiary of Astra-Zeneca, Inc.) and others, also compete against us in
the oncology, immunomedicine and vaccine markets. These companies have competing experience and expertise in securing government
contracts and grants to support research and development efforts, conducting testing and clinical trials, obtaining regulatory
approvals to market products, as well as manufacturing and marketing approved products. As such, they are also considered significant
competitors in these fields of pharmaceutical products and therapies. There are also many smaller companies which are pursuing
similar technologies in these fields who are considered to be competitors of Generex.
We are a development stage company with a limited history of
operations, and do not expect sufficient revenues to support our operation in the immediately foreseeable future. To date, we have
not been profitable and our accumulated net loss available to shareholders was $356,035,942 at April 30, 2012. As of April 30,
2012, our current cash position is not sufficient to meet our working capital needs for the next twelve months. To continue operations,
we will require additional funds to support our working capital requirements and any development activities, or will need to suspend
operations. Management is seeking various alternatives to ensure that we can meet some of our operating cash flow requirements
through financing activities, such as private placement of our common stock, preferred stock offerings and offerings of debt and
convertible debt instruments as well as through merger or acquisition opportunities. In addition, management is actively seeking
strategic alternatives, including strategic investments and divestitures. Management has sold, and is also seeking further sales
of, non-essential real estate assets which are classified as Assets Held for Investment to augment its cash position. We cannot
provide any assurance that we will obtain the required funding. Our inability to obtain required funding in the near future or
our inability to obtain funding on favorable terms will have a material adverse effect on our operations and our strategic development
plan for future growth. If we cannot successfully raise additional capital and implement our strategic development plan, our liquidity,
financial condition and business prospects will be materially and adversely affected and we may have to cease operations.
We operate in only one segment: the research and development
of drug delivery systems and technologies for metabolic and immunological diseases.
We were incorporated in the State of Delaware in 1997.  Our
principal offices are located at 555 Richmond Street West, Suite 604, Toronto, Ontario, Canada M5V 3B1. Our telephone number is
(416) 364-2551 and our Internet address is
www.generex.com
. Information contained in, or accessible through, our website
does not constitute a part of this prospectus.   Copies of our current and periodic reports filed with the SEC are
available at the SEC Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549, and online at www.sec.gov.
5
THE OFFERING
Securities offered
We are registering up to an aggregate of 88,121,621 shares of
        common stock issued and outstanding, issuable upon conversion or exercise, as applicable, of outstanding preferred stock and warrants,
        and issuable in lieu of cash payments of dividends on such preferred stock.  The following shares may be offered, from
        time to time, for resale under this prospectus:
•             22,800,000
        shares of common stock issuable (i) upon conversion of the Series C 9% Convertible Preferred Stock sold in our August 10, 2012
        offering, (ii) upon exercise of the warrants sold in our August 10, 2012 offering which may be exercised at a price of $0.08 per
        share, and (iii) in lieu of the cash payment of dividends on the preferred stock sold in our August 10, 2012 offering payable through
        August 10, 2015.
•             3,750,000
        shares of common stock pertaining to (i) additional shares of common stock that may be issuable upon the triggering of ratchet
        provisions of 9,375,000 warrants that were issued in our August 10, 2012 offerings and (ii) additional shares of common stock that
        may be issuable upon the triggering of ratchet provisions of the Series C 9% Convertible Preferred Stock.
And the following additional shares of common stock issuable
        upon the exercise of warrants or conversion of preferred stock due to triggering of ratchet provisions in connection with our August
        10, 2012 offering of Series C 9% Convertible Preferred Stock:
•              30,171,626
        shares of common stock issuable upon exercise of certain warrants sold in our March 31, 2008 offering which may be exercised
        at a price of $0.08 per share due to the triggering of ratchet provisions;
•             3,499,999
        shares of common stock issuable upon exercise of the warrants sold in our January 25, 2011 offering which may be exercised at a
        price of $0.08 per share due to the triggering of ratchet provisions;
•             2,916,644
        shares of common stock issuable upon exercise of the warrants sold in our July 7, 2011 offering which may be exercised at a price
        of $0.08 per share due to the triggering of ratchet provisions;
•             23,333,332
        shares of common stock issuable (i) upon conversion of the Series B 9% Convertible Preferred Stock sold in our February 1, 2012
        offering, and (ii) upon exercise of the warrants sold in our February 1, 2012 offering which may be exercised at a price of $0.08
        per share due to the triggering of ratchet provisions;.
This Prospectus also relates to:
•             an
        aggregate of 1,650,000 shares of common stock issued to placement agents and consultants.
6
Common stock offering by the Company
None.
Common stock to be outstanding after this offering
450,921,406 shares
Use of proceeds
We will not receive any proceeds from the sale of shares in this offering by the Selling Security Holders. However, we will receive proceeds from the exercise of the warrants if the warrants are exercised for cash. See "Use of Proceeds".
Principal market; trading symbol
OTC Bulletin Board; "GNBT.OB"
Risk factors
See "Risk Factors" beginning on page 8 of this registration statement for a discussion of factors you should carefully consider before deciding to invest in our securities.
7
RISK FACTORS
Investment in our company involves a high
degree of risk. You should carefully consider the following risks, together with the financial and other information contained
in this prospectus. Each of the risks described in these sections and documents could adversely affect our business, financial
condition, results of operations and prospects, and could result in a complete loss of your investment. This prospectus contains
forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated
in these forward-looking statements as a result of certain factors, including the risks mentioned above.
Our business and results of operations are subject to numerous
risks, uncertainties and other factors that you should be aware of, some of which are described below. The risks, uncertainties
and other factors described below are not the only ones facing our company. Additional risks, uncertainties and other factors not
presently known to us or that we currently deem immaterial may also impair our business operations.
Any of the risks, uncertainties and other factors could have
a materially adverse effect on our business, financial condition or results of operations and could cause the trading price of
our common stock to decline substantially.
Risks Related to Our Financial Condition
We will require additional financing to continue our operations.
As of April 30, 2012, our current cash position is not sufficient
to meet our working capital needs for the next twelve months based on the pace of our planned activities. To continue operations,
we will require additional funds to support our working capital requirements and any expansion or other activities, or will need
to significantly reduce our clinical trials and other planned activities or suspend operations. Management is seeking various alternatives
to ensure that we can meet some of our operating cash flow requirements through financing activities, such as private placement
of our common stock, preferred stock offerings and offerings of debt and convertible debt instruments as well as through merger
or acquisition opportunities. The securities purchase agreement that we entered into on August 8, 2012 with certain investors limits
the financing activities that we may undertake in the near future as it prohibits us from (i) issuing additional equity securities
until 60 days after the effective date of a registration statement covering the resale of the common stock issuable upon exercise
of the warrants and conversion of the preferred stock sold in that transaction and (ii) issuing additional debt or equity securities
with variable a conversion or exercise price until August 10, 2013. In addition, management is actively seeking strategic alternatives,
including strategic investments and divestitures. Management has sold, and is also seeking further sales of, non-essential real
estate assets which are classified as Assets Held for Investment to augment its cash position.
We cannot provide any assurance that we will obtain the required
funding. Our inability to obtain required funding in the near future or our inability to obtain funding on favorable terms will
have a material adverse effect on our operations and our strategic development plan for future growth. If we cannot successfully
raise additional capital and implement our strategic development plan, our liquidity, financial condition and business prospects
will be materially and adversely affected and we may have to cease operations.
We have a history of losses and will incur additional
losses.
We are a development stage company with a limited history of
operations, and do not expect sufficient revenues to support our operation in the immediately foreseeable future. We do not expect
to receive significant revenues in Ecuador, Algeria and Lebanon where we have been approved for commercial sale in the next twelve
months. While we have entered into a licensing and distribution agreement with a leading Indian-based pharmaceutical company and
insulin distributor, we do not anticipate recognizing revenue from sales of Generex Oral-lyn™ in India in 2012, as we have
to complete an in-country clinical study before the product can be offered for commercial sale in India.
To date, we have not been profitable and our accumulated net
loss available to shareholders was $356,035,942at April 30, 2012. Our losses have resulted principally from costs incurred in research
and development, including clinical trials, and from general and administrative costs associated with our operations. While we
seek to attain profitability, we cannot be sure that we will ever achieve product and other revenue sufficient for us to attain
this objective.
8
With the exception of Generex Oral-lyn™, which has received
regulatory approval in Ecuador, India (subject to the completion of an in-country study), Lebanon and Algeria, our product candidates
are in research or early stages of pre-clinical and clinical development. We will need to conduct substantial additional research,
development and clinical trials. We will also need to receive necessary regulatory clearances both in the United States and foreign
countries and obtain meaningful patent protection for and establish freedom to commercialize each of our product candidates. We
must also complete further clinical trials and seek regulatory approvals for Generex Oral-lyn™ in countries outside of Ecuador,
India, Lebanon and Algeria. We cannot be sure that we will obtain required regulatory approvals, or successfully research, develop,
commercialize, manufacture and market any other product candidates. We expect that these activities, together with future general
and administrative activities, will result in significant expenses for the foreseeable future.
Our independent auditors have expressed substantial doubt
about our ability to continue as a going concern as of July 31, 2011.
To date, we have not been profitable and our accumulated net
loss available to shareholders was $347,744,756 at July 31, 2011, and our consolidated balance sheet reflected a stockholders'
deficiency of $8,442,136 at that date. Our accumulated net loss available to shareholders was $356,035,942 at April 30, 2012. At
April 30, 2012, our consolidated balance sheet reflects a stockholders' deficiency of $7,651,468. We received a report from
our independent auditors for the year ended July 31, 2011 that includes an explanatory paragraph describing an uncertainty as to
Generex's ability to continue as a going concern. We must secure financing to continue our operations.
Our research and development and commercialization efforts
may depend on entering into agreements with corporate collaborators.
Because we have limited resources, we have sought to enter into
collaboration agreements with other pharmaceutical companies that will assist us in developing, testing, obtaining governmental
approval for and commercializing products using our buccal delivery and immunomedicine technologies. We may be unable to achieve
commercialization of any of our products until we obtain a large pharmaceutical partner to assist us in such commercialization
efforts. To date, we have not entered into any such collaborative arrangements. Any collaborator with whom we may enter into such
collaboration agreements may not support fully our research and commercial interests since our program may compete for time, attention
and resources with such collaborator's internal programs. Therefore, these collaborators may not commit sufficient resources to
our program to move it forward effectively, or that the program will advance as rapidly as it might if we had retained complete
control of all research, development, regulatory and commercialization decisions.
Risks Related to Our Technologies
With the exception of Generex Oral-lyn™, our technologies
and products are at an early stage of development and we cannot expect significant revenues in respect thereof in the foreseeable
future.
We have no products approved for commercial sale at the present
time with the exception of Generex Oral-lyn™ in Ecuador, Lebanon, Algeria and India (subject to further study). To be profitable,
we must not only successfully research, develop and obtain regulatory approval for our products under development, but also manufacture,
introduce, market and distribute them once development is completed or find a partner that can perform these activities on our
behalf. We have yet to manufacture, market and distribute these products on a large-scale commercial basis, and we expect to receive
only modest revenues, if any, from product sales in fiscal year 2013. We may not be successful in one or more of these stages of
the development or commercialization of our products, and/or any of the products we develop may not be commercially viable. Until
we can establish that they are commercially viable products, we will not receive significant revenues from ongoing operations.
9
Until we receive regulatory approval to sell our pharmaceutical
products in additional countries, our ability to generate revenues from operations may be limited and those revenues may be insufficient
to sustain operations. Many factors impact our ability to obtain approvals for commercially viable products.
Our only pharmaceutical product that has been approved for commercial
sale by drug regulatory authorities is our oral insulin spray formulation, and that approval was obtained in Ecuador, Lebanon,
Algeria and India (subject to the completion of an in-country study). We have begun the regulatory approval process for our oral
insulin, buccal morphine and fentanyl products in other countries, and we have initiated late stage clinical trials of Generex
Oral-lyn™ at clinical trial sites in North America and other countries according to the initial Phase III clinical plan.
The final subjects completed the trial in August 2011. After appropriate validation, the data from approximately 450 patients was
tabulated, reviewed and analyzed. Those results from the Phase III trial along with a comprehensive review and supplemental analyses
of approximately 40 prior Oral-lyn clinical studies were compiled and submitted to the FDA in late December 2011 in a comprehensive
package including a composite metanalysis of all safety data. Following notification of the completion of their review, we will
schedule a meeting with the FDA to arrive at a consensus for the pathway for regulatory approval, including any additional clinical
or pharmacological studies that might be required to support regulatory approval or enhance marketing success.
Our immunomedicine products are in the pre-clinical stage of
development, with the exception of a Phase II trial in human patients with stage II HER-2/neu positive breast cancer (U.S.), a
Phase I trial in human patients with prostate cancer (Athens, Greece) completed in August 2009, a Phase I trial in human patients
with breast or ovarian cancer (U.S.) and a Phase I trial in human volunteers of a peptide vaccine for use against the H5N1 avian
influenza virus (Beirut, Lebanon). Preliminary results from the Phase II breast cancer trial suggest a 46% reduction in breast
cancer recurrence in low HER2 expressing tumors, together with an excellent safety profile. We expect to complete the trial and
finalize results in the second half of the 2012 calendar year and while preliminary results are promising, they are not statistically
significant and final results could deviate.
Pre-clinical and clinical trials of our products, and the manufacturing
and marketing of our technologies, are subject to extensive, costly and rigorous regulation by governmental authorities in the
United States, Canada and other countries. The process of obtaining required regulatory approvals from the FDA and other regulatory
authorities often takes many years, is expensive and can vary significantly based on the type, complexity and novelty of the product
candidates. For these reasons, it is possible we will not receive regulatory approval for any prescription pharmaceutical product
candidate in any countries other than Ecuador, Lebanon, Algeria and India.
In addition, we cannot be sure when or if we will be permitted
by regulatory agencies to undertake additional clinical trials or to commence any particular phase of clinical trials. Because
of this, statements in this Registration Statement or our reports filed with the SEC regarding the expected timing of clinical
trials cannot be regarded as actual predictions of when we will obtain regulatory approval for any "phase" of clinical
trials.
Delays in obtaining United States or other foreign approvals
for our oral insulin product could result in substantial additional costs to us, and, therefore, could adversely affect our ability
to continue operations. If regulatory approval is ultimately granted in any countries other than Ecuador, Lebanon, Algeria and
India, the approval may place limitations on the intended use of the product we wish to commercialize, and may restrict the way
in which we are permitted to market the product.
Due to legal and factual uncertainties regarding the scope
and protection afforded by patents and other proprietary rights, we may not have meaningful protection from competition.
Our long-term success will substantially depend upon our ability
to protect our proprietary technologies from infringement, misappropriation, discovery and duplication and avoid infringing the
proprietary rights of others. Our patent rights and the patent rights of biotechnology and pharmaceutical companies in general,
are highly uncertain and include complex legal and factual issues. Because of this, our pending patent applications may not be
granted. These uncertainties also mean that any patents that we own or will obtain in the future could be subject to challenge,
and even if not challenged, may not provide us with meaningful protection from competition. Due to our financial uncertainties,
we may not possess the financial resources necessary to enforce our patents. Patents already issued to us or our pending applications
may become subject to dispute, and any dispute could be resolved against us.
10
Because a substantial number of patents have been issued in
the field of alternative drug delivery and because patent positions can be highly uncertain and frequently involve complex legal
and factual questions, the breadth of claims obtained in any application or the enforceability of our patents cannot be predicted.
Consequently, we do not know whether any of our pending or future patent applications will result in the issuance of patents or,
to the extent patents have been issued or will be issued, whether these patents will be subject to further proceedings limiting
their scope, will provide significant proprietary protection or competitive advantage, or will be circumvented, invalidated or
expire.
Also because of these legal and factual uncertainties, and because
pending patent applications are held in secrecy for varying periods in the United States and other countries, even after reasonable
investigation we may not know with certainty whether any products that we (or a licensee) may develop will infringe upon any patent
or other intellectual property right of a third party. For example, we are aware of certain patents owned by third parties that
such parties could attempt to use in the future in efforts to affect our freedom to practice some of the patents that we own or
have applied for. Based upon the science and scope of these third-party patents, we believe that the patents that we own or have
applied for do not infringe any such third-party patents; however, we cannot know for certain whether we could successfully defend
our position, if challenged. We may incur substantial costs if we are required to defend our intellectual property in patent suits
brought by third parties. These legal actions could seek damages and seek to enjoin testing, manufacturing and marketing of the
accused product or process. In addition to potential liability for significant damages, we could be required to obtain a license
to continue to manufacture or market the accused product or process.
Risks Related to Marketing of Our Potential Products
We may not become, or stay, profitable even if our pharmaceutical
products are approved for sale.
Even if we obtain regulatory approval to market our oral insulin
product outside of Ecuador, India, Lebanon and Algeria or to market any other prescription pharmaceutical product candidate, many
factors may prevent the product from ever being sold in commercial quantities. Some of these factors are beyond our control, such
as:
·
acceptance of the formulation or treatment by health care professionals and diabetic patients;
·
the availability, effectiveness and relative cost of alternative diabetes or immunomedicine treatments
that may be developed by competitors; and
·
the availability of third-party (i.e. insurer and governmental agency) reimbursements.
We will not receive significant revenues from Generex Oral-lyn™
or any of our other pharmaceuticals products that may receive regulatory approval until we can successfully manufacture, market
and distribute them in the relevant markets.
We have to depend upon others for marketing and distribution
of our products, and we may be forced to enter into contracts limiting the benefits we may receive and the control we have over
our products. We intend to rely on collaborative arrangements with one or more other companies that possess strong marketing and
distribution resources to perform these functions for us. We may not be able to enter into beneficial contracts, and we may be
forced to enter into contracts for the marketing and distribution of our products that substantially limit the potential benefits
to us from commercializing these products. In addition, we will not have the same control over marketing and distribution that
we would have if we conducted these functions ourselves.
We may not be able to compete with treatments now being
marketed and developed, or which may be developed and marketed in the future by other companies.
Our products will compete with existing and new therapies and
treatments. We are aware of a number of companies currently seeking to develop alternative means of delivering insulin, as well
as new drugs intended to replace insulin therapy at least in part. We are also aware of a number of companies currently seeking
to develop alternative means of enhancing and suppressing peptides. In the longer term, we also face competition from companies
that seek to develop cures for diabetes and other malignant, infectious, autoimmune and allergic diseases through techniques for
correcting the genetic deficiencies that underlie some of these diseases.
11
Numerous pharmaceutical, biotechnology and drug delivery companies,
hospitals, research organizations, individual scientists and nonprofit organizations are engaged in the development of alternatives
to our technologies. Some of these companies have greater research and development capabilities, experience, manufacturing, marketing,
financial and managerial resources than we do. Collaborations or mergers between large pharmaceutical or biotechnology companies
with competing drug delivery technologies could enhance our competitors' financial, marketing and other resources. Developments
by other drug delivery companies could make our products or technologies uncompetitive or obsolete. Accordingly, our competitors
may succeed in developing competing technologies, obtaining FDA approval for products or gaining market acceptance more rapidly
than we can.
Some of our most significant competitors, Pfizer, Eli Lilly,
and Novo Nordisk, have discontinued development and/or sale of their inhalable forms of insulin. Unlike inhaled insulin formulations,
Generex Oral-lyn™ is a buccally absorbed formulation with no residual pulmonary deposition.
If government programs and insurance companies do not
agree to pay for or reimburse patients for our pharmaceutical products, our success will be impacted.
Sales of our oral insulin formulation in Ecuador, Lebanon, Algeria
and India and our other potential pharmaceutical products in other markets will depend in part on the availability of reimbursement
by third-party payers such as government health administration authorities, private health insurers and other organizations. Third-party
payers often challenge the price and cost-effectiveness of medical products and services. Governmental approval of health care
products does not guarantee that these third-party payers will pay for the products. Even if third-party payers do accept our product,
the amounts they pay may not be adequate to enable us to realize a profit. Legislation and regulations affecting the pricing of
pharmaceuticals may change before our products are approved for marketing and any such changes could further limit reimbursement.
Risks Related to Potential Liabilities
We face significant product liability risks, which may
have a negative effect on our financial condition.
The administration of drugs or treatments to humans, whether
in clinical trials or commercially, can result in product liability claims whether or not the drugs or treatments are actually
at fault for causing an injury. Furthermore, our pharmaceutical products may cause, or may appear to have caused, serious adverse
side effects (including death) or potentially dangerous drug interactions that we may not learn about or understand fully until
the drug or treatment has been administered to patients for some time. Product liability claims can be expensive to defend and
may result in large judgments or settlements against us, which could have a severe negative effect on our financial condition.
We maintain product liability insurance in amounts we believe to be commercially reasonable for our current level of activity and
exposure, but claims could exceed our coverage limits. Furthermore, due to factors in the insurance market generally and our own
experience, we may not always be able to purchase sufficient insurance at an affordable price. Even if a product liability claim
is not successful, the adverse publicity and time and expense of defending such a claim may interfere with our business.
Risks Related to the Market for Our Common Stock
Our stock price is below $5.00 per share and is treated
as a "penny stock", which places restrictions on broker-dealers recommending the stock for purchase.
Our common stock is defined as "penny stock" under
the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act, and the rules promulgated thereunder. The
SEC has adopted regulations that define "penny stock" to include common stock that has a market price of less than
$5.00 per share, subject to certain exceptions. These rules include the following requirements:
12
·
broker-dealers must deliver, prior to the transaction a disclosure schedule prepared by the SEC relating to the penny stock
market;
·
broker-dealers must disclose the commissions payable to the broker-dealer and its registered representative;
·
broker-dealers must disclose current quotations for the securities;
·
if a broker-dealer is the sole market-maker, the broker-dealer must disclose this fact and the broker-dealers presumed control
over the market; and
·
a broker-dealer must furnish its customers with monthly statements disclosing recent price information for all penny stocks
held in the customer's account and information on the limited market in penny stocks.
Additional sales practice requirements are imposed on broker-dealers
who sell penny stocks to persons other than established customers and accredited investors. For these types of transactions, the
broker-dealer must make a special suitability determination for the purchaser and must have received the purchaser's written
consent to the transaction prior to sale. If our common stock remains subject to these penny stock rules these disclosure requirements
may have the effect of reducing the level of trading activity in the secondary market for our common stock. As a result, fewer
broker-dealers may be willing to make a market in our stock, which could affect a shareholder's ability to sell their shares.
The price of our common stock may be affected by a limited
trading volume, may fluctuate significantly and may not reflect the actual value of our business.
There may be a limited public market for our common stock
on the over the counter bulletin board market, and there can be no assurance that an active trading market will continue. An
absence of an active trading market could adversely affect our stockholders' ability to sell our common stock in short
time periods, or at all. Our common stock has experienced, and is likely to experience in the future, significant price and
volume fluctuations that could adversely affect the market price of our common stock without regard to our operating
performance. In addition, we believe that factors, such as our sale of securities in connection with capital raising
activities, could cause the price of our common stock to fluctuate substantially. Thus, the price at which shares of our
common stock may trade from time to time may not reflect the actual value of our business or the actual value of our common
stock. From time to time, we may hire companies to assist us in pursuing investor relations strategies to generate increased
volumes of investment in our common stock. Such activities may result, among other things, in causing the price of our common
stock to increase on a short-term basis.
Furthermore, the stock market generally and the market for stocks
of companies with lower market capitalizations and small biopharmaceutical companies, like us, have from time to time experienced,
and likely will again experience significant price and volume fluctuations that are unrelated to the operating performance of a
particular company.  During the third calendar quarter of 2008 and continuing to date, we, like many other publicly traded
companies, have experienced a sharp decline in the price of our stock attributable to concerns about the current global recession.
Risks Related to Ownership of Our Common Stock
If an exemption under state securities laws is not available
for resales of shares of common stock, state securities regulators have the authority to seek rescission of such resales and, in
some instances, may seek restitution or disgorgement of amounts received on such resales.
Because the shares of common stock registered under this registration
statement on Form S-1 have not been registered or qualified for resale under the securities laws of any state, an exemption from
registration or qualification under state law is necessary for compliance with state securities laws. Generex has taken no steps
to register or qualify, nor seek an exemption for, the resale of the shares of common stock under the securities laws of any state.
The availability of exemptions will depend on the laws of the particular state in which a holder of the shares resides and the
circumstances under which such holder seeks to sell the shares. If an exemption is not available but a resale of the shares is
effected, state securities laws give state securities regulators authority to seek rescission (or cancellation) of transactions
involving sales of securities that are not registered, qualified or exempted and, in some instances, authority to require restitution
or disgorgement of profits from the sales of such securities and to impose statutory interest or penalties on disgorged amounts.
While we are not aware of any state securities regulator taking action with respect to the resales of shares of our common stock,
we cannot provide any assurance that regulators will refrain from taking such action in the future.
13
Provisions of our Restated Certificate of Incorporation
could delay or prevent the acquisition or sale of our business.
Our Restated Certificate of Incorporation permits our Board
of Directors to designate new series of preferred stock and issue those shares without any vote or action by our stockholders.
Such newly authorized and issued shares of preferred stock could contain terms that grant special voting rights to the holders
of such shares that make it more difficult to obtain stockholder approval for an acquisition of our business or increase the cost
of any such acquisition.
Provisions of the Delaware General Corporation Law may
prohibit us from making required payments with respect to our Series B and Series C 9% convertible preferred stock, which default
may constitute a violation of our certificate of incorporation or a breach of our contractual obligations to the holders of our
preferred stock.
We are incorporated in the State of Delaware and are subject
to the provisions of the Delaware General Corporation Law (the "DGCL"). Section 170 of the DGCL provides, among other
things, that a Delaware corporation may declare and pay dividends upon shares of its capital stock out of its surplus, as defined
in and computed in accordance with Sections 154 and 244 of the DGCL.  As of the date hereof, we have 1,172 shares of
our Series B 9% convertible preferred stock outstanding and 750 shares of our Series C 9% convertible preferred stock outstanding.
As of the date hereof, we have sufficient surplus to make dividend payments with respect to our outstanding Series B and Series
C
9% convertible preferred stock, as well as sufficient surplus to make the make-whole payments that may be due to
the holders of our Series B and Series C
9% convertible preferred stock, should such make-whole payments be deemed
a dividend under the DGCL.  However, our surplus will decrease as we spend our capital on operational activities, unless
our spending is offset by capital-raising transactions. If our surplus is less than then-due dividend payments, including make-whole
payments if they are deemed a dividend under the DGCL, we will be prohibited by the DGCL from making the dividend or make-whole
payment, which may constitute a violation of our certificate of incorporation or a breach of our contractual obligations to the
holders of our Series B and Series C 9% convertible preferred stock.
Our recent equity financings have and will dilute current
stockholders and could prevent the acquisition or sale of our business.
The equity financing transactions into which we have recently
entered have and will dilute current stockholders. At April 30, 2012, there were 55,148,530 shares of common stock issuable upon
exercise of the warrants that we issued in a private placement in March 2008, in the registered direct offerings conducted in June,
August and September 2009, in connection with the sales to Seaside 88, LP in April, May and June 2010, in the registered direct
offering in January to April 2011 and in the registered direct offering in July 2011. In addition, in connection with the private
placement that closed on February 1, 2012, an additional 13,333,333 shares of common stock are issuable upon conversion of the
recently issued Series B 9% Convertible Preferred Stock, as well as 13,333,333 shares of common stock issuable upon exercise of
the warrants in connection with such preferred stock and in connection with the private placement that closed on August 10, 2012,
an additional 9,375,000 shares of common stock are issuable upon conversion of the recently issued Series C 9% Convertible Preferred
Stock, as well as 9,375,000 shares of common stock issuable upon exercise of the warrants in connection with such preferred stock
and 59,921,621 additional shares issuable upon the triggering of the ratchet provisions of the above-mentioned warrants and the
Series B convertible preferred stock . Together the shares of common stock issuable upon exercise or conversion of the above-mentioned
warrants and preferred stock represent approximately 50% of the shares of common stock currently outstanding. Assuming the holders
of the warrants convert and exercise all of the warrants into shares of common stock, the number of shares of issued and outstanding
common stock will increase significantly, and current stockholders will own a smaller percentage of the outstanding common stock
of Generex. The issuance of shares of common stock pursuant to the warrants will also have a dilutive effect on earnings per share
and may adversely affect the market price of the common stock.
14
In addition, the issuance of shares of common stock upon exercise
of the warrants issued in the March 2008 private placement, the registered direct offerings in June, August and September 2009
and in connection with the sales to Seaside in April, May and June 2010, in the registered direct offering in January to April
2011, the registered direct offering in July 2011 and the private placements in February 2012 and August 2012, could have an anti-takeover
effect because such issuance will make it more difficult for, or discourage an attempt by, a party to obtain control of Generex
by tender offer or other means. The issuance of common stock upon the exercise of the warrants will increase the number of shares
entitled to vote, increase the number of votes required to approve a change of control of the company, and dilute the interest
of a party attempting to obtain control of the company.
If we raise funds through one or more additional equity financings
in the future, it will have a further dilutive effect on existing holders of our shares by reducing their percentage ownership.
The shares may be sold at a time when the market price is low because we are in need of the funds. This will dilute existing holders
more than if our stock price was higher. In addition, equity financings normally involve shares sold at a discount to the current
market price. Most of our outstanding warrants have price protection provisions, which decrease the exercise price of the warrant
and increase the number of shares which may be purchased upon exercise of the warrants, if we sell additional equity at an effective
price per common share less than the current exercise price of the warrant. Therefore, equity financings at a low price per share
will result in even more dilution to existing shareholders.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
We have made statements in this prospectus that may constitute
"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act").
The Act limits our liability in any lawsuit based on forward-looking statements that we have made. All statements, other than statements
of historical facts, included in this prospectus that address activities, events or developments that we expect or anticipate will
or may occur in the future, including such matters as our projections, future capital expenditures, business strategy, competitive
strengths, goals, expansion, market and industry developments and the growth of our businesses and operations, are forward-looking
statements. These statements can be identified by introductory words such as "expects," "anticipates," "plans,"
"intends," "believes," "will," "estimates," "projects" or words of similar meaning,
and by the fact that they do not relate strictly to historical or current facts. Our forward-looking statements address, among
other things:
·
our expectations concerning product candidates for our technologies;
·
our expectations concerning existing or potential development and license agreements for third-party collaborations and joint ventures;
·
our expectations of when different phases of clinical activity may commence and conclude;
·
our expectations of when regulatory submissions may be filed or when regulatory approvals may be received; and
·
our expectations of when commercial sales of our products may commence and when actual revenue from the product sales may be received.
Any or all of our forward-looking statements may turn out to
be wrong. They may be affected by inaccurate assumptions that we might make or by known or unknown risks and uncertainties. Actual
outcomes and results may differ materially from what is expressed or implied in our forward-looking statements. Among the factors
that could affect future results are:
·
the inherent uncertainties of product development based on our new and as yet not fully proven technologies;
·
the risks and uncertainties regarding the actual effect on humans of seemingly safe and efficacious formulations and treatments when tested clinically;
·
the inherent uncertainties associated with clinical trials of product candidates;
·
the inherent uncertainties associated with the process of obtaining regulatory approval to market product candidates;
15
·
the inherent uncertainties associated with commercialization of products that have received regulatory approval;
·
·
the further decline in our stock price;
our ability to pay dividends on our recently issued preferred
        stock;
·
our ability to obtain the necessary financing to fund our operations.
Additional factors that could affect future results are set
forth above under the caption "Risk Factors."  We caution investors that the forward-looking statements contained
in this prospectus must be interpreted and understood in light of conditions and circumstances that exist as of the date of this
prospectus. We expressly disclaim any obligation or undertaking to update or revise forward-looking statements to reflect any changes
in management's expectations resulting from future events or changes in the conditions or circumstances upon which such expectations
are based.  You are advised, however, to consult any further disclosures we make on related subjects in our 10-K, 10-Q
and 8-K reports to the SEC.
USE OF PROCEEDS
We will not receive any of the proceeds from the sale of shares
of common stock in this offering. However, we may receive up to approximately $4.6 million upon exercise of the 57,629,955 warrants
covered by this prospectus in the event the warrants are exercised for cash that have an exercise price of $0.08 per share. We
intend to use any proceeds from the exercise of warrants for general corporate and working capital purposes.
SELLING SECURITY HOLDERS
This prospectus relates to the resale of our common stock issued
to certain employees, consultants and placement agents, issuable upon exercise, of certain warrants issued in the March 31, 2008,
June 15, 2009, August 6, 2009, September 14, 2009, January 25, 2011, July 7, 2011, February 1, 2012 and August 10, 2012 offerings,
issuable upon conversion of shares of preferred stock issued in the February 1, 2012 and August 10, 2012 offerings, and issuable
in lieu of the cash payment of dividends and "make-whole" payments on such preferred stock payable through August 10,
2015. In addition, we are registering 1.20 times the number of shares issuable upon exercise of certain warrants originally issued
by us on August 10, 2012, which represents a good faith estimate of the maximum number of shares of common stock issuable upon
exercise of additional warrants that may be issuable if the price protection feature of the original warrants is triggered, as
well as 1.20 times the number of common shares underlying the Series C 9% Convertible Preferred Stock that may be issuable upon
conversion if the price protection feature of the preferred stock is triggered.
The following table, based upon information currently known
by us, sets forth as of September 6, 2012: (i) the number of shares held of record or beneficially by the Selling Security Holders
as of such date and assuming conversion or exercise (as the case may be) of all warrants held by the Selling Security Holders as
of such date, (ii) the number of shares that may be offered under this prospectus, and (iii) a footnote reference to any material
relationship between us and the Selling Security Holder. The table below includes 120% of the shares issuable upon exercise of
the outstanding warrants originally issued on August 10, 2012 and the Series C 9% Convertible Preferred Stock, which both include
a price protection feature. In addition, the sum of the shares listed in the "Shares That May Be Offered and Sold Hereby"
column reflects the additional 4,050,000 shares of common stock which may be issued as payment for dividends on the Series C 9%
Convertible Preferred Stock through August 10, 2012 and "make-whole payments" upon conversion of the Series C 9% Convertible
Preferred Stock prior August 10, 2012 each in an amount equal to $270 per $1,000 of stated value of such preferred stock, less
the amount of all prior quarterly dividends paid thereon before the relevant conversion date.
Beneficial ownership is determined in accordance with the rules
of the SEC and includes voting or investment power with respect to shares of common stock. Unless otherwise indicated below, to
our knowledge, all persons named in the table have sole voting and investment power with respect to the shares of common stock
and other securities beneficially owned by them. The inclusion of any securities in this table does not constitute an admission
of beneficial ownership for the person named below.
16
Selling Security Holder
Beneficial
Ownership Prior
to this Offering
(1),(2)
Shares that may
be Offered and
Sold Hereby
(2),(3)
Beneficial
Ownership After
this Offering
% Holding
After
Completion of
this Offering
Seahawk Capital Partners, Inc. (4)
5,069,142
1,650,000
3,419,142
*
Cranshire Capital, L.P. (5)
36,430,902
15,605,926
20,824,976
5.4
%
Iroquois Master Fund (6)
6,720,774
2,117,507
4,603,267
1.3
%
Iroquois Capital, LP (7)
9,508,882
4,437,478
5,071,404
1.4
%
Iroquois Capital Opportunity Fund, LP (8)
2,329,497
808,181
1,521,316
*
Rockmore Inv Master Trust (9)
16,630,596
7,202,534
9,428,062
2.5
%
Alpha Capital Anstalt (10)
47,315,784
32,034,000
15,281,784
4.1
%
Ellis International Ltd. (11)
7,650,217
5,290,000
2,360,217
*
Momona Capital LLC (12)
2,280,833
1,760,000
520,833
*
Lane Ventures, Inc. (13)
2,280,833
1,760,000
520,833
*
Osher Capital Partners LLC (14)
2,255,833
1,760,000
495,833
*
Assameka Capital Inc. (15)
1,835,967
1,114,332
721,635
*
Whalehaven Opportunities Fund (16)
1,041,665
486,110
555,555
*
Whalehaven Capital Fund Limited (17)
20,532,372
12,095,553
8,436,819
2.3
%
Holdings of Selling Security Holders **
161,883,297
88,121,621
73,761,676
16.9
%
*
Less than 1%
(1)
Includes all shares beneficially owned by the Selling Security Holders as of September 6, 2012.
(2)
Includes shares of common stock issuable upon exercise of the warrants in connection with the March 31, 2008, June 15, 2009,
August 6, 2009, September 14, 2009, January 25, 2011, July 7, 2011, February 1, 2012 and August 10, 2012 offerings and issuable
upon conversion of shares of the Series B 9% Convertible Preferred Stock issued on February 1, 2012 and conversion of the Series
C 9% Convertible Preferred Stock issued on August 10, 2012. The warrants and preferred stock contain exercise and conversion limitations
providing that a holder thereof may not exercise or convert (as the case may be) to the extent (but only to the extent) that, if
after giving effect to such conversion or exercise (as the case may be), the holder or any of its affiliates would beneficially
own in excess of 4.99% or 9.99%, as applicable (the "Maximum Percentage") of the outstanding shares of common stock
immediately after giving effect to such exercise or conversion (as the case may be). To the extent the above limitation applies,
the determination of whether a warrant or share of preferred stock shall be exercisable or convertible (vis-à-vis other
convertible, exercisable or exchangeable securities owned by the holder) shall, subject to such Maximum Percentage limitation,
be determined on the basis of the first submission to Generex for conversion, exercise or exchange (as the case may be).
Accordingly, the number of shares of common stock
set forth in the table as being registered for a Selling Security Holder may exceed the number of shares of common stock that the
Selling Security Holder could own beneficially at any given time through its ownership of the warrants and preferred stock. Additionally,
for purposes of calculating the "Beneficial Ownership After This Offering," the registered shares are being treated
as though they were all sold on the same day, and therefore because of the foregoing conversion and exercise limitations, the number
of shares reflected as being owned after the sale of the registered shares may be less than the shares underlying other remaining
warrants, if any, held by the Selling Security Holder. The number of shares offered by the Selling Security Holders in the table
above reflects 120% of the shares issuable upon conversion of the Series C 9% Convertible Preferred Stock and upon exercise of
the warrants issued in connection with the August 2012 offering; we are registering 120% of such number of shares as a good faith
estimate of the maximum number of shares of common stock that may be issuable if the price protection features of these preferred
stock and warrants are triggered. In the event such additional shares become issuable, the additional shares shall be allocated
among the Selling Security Holders holding such warrants proportionally with their current holdings. The incremental shares have
been allocated as follows in the table above, based on the current proportional holdings of the respective security holders:
17
Selling Security Holder
Estimated incremental shares
which may be issuable due to
warrant and preferred stock
ratchet provisions
Estimated maximum
number of shares issuable
for dividends and "make-
whole payments"
Alpha Capital Anstalt
2,484,000
2,300,000
Ellis International Ltd.
540,000
500,000
Momona Capital LLC
135,000
125,000
Lane Ventures, Inc.
135,000
125,000
Osher Capital Partners LLC
135,000
125,000
Assameka Capital Inc.
81,000
75,000
Whalehaven Capital Fund Limited
540,000
500,000
Total
4,050,000
3,750,000
(3)
Assumes that the Selling Security Holders dispose of all the shares of common stock covered by this prospectus and do not acquire
or dispose of any additional shares of common stock. The Selling Security Holders are not representing, however, that any of the
shares covered by this prospectus will be offered for sale, and the Selling Security Holders reserve the right to accept or reject,
in whole or in part, any proposed sale of shares. We have entered into registration rights agreements with certain of the Selling
Security Holders pursuant to we are required to file a resale registration statement for the shares underlying the warrants and
Series C 9% Convertible Preferred Stock to enable the resale of such shares by such Selling Security Holder on a delayed or continuous
basis under Rule 415 of the Securities Act. Pursuant to the terms of the Series C 9% Convertible Preferred Stock, we also may make
dividend and "make-whole" payments with shares of our common stock.
(4)
Includes warrants to purchase 507,142 shares of common stock related to a placement agent agreement for Generex's June
2009 financing with an exercise price of $0.76 and an expiration date of December 15, 2014, in addition to 750,000 shares issuable
to Seahawk Capital Partners Inc. ("Seahawk") pursuant to a finder's fee agreement, as well as 2,912,000 shares
of common stock held by Seahawk which were earned under a consulting agreement or previous finder's fee agreements. Joseph
Moscato and Michael Caridi are the principals of Seahawk and, as such, have voting and investment control over the securities beneficially
owned by Seahawk. As a result of the foregoing, each of Mr. Moscato and Mr. Caridi may be deemed to have beneficial ownership (as
determined under Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by
Seahawk.
(5)
Includes warrants to purchase 2,989,630 shares of common stock granted on June 15, 2009 with an exercise price of $0.76 and
an expiration date of December 15, 2014, warrants to purchase 28,327,637 shares of common stock granted on March 31, 2008 with
an exercise price of $0.08 and an expiration date of March 31, 2016; and warrants to purchase 5,113,635 shares of common stock
granted on March 31, 2008 with an exercise price of $0.08 and an expiration date of September 30, 2016. Cranshire Capital Advisors,
LLC ("CCA") is the investment manager of Cranshire Capital, LP ("Cranshire") and has voting control and
investment discretion over securities held by Cranshire. Mitchell P. Kopin, the president, the sole member and the sole member
of the Board of Managers of CCA, has voting control over CCA. As a result, each of Mr. Kopin and CCA may be deemed to have beneficial
ownership (as determined under Section 13(d) of the Securities Exchange Act of 1934, as amended) of the securities held by Cranshire.
(6)
Includes warrants to purchase 2,183,257 shares of common stock granted on June 15, 2009 with an exercise price of $0.76 and
an expiration date of December 15, 2014 and warrants to purchase 4,537,517 shares of common stock granted on March 31, 2008 with
an exercise price of $0.08 and an expiration date of March 31, 2016. Iroquois Capital Management L.L.C. ("Iroquois Capital")
is the investment manager of Iroquois Master Fund, Ltd ("IMF").  Consequently, Iroquois Capital has voting control
and investment discretion over securities held by IMF.  As managing members of Iroquois Capital, Joshua Silverman and Richard
Abbe make voting and investment decisions on behalf of Iroquois Capital in its capacity as investment manager to IMF.  As
a result of the foregoing, Mr. Silverman and Mr. Abbe may be deemed to have beneficial ownership (as determined under Section 13(d)
of the Securities Exchange Act of 1934, as amended) of the securities held by IMF.
18
(7)
Includes warrants to purchase 9,508,884 shares of common stock granted on March 31, 2008 with an exercise price of $0.08 and
an expiration date of March 31, 2016. Iroquois Capital Management L.L.C. ("Iroquois Capital") is the investment manager
of Iroquois Capital, LP ("ICLP").  Consequently, Iroquois Capital has voting control and investment discretion
over securities held by ICLP.  As managing members of Iroquois Capital, Joshua Silverman and Richard Abbe make voting and
investment decisions on behalf of Iroquois Capital in its capacity as investment manager to ICLP.  As a result of the foregoing,
Mr. Silverman and Mr. Abbe may be deemed to have beneficial ownership (as determined under Section 13(d) of the Securities Exchange
Act of 1934, as amended) of the securities held by ICLP.
(8)
Includes warrants to purchase 597,679 shares of common stock granted on June 15, 2009 with an exercise price of $0.76 and an
expiration date of December 15, 2014 and warrants to purchase 1,731,818 shares of common stock granted on March 31, 2008 with an
exercise price of $0.08 and an expiration date of March 31, 2016. Iroquois Capital Management L.L.C. ("Iroquois Capital")
is the investment manager of Iroquois Capital Opportunity Fund, LP ("ICOF").  Consequently, Iroquois Capital has
voting control and investment discretion over securities held by ICOF.  As managing members of Iroquois Capital, Joshua Silverman
and Richard Abbe make voting and investment decisions on behalf of Iroquois Capital in its capacity as investment manager to ICOF. 
As a result of the foregoing, Mr. Silverman and Mr. Abbe may be deemed to have beneficial ownership (as determined under Section
13(d) of the Securities Exchange Act of 1934, as amended) of the securities held by ICOF.
(9)
Includes warrants to purchase 1,196,593 shares of common stock granted on June 15, 2009 with an exercise price of $0.76 and
an expiration date of December 15, 2014, warrants to purchase 10,320,368 shares of common stock granted on March 31, 2008 offering
with an exercise price of $0.08 and an expiration date of March 31, 2016 and warrants to purchase 5,113,635 shares of common stock
granted on March 31, 2008 with an exercise price of $0.08 and an expiration date of September 30, 2016. Rockmore Capital, LLC ("Rockmore
Capital") serves as the investment manager to Rockmore Investment Master Fund Ltd ("Rockmore Master Fund") and
in such capacity has investment discretion to vote and dispose of these shares. Mr. Bruce T. Bernstein and Mr. Brian Daly, as officers
of Rockmore Capital, are responsible for the portfolio management decisions of Rockmore Master Fund and may be deemed to have beneficial
ownership (as determined under Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially
owned by Rockmore. Each of Rockmore Capital, Messrs. Bernstein and Daly, disclaims beneficial ownership of these shares.
(10)
Includes warrants to purchase 132,536 shares of common stock granted on August 6, 2009 with an exercise price of $0.79 and
an expiration date of February 4, 2015, warrants to purchase 16,875,000 shares of common stock acquired in the February 2012 offering
with an exercise price of $0.08 and an expiration date of January 31, 2017, 13,022,500 shares of common stock underlying 1,042
shares of convertible preferred stock having a face value of $1,000 each, also acquired in the February 2012 offering, and warrants
to purchase 5,750,000 shares of common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration
date of August 10, 2017 and 5,750,000 shares of common stock underlying 460 shares of convertible preferred stock having a face
value of $1,000 each, also acquired in the August 2012 offering, in addition to 1,001,748 shares of common stock. Konrad Ackerman
("Mr. Ackerman") is the director of Alpha Capital Anstalt ("Alpha") and in such capacity may be deemed
to have voting control and investment discretion over the securities held for the account of Alpha. As a result of the foregoing,
Mr. Ackerman may be deemed to have beneficial ownership (as determined under Section 13(d) of the Exchange Act) of any shares of
common stock of Generex deemed to be beneficially owned by Alpha.
19
(11)
Includes warrants to purchase 825,000 shares of common stock granted on September 14, 2009 with an exercise price of $1.00
and an expiration date of March 15, 2015 and warrants to purchase 1,875,000 shares of common stock acquired in the February 2012
offering with an exercise price of $0.08 and an expiration date of January 31, 2017 and warrants to purchase 1,250,000 shares of
common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 1,250,000
shares of common stock underlying 100 shares of convertible preferred stock having a face value of $1,000 each, also acquired in
the August 2012 offering, in addition to 1,410,217 shares of common stock. Mendy Sheen ("Mr. Sheen") is the president
of Ellis International Ltd. ("Ellis") and in such capacity may be deemed to have voting control and investment discretion
over the securities held for the account of Ellis. As a result of the foregoing, Mr. Sheen may be deemed to have beneficial ownership
(as determined under Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned
by Ellis.
(12)
Includes warrants to purchase 937,500 shares of common stock acquired in the February 2012 offering with an exercise price
of $0.08 an expiration date of January 31, 2017, 312,500 shares of common stock underlying 25 shares of convertible preferred stock
having a face value of $1,000 each, also acquired in the February 2012 offering and warrants to purchase 312,500 shares of common
stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 312,500 shares
of common stock underlying 25 shares of convertible preferred stock having a face value of $1,000 each, also acquired in the August
2012 offering, in addition to 145,833 shares of common stock. Arie Rabinowitz is the president of Momona Capital LLC. ("Momona")
and in such capacity may be deemed to have voting control and investment discretion over the securities held for the account of
Momona. As a result of the foregoing, Mr. Rabinowitz may be deemed to have beneficial ownership (as determined under Section 13(d)
of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Momona.
(13)
Includes warrants to purchase 937,500 shares of common stock acquired in the February 2012 offering with an exercise price
of $0.08 and an expiration date of January 31, 2017and 312,500 shares of common stock underlying 25 shares of convertible preferred
stock having a face value of $1,000 each, also acquired in the February 2012 offering and warrants to purchase 312,500 shares of
common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 312,500
shares of common stock underlying 25 shares of convertible preferred stock having a face value of $1,000 each, also acquired in
the August 2012 offering, in addition to 145,833 shares of common stock. Joseph Hammer is the president of Lane Ventures Inc. ("Lane")
and in such capacity may be deemed to have voting control and investment discretion over the securities held for the account of
Lane. As a result of the foregoing, Mr. Hammer may be deemed to have beneficial ownership (as determined under Section 13(d) of
the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Lane.
(14)
Includes warrants to purchase 937,500 shares of common stock acquired in the February 2012 offering with an exercise price
of $0.08 and an expiration date of January 31, 2017 and 375, 000 shares of common stock underlying 30 shares of convertible preferred
stock having a face value of $1,000 each, also acquired in the February 2012 offering and warrants to purchase 312,500 shares of
common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 312,500
shares of common stock underlying 25 shares of convertible preferred stock having a face value of $1,000 each, also acquired in
the August 2012 offering, in addition to 58,333 shares of common stock. Ari Kluger is the president of Osher Capital Partners LLC.
("Osher") and in such capacity may be deemed to have voting control and investment discretion over the securities held
for the account of Osher. As a result of the foregoing, Mr. Kluger may be deemed to have beneficial ownership (as determined under
Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Osher.
20
(15)
Includes warrants to purchase 624,999 shares of common stock granted on February 1, 2012 with an exercise price of $0.08 and
an expiration date of January 31, 2017 and 625,000 shares of common stock underlying 50 shares of convertible preferred stock having
a face value of $1,000 each, also acquired in the February 2012 offering, and warrants to purchase 187,500 shares of common stock
acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of August 10, 2017, 187,500 shares
of common stock underlying 15 shares of convertible preferred stock having a face value of $1,000 each, also acquired in the August
2012 offering, in addition to 54,968 shares of common stock. Asher Brand is the president of Assameka Capital Inc. ("Assameka")
and in such capacity may be deemed to have voting control and investment discretion over the securities held for the account of
Assameka. As a result of the foregoing, Mr. Brand may be deemed to have beneficial ownership (as determined under Section 13(d)
of the Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Assameka.
(16)
Includes warrants to purchase 1,041,665 shares of common stock granted on July 7, 2011 with an exercise price of $0.08 and
an expiration date of July 6, 2016. Eric Weisblum is the president of Whalehaven Opportunities Fund and in such capacity may be
deemed to have voting control and investment discretion over the securities held for the account of Whalehaven Opportunities Fund.
As a result of the foregoing, Mr. Weisblum may be deemed to have beneficial ownership (as determined under Section 13(d) of the
Exchange Act) of any shares of common stock of Generex deemed to be beneficially owned by Whalehaven Opportunities Fund.
(17)
Includes warrants to purchase 159,043 shares of common stock granted on August 6, 2009 with an exercise price of $0.79 an expiration
date of February 4, 2015, warrants to purchase 7,499,999 shares of common stock granted on January 25, 2011 with an exercise price
of $0.08 an expiration date of January 24, 2016, warrants to purchase 5,208,330 shares of common stock granted on July 7, 2011
with an exercise price of $0.08 and an expiration date of July 6, 2016, warrants to purchase 2,812,500 shares of common stock acquired
in the February 2012 offering with an exercise price of $0.08 and an expiration date of January 31, 2017 and warrants to purchase
1,250,000 shares of common stock acquired in the August 2012 offering with an exercise price of $0.08 and an expiration date of
August 10, 2017, 1,250,000 shares of common stock underlying 100 shares of convertible preferred stock having a face value of $1,000
each, also acquired in the August 2012 offering, in addition to 1,312,500 shares of common stock. Eric Weisblum is the president
of Whalehaven Capital Fund Limited and in such capacity may be deemed to have voting control and investment discretion over the
securities held for the account of Whalehaven Capital Fund Limited. As a result of the foregoing, Mr. Weisblum may be deemed to
have beneficial ownership (as determined under Section 13(d) of the Exchange Act) of any shares of common stock of Generex deemed
to be beneficially owned by Whalehaven Capital Fund Limited.
MARKET PRICE OF OUR COMMON STOCK
AND RELATED STOCKHOLDER MATTERS
Market Information
Our common stock is quoted on the OTC Bulletin Board under the
symbol "GNBT.OB." Our common stock was listed on the NASDAQ Capital Market (formerly the NASDAQ SmallCap Market) on June
5, 2003. On October 21, 2010, our common stock was delisted due to our failure to regain compliance with the $1.00 bid price requirement
for continued listing set forth in NASDAQ Listing Rule 5550(a)(2).  From May 5, 2000 to June 4, 2003, our common stock was
listed on the NASDAQ National Market. From February 1998 to May 2000, the "bid" and "asked" prices for our
common stock were quoted on the OTC Bulletin Board operated by the National Association of Securities Dealers. Prior to February
1998, there was no public market for our common stock.
The table below sets forth prices for our common stock for each
fiscal quarter in the prior two years ended July 31, 2012. The prices below reflect the high and low sales prices for our common
stock reported on the NASDAQ Capital Market for the first quarter of fiscal 2011, and the high and low bid information for the
second, third and fourth quarters of fiscal 2011 and the four quarters of fiscal 2012. The over-the-counter market quotations reflect
inter-dealer prices, without retail mark-up, mark-down or commissions and may not represent actual transactions.
21
Sales/Bid Prices
High
Low
Fiscal 2012
First Quarter
$
0.14
$
0.08
Second Quarter
$
0.28
$
0.08
Third Quarter
$
0.19
$
0.10
Fourth Quarter
$
0.12
$
0.09
Fiscal 2011
First Quarter
$
0.56
$
0.26
Second Quarter
$
0.35
$
0.24
Third Quarter
$
0.33
$
0.20
Fourth Quarter
$
0.25
$
0.12
As of September 6, 2012, the high and low bid price of our common
stock was $0.0705 per share.
Holders
As of September 6, 2012, there were approximately 594 holders
of record of our common stock.  Record holders do not include owners whose shares are held in street name by a broker
or other nominee.
Dividends
We have not paid dividends on our common stock in the past and
have no present intention of paying dividends on our common stock in the foreseeable future. The Certificate of Designations pertaining
to our Series B 9% Convertible Preferred Stock imposes certain restrictions on our ability to pay dividends on our common stock.
For information about these restrictions and the dividend that we paid on our Series A 9% Convertible Preferred Stock and will
pay on our Series B and Series C 9% Convertible Preferred Stock, see the discussion under the caption "Management's
Discussion and Analysis of Financial Condition and Results of Operations" under the heading "Financial Condition, Liquidity
and Resources" and the subheadings "Financing – July 2011", "Financing – February 2012"
and "Financing – August 2012" in this prospectus.
Penny Stock
The SEC has adopted rules that regulate broker-dealer practices
in connection with transactions in penny stocks. Our stock is currently a "penny stock." Penny stocks are generally
equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges. The
penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those rules, deliver
a standardized risk disclosure document prepared by the SEC, which: (a) contains a description of the nature and level of
risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's
or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to
such duties or other requirements of securities' laws; (c) contains a brief, clear, narrative description of a dealer
market, including bid and ask prices for penny stocks and significance of the spread between the bid and ask price; (d) contains
a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document
or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form as the SEC shall require
by rule or regulation. The broker-dealer also must provide to the customer, prior to effecting any transaction in a penny stock,
(a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the
transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to
the depth and liquidity of the market for such stock; and (d) monthly account statements showing the market value of each
penny stock held in the customer's account. In addition, the penny stock rules require that prior to a transaction in a penny
stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is
a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure
statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitably statement.  These
disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock.
22
Equity Compensation Plan Information
The following table sets forth information as of July 31, 2011
regarding all of our existing compensation plans and individual compensation arrangements pursuant to which equity securities are
authorized for issuance to employees, non-employee directors or non-employees (such as directors, consultants and advisors) in
exchange for consideration in the form of services:
Number of
securities to be
issued upon
exercise of
outstanding
options, warrants
and rights
Weighted-average
exercise price of
outstanding
options, warrants
and rights
Number of
securities
remaining
available for
future issuance
under equity
compensation
plans (excluding
securities reflected
in column (a))
Plan Category
(a)
(b)
(c)
Equity compensation plans approved by security holders
2000 Stock Option Plan
0
$
0
2,000,000
2001 Stock Option Plan
4,390,182
$
0.45
3,617,194
2006 Stock Plan
2,950,000
$
0.48
15,096,290
(1)
Total
7,340,182
$
0.46
20,713,484
Equity compensation plans not approved by security holders (2)
3,072,743
(2)
$
0.97
0
Total
10,412,925
$
0.61
20,713,484
(1)
Such shares are available for future issuance under the 2006 Stock Plan as options or restricted stock.
(2)
Includes 490,625 warrants issued to various consultants pursuant to the agreements with them, 2,092,118 warrants issued to
placement agents as commission, and 490,000 warrants issued to various employees as part of their compensation arrangements. Please
see Management Discussion and Analysis of Financial Condition and Results of Operations under the heading Financial Condition,
Liquidity and Resources, and Note 14 of the Consolidated Financial Statements in Part II of this prospectus for more information
on such warrants.
BUSINESS AND PROPERTY
Corporate History and Structure
We were incorporated in Delaware in September 1997 for the purpose
of acquiring Generex Pharmaceuticals Inc., a Canadian corporation formed in November 1995 to engage in pharmaceutical and biotechnological
research and development and other activities. Our acquisition of Generex Pharmaceuticals was completed in October 1997 in a transaction
in which the holders of all outstanding shares of Generex Pharmaceuticals exchanged their shares for shares of our common stock.
In January 1998, we participated in a "reverse acquisition"
with Green Mt. P. S., Inc., an inactive Idaho corporation formed in 1983. As a result of this transaction, our shareholders (the
former shareholders of Generex Pharmaceuticals) acquired a majority (approximately 90%) of the outstanding capital stock of Green
Mt., we became a wholly-owned subsidiary of Green Mt., Green Mt. changed its corporate name to Generex Biotechnology Corporation
("Generex Idaho"), and we changed our corporate name to GB Delaware, Inc. Because the reverse acquisition resulted in
our shareholders becoming the majority holders of Generex Idaho, we were treated as the acquiring corporation in the transaction
for accounting purposes. Thus, our historical financial statements, which essentially represented the historical financial statements
of Generex Pharmaceuticals, were deemed to be the historical financial statements of Generex Idaho.
23
In April 1999, we completed a reorganization in which we merged
with Generex Idaho. In this transaction, all outstanding shares of Generex Idaho were converted into our shares, Generex Idaho
ceased to exist as a separate entity, and we changed our corporate name back to "Generex Biotechnology Corporation."
This reorganization did not result in any material change in our historical financial statements or current financial reporting.
Subsidiaries
Following our reorganization in 1999, Generex Pharmaceuticals
Inc., which is incorporated in Ontario, Canada, remained as our wholly-owned subsidiary. All of our Canadian operations are performed
by Generex Pharmaceuticals. Generex Pharmaceuticals is the 100% owner of 1097346 Ontario Inc., which is also incorporated in Ontario,
Canada.
In August 2003, we acquired Antigen Express, Inc. Antigen is
engaged in the research and development of technologies and immunomedicines for the treatment of malignant, infectious, autoimmune
and allergic diseases. Antigen also does business under the names Generex Oncology and Generex Infectious Diseases.
We formed Generex (Bermuda), Inc., which is organized in Bermuda,
in January 2001 in connection with a joint venture with Elan International Services, Ltd., a wholly-owned subsidiary of Elan Corporation,
plc, to pursue the application of certain of our and Elan's drug delivery technologies, including our platform technology for the
buccal delivery of pharmaceutical products. In December 2004, we and Elan agreed to terminate the joint venture. Under the termination
agreement, we retained all of our intellectual property rights and obtained full ownership of Generex (Bermuda). Generex (Bermuda)
currently does not conduct any business activities.
We formed Generex Pharmaceuticals (USA) LLC, which is organized
in North Carolina, USA, in February 2006 as a wholly-owned subsidiary. Generex Pharmaceuticals (USA) LLC has not yet commenced
any business operations. We formed Generex Marketing & Distribution Inc., which is organized in Ontario, Canada, in September
2006. Generex Marketing & Distribution Inc. has not yet commenced any business operations. We formed Generex Biotechnology
BALTIC, a limited liability company, in the Republic of Latvia in June 2009. Generex Biotechnology BALTIC has not yet commenced
any business operations.
Overview of Business
We are engaged primarily in the research and development of
drug delivery systems and technologies. Our primary focus at the present time is our proprietary technology for the administration
of formulations of large molecule drugs to the oral (buccal) cavity using a hand-held aerosol applicator. Through our wholly-owned
subsidiary, Antigen, we have expanded our focus to include immunomedicines incorporating proprietary vaccine formulations.
We believe that our buccal delivery technology is a platform
technology that has application to many large molecule drugs and provides a convenient, non-invasive, accurate and cost-effective
way to administer such drugs. We have identified several large molecule drugs as possible candidates for development, including
estrogen, heparin, monoclonal antibodies, human growth hormone and fertility hormones, but to date have focused our development
efforts primarily on one pharmaceutical product, Generex Oral-lyn™, an insulin formulation administered as a fine spray into
the oral cavity using our proprietary hand-held aerosol spray applicator known as RapidMist™.
Our wholly-owned subsidiary, Antigen, concentrates on developing
proprietary vaccine formulations that work by stimulating the immune system to either attack offending agents (i.e., cancer cells,
bacteria, and viruses) or to stop attacking benign elements (i.e., self proteins and allergens). Our immunomedicine products are
based on two platform technologies and are in the early stages of development. We continue clinical development of Antigen's
synthetic peptide vaccines designed to stimulate a potent and specific immune response against tumors expressing the HER-2/neu
oncogene for patients with HER-2/neu positive breast cancer in a Phase II clinical trial and patients with prostate cancer and
against avian influenza in two Phase I clinical trials. We recently initiated an additional Phase I clinical trial in patients
with either breast or ovarian cancer.  The synthetic vaccine technology has certain advantages for pandemic or potentially
pandemic viruses, such as the H5N1 avian and H1N1 swine flu.  In addition to developing vaccines for pandemic influenza
viruses, we have vaccine development efforts underway for seasonal influenza virus, HIV, HPV, melanoma, ovarian cancer, allergy
and Type I diabetes mellitus. We have established collaborations with clinical investigators at academic centers to advance these
technologies.
24
To date, we have received regulatory approval in Ecuador, India
(subject to further study), Lebanon and Algeria for the commercial marketing and sale of Generex Oral-lyn™. We have previously
submitted regulatory dossiers for Generex Oral-lyn™ in a number of other countries, including Bangladesh, Kenya, Jordan and
Armenia. While we believe these countries will ultimately approve our product for commercial sale, we do not anticipate recognizing
revenues in any of these jurisdictions in the next twelve months. No dossier related activities or product shipments have taken
place during 2011, nor are any expected to these countries during the remainder of 2012.
In March 2008, we initiated Phase
III clinical trials for this product in the U.S. with the first patient screening for such trials at a clinical study site in Texas
in April 2008. Approximately 450 patients have been enrolled to date at approximately 70 clinical sites around the world, including
sites in the United States, Canada, Bulgaria, Poland, Romania, Russia, Ukraine and Ecuador.
The final subjects completed
the trial in August 2011. After appropriate validation, the data from approximately 450 patients was tabulated, reviewed and analyzed.
Those results from the Phase III trial along with a comprehensive review and supplemental analyses of approximately 40 prior Oral-lyn
clinical studies were compiled and submitted to the FDA in late December 2011 in a comprehensive package including a composite
metanalysis of all safety data. Following notification of the completion of their review, we will schedule a meeting with the FDA
to arrive at a consensus for the pathway for regulatory approval, including any additional clinical or pharmacological studies
that might be required to support regulatory approval or enhance marketing success.
In November 2008 we, together with our marketing partner Shreya
Life Sciences Pvt. Ltd., officially launched Generex Oral-lyn™ in India under marketing name of Oral Recosulin™. Each
package of Oral Recosulin™ contains two canisters of our product along with one actuator. The product received regulatory
price approval in India in January 2009. Per the requirements of the regulatory approval in India, an in-country clinical study
must be completed in India with Oral Recosulin™ before commercial sales can commence. The study is currently under way, and,
when concluded, the outcomes will be submitted to the Indian regulatory agency for approval. Completion of the study and regulatory
agency approval is not currently expected until at least the third quarter of calendar year 2012, after which time commercial sales
can commence. We have not recognized any revenue from the Indian market to date.
In December 2008, we, together with our marketing partner Benta
S.A., received an approval to market Generex Oral-lyn™ in Lebanon. The official product launch in Lebanon took place in May
2009. In May 2009, the Algerian health authorities granted us permission to import and sell Generex Oral-lyn™ for the treatment
of diabetes in Algeria. The official product launch in Algeria took place in October 2009. To date, we have not recognized any
revenue from the sales of Generex Oral-lyn™ in Algeria and very minimal revenues in Lebanon. We do not anticipate significant
revenues (if any) to be recognized from these jurisdictions in the next twelve months.
Using our buccal delivery technology, we have also launched
a consumer/over-the-counter glucose spray called Glucose RapidSpray™. We do not plan to expend significant resources to market
this product in the future. Revenues will not likely be significant unless we engage a major marketing partner to manufacture,
distribute, market and sell this product. In fiscal 2011 and in the first three quarters of fiscal 2012, we received modest revenues
from sales of our commercially available consumer/over-the-counter products. We are currently seeking a global purchaser or licensee
for the Glucose Rapid Spray Product.
In October 2008, we announced the enrollment of subjects in
our bioequivalence clinical trial of MetControl™, our proprietary Metformin medicinal chewing gum product, conducted in the
United States. The protocol for the study is an open-label, two-treatment, two-period, randomized, crossover study comparing MetControl™
and immediate release Metformin™ tablets in healthy volunteers. The study results that we received and analyzed in December
2008 demonstrated bioequivalence. We have, however, determined that the economics of proceeding with this product do not warrant
the expenditure of further resources. We have not expended resources to further develop this product during the fiscal years ended
July 31, 2011 and 2010 or in the first three quarters of fiscal 2012 and do not currently plan to expend any further resources
on this product.
We face competition from other providers of alternate forms
of insulin. Some of our most significant competitors, Pfizer, Eli Lilly, and Novo Nordisk, have announced that they will discontinue
development and/or sale of their inhalable forms of insulin. Generex Oral-lyn™ is not an inhaled insulin; rather, it is a
buccally absorbed formulation with no residual pulmonary deposition. We believe that our buccal delivery technology offers several
advantages, including the ease of use, portability, avoidance of pulmonary inhalation and safety profile. Furthermore, insulin
administered through the Generex Oral-lyn™ RapidMist™ technology is absorbed directly into the blood stream and not
only acts rapidly, but returns to baseline quickly, thereby minimizing the chance of developing hypoglycemia.
25
Large pharmaceutical companies, such as Merck & Co., Inc.,
GlaxoSmithKline PLC, Novartis, Inc., MedImmune Inc. (a subsidiary of Astra-Zeneca, Inc.) and others, also compete against us in
the oncology, immunomedicine and vaccine markets. These companies have competing experience and expertise in securing government
contracts and grants to support research and development efforts, conducting testing and clinical trials, obtaining regulatory
approvals to market products, as well as manufacturing and marketing approved products. As such, they are also considered significant
competitors in these fields of pharmaceutical products and therapies. There are also many smaller companies which are pursuing
similar technologies in these fields who are considered to be competitors of Generex.
We are a development stage company. From inception through April
30, 2012, we have received only limited revenues from operations. In the nine months ended April 30, 2012, we generated $21,901
in revenue and in the fiscal years ended July 31, 2011, 2010 and 2009, we generated $291,628, $1,172,611 and $1,118,509 in revenue,
respectively. The revenue in fiscal 2009 included $500,000 relating to an upfront license fee for the signing of a license and
distribution agreement for Generex Oral-lyn™, while the remainder of the revenue in each of the fiscal periods pertained
primarily to the sale of our consumer/over-the-counter products. These numbers do not reflect deferred sales to customers during
the respective periods with the right of return.
We operate in only one segment: the research and development
of drug delivery systems and technologies for metabolic and immunological diseases.
Our Business Strategy
Our business model focuses on the research and development of
diabetes, oncology and infectious diseases drugs.  This business model leverages the expertise of our management team,
scientific advisory board and the history of our company. Our goal is to develop next generation drugs for diabetes, oncology and
infectious disease by leveraging our buccal delivery technology to administer large and small molecule drugs, including insulin,
and proprietary vaccine formulations based upon two Antigen platform technologies to provide innovative biopharmaceutical products
that offer the potential for superior efficacy and safety over existing products.  To achieve these goals, the key elements
of our strategy include:
·
Completing current and planned Phase III clinical trials of Generex Oral-lyn™, as well as any additional studies or trials which may be required in order to obtain regulatory approval in major and other jurisdictions;
·
Developing a proprietary portfolio of products for the treatment of diabetes through strategic partnerships licensing and acquisitions;
·
A keystone of Generex's strategy, announced at the annual meeting of stockholders in June 2011 is the proposed spin-out of Antigen Express as a separate company from Generex.  Management believes that this action would allow Antigen to establish value for its immunotherapeutic vaccine technologies separate from the Generex buccal drug delivery platform technologies.  The spin-out would be accomplished by the issuance of one or more dividends of Antigen Express stock to Generex stockholders;
·
Completing the ongoing Phase II clinical trials of Antigen's synthetic peptide vaccines designed to stimulate a potent and specific immune response against tumors expressing the HER-2/neu oncogene for patients with HER-2/neu positive breast cancer, conducting a Phase II prostate cancer trial and a Phase I trial in patients with breast or ovarian cancer;
·
Conducting  further clinical trials of Antigen's synthetic peptide vaccines against avian (H5N1) influenza and initiating clinical trial of such vaccines against swine (H1N1) influenza; and
·
Exploring other applications for our RapidMist platform buccal technology; morphine, LWH, fentanyl (all of which have undergone Phase I clinical studies), as well as cell therapy for late stage diabetes.
26
Buccal Delivery Technology and Products
Our buccal delivery technology involves the preparation of proprietary
formulations in which an active pharmaceutical agent is placed in a solution with a combination of absorption enhancers and other
excipients classified "generally recognized as safe" ("GRAS") by the United States Food and Drug Administration
(the "FDA") when used in accordance with specified quantities and other limitations. The resulting formulations are aerosolized
with a pharmaceutical grade chemical propellant and are administered to patients using our proprietary RapidMist™ brand metered
dose inhaler. The device is a small, lightweight, hand-held, easy-to-use aerosol applicator comprised of a container for the formulation,
a metered dose valve, an actuator and dust cap. Using the device, patients self-administer the formulations by spraying them into
the mouth. The device contains multiple applications, the number being dependent, among other things, on the concentration of the
formulation. Absorption of the pharmaceutical agent occurs in the buccal cavity, principally through the inner cheek walls. In
clinical studies of our flagship oral insulin product Generex Oral-lyn™, insulin absorption in the buccal cavity has been
shown to be efficacious and safe.
Buccal Insulin Product – Generex Oral-Lyn™
Insulin is a hormone that is naturally secreted by the pancreas
to regulate the level of glucose, a type of sugar, in the bloodstream. The term "diabetes" refers to a group of disorders
that are characterized by the inability of the body to properly regulate blood glucose levels. When glucose is abundant, it is
converted into fat and stored for use when food is not available. When glucose is not available from food, these fats are broken
down into free fatty acids that stimulate glucose production. Insulin acts by stimulating the use of glucose as fuel and by inhibiting
the production of glucose. In a healthy individual, a balance is maintained between insulin secretion and glucose metabolism.
There are two major types of diabetes. Type 1 diabetes (juvenile
onset diabetes or insulin dependent diabetes) refers to the condition where the pancreas produces little or no insulin. Type 1
diabetes accounts for 5-10 percent of diabetes cases. It often occurs in children and young adults. Type 1 diabetics must take
daily insulin injections, typically three to five times per day, to regulate blood glucose levels. Generex Oral-lyn™ provides
a needle-free means of delivering insulin for these patients.
In Type 2 diabetes (adult onset or non-insulin dependent diabetes
mellitus), the body does not produce enough insulin, or cannot properly use the insulin produced. Type 2 diabetes is the most common
form of the disease and accounts for 90-95 percent of diabetes cases. In addition to insulin therapy, Type 2 diabetics may take
oral drugs that stimulate the production of insulin by the pancreas or that help the body to more effectively use insulin. Generex
Oral-lyn™ provides a simple means of delivering needed insulin to this major cohort of individuals.
Current studies in diabetes have identified a new condition
closely related to diabetes, called impaired glucose tolerance (IGT). People with IGT do not usually meet the criteria for the
diagnosis of diabetes mellitus. They have normal fasting glucose levels but two hours after a meal their blood glucose level is
far above normal. With the increase use of glucose tolerance tests the number of people diagnosed with this pre-diabetic condition
is expanding exponentially. Per the 2011 Diabetes Atlas, published by the International Diabetes Federation (IDF), approximately
26 million people in the United States and 280 million people world-wide suffer from IGT. Generex Oral-lyn™ is an ideal solution
to providing meal-time insulin to the millions of IGT sufferers. This therapeutic area is currently being investigated.
If not treated, diabetes can lead to blindness, kidney disease,
nerve disease, amputations, heart disease and stroke. Each year, between 12,000 and 24,000 people suffer vision impairment or complete
blindness because of diabetes. Diabetes is also the leading cause of end-stage renal disease (kidney failure), accounting for about
40 percent of new cases.
In addition, about 60-70 percent of people with diabetes have
mild to severe forms of diabetic nerve damage, which, in severe forms, can lead to lower limb amputations. Diabetics are also two
to four times more likely to have heart disease, which is present in 75 percent of diabetes-related deaths, and are two to four
times more likely to suffer a stroke.
There is no known cure for diabetes. The IDF estimates that
there are currently almost 366 million diabetics worldwide per their 2011 Diabetes Atlas and is expected to affect over 552 million
people by the year 2030. There are estimated to be over 37 million people suffering from diabetes in North America alone and diabetes
is the second largest cause of death by disease in North America.
27
A substantial number of large molecule drugs (
i.e.
,
drugs composed of molecules with a high molecular weight and fairly complex and large spatial orientation) have been approved for
sale in the United States or are presently undergoing clinical trials as part of the process to obtain such approval, including
various proteins, peptides, monoclonal antibodies, hormones and vaccines. Unlike small molecule drugs, which generally can be administered
by various methods, large molecule drugs historically have been administered predominately by injection. The principal reasons
for this have been the vulnerability of large molecule drugs to digestion and the relatively large size of the molecule itself,
which makes absorption into the blood stream through the skin inefficient or ineffective. The RapidMist technology provides a recognized
and proved drug delivery system for the delivery of large molecules directly into the blood stream with the attendant advantages.
In May 2005, we received approval from the Ecuadorian Ministry
of Public Health for the commercial marketing and sale of Generex Oral-lyn™ for treatment of Type 1 and Type 2 diabetes.
We have successfully completed the delivery and installation of a turnkey Generex Oral-lyn™ production operation at the facilities
of PharmaBrand in Quito, Ecuador. The first commercial production run of Generex Oral-lyn™ in Ecuador was completed in May,
2006. While Ecuador production capability may be sufficient to meet the needs of South America, it is believed to be insufficient
for worldwide production for future commercial sales and clinical trials.
On the basis of the test results in Ecuador and other pre-clinical
data, we made an IND submission to Health Canada (Canada's equivalent to the FDA) in July 1998, and received permission from the
Canadian regulators to proceed with clinical trials in September 1998. We filed an Investigational New Drug application with the
FDA in October 1998, and received FDA approval to proceed with human trials in November 1998. Annual reports have been filed with
the FDA each year since that time.
We began our clinical trial programs in Canada and the United
States in January 1999. Between January 1999 and September 2000, we conducted clinical trials of our insulin formulation involving
approximately 200 subjects with Type 1 and Type 2 diabetes and healthy volunteers. The study protocols in most trials involved
administration of two different doses of our insulin formulation following either a liquid Sustacal meal or a standard meal challenge.
The objective of these studies was to evaluate our insulin formulation's efficacy in controlling post-prandial (meal related) glucose
levels. These trials demonstrated that our insulin formulation controlled post-prandial hyperglycemia in a manner comparable to
injected insulin. In April 2003, a Phase II-B clinical trial protocol was approved in Canada. In September 2006, a Clinical Trial
Application relating to our Generex Oral-lyn™ protocol for late-stage trials was approved by Health Canada. The FDA's
review period for the protocol lapsed without objection in July 2007.
In late April 2008, we initiated Phase III clinical trials in
North America for Generex Oral-lyn™ with the first subject screening in Texas. Other clinical sites participating in the
study are located in the United States (Texas, Maryland, Minnesota and California), Canada (Alberta), European Union (Romania,
Poland and Bulgaria), Eastern Europe (Russia and Ukraine),) and Ecuador. At present, approximately 450 subjects have been enrolled
in the program at approximately 70 clinical sites around the world. The Phase III protocol called for a six-month trial with a
six-month follow-up with the primary objective to compare the efficacy of Generex Oral-lyn™ and the RapidMist™ Diabetes
Management System with that of standard regular injectable human insulin therapy as measured by HbA1c, in patients with Type-1
diabetes mellitus. The final subjects completed the trial in August 2011. After appropriate validation, the data from approximately
450 patients was tabulated, reviewed and analyzed. Those results from the Phase III trial along with a comprehensive review and
supplemental analyses of approximately 40 prior Oral-lyn clinical studies were compiled and submitted to the FDA in late December
2011 in a comprehensive package including a composite metanalysis of all safety data. Following notification of the completion
of their review, we will schedule a meeting with the FDA to arrive at a consensus for the pathway for regulatory approval, including
any additional clinical or pharmacological studies that might be required to support regulatory approval or enhance marketing success.
We engaged a global clinical research organization to provide
many study related site services, including initiation, communication with sites, project management and documentation; a global
central lab service company to arrange for the logistics of kits and blood samples shipment and testing; an Internet-based clinical
electronic data management company to assist us with global data entry, project management and data storage/processing of the Phase
III clinical trial and regulatory processes. We contracted with our third-party manufacturers to produce sufficient quantities
of the RapidMist™ components, the insulin, and the raw material excipients required for the production of clinical trial
batches of Generex Oral-lyn™.
28
As described above, we have obtained regulatory approval for
the commercial marketing and sale of Generex Oral-lyn™ in Ecuador, India (subject to further study), Lebanon and Algeria.
Consumer/Over-the-Counter Glucose Product Line
Using our proprietary buccal delivery technology, we have developed
several formulations of glucose sprays. In the first quarter of fiscal year 2007, we introduced, Glucose RapidSpray™. This
product uses our proprietary RapidMist™ brand metered dose inhaler platform technology to provide an alternative for people
who require or want additional glucose in their diet and delivers a fat-free, low-calorie glucose formulation directly into the
mouth. In fiscal 2011, 2010 and 2009, we received modest revenues from sales of our commercially available consumer/over-the-counter
products, but do not intend to expend significant resources to market these products in 2012 or in future years. Revenues will
not likely be significant, unless we engage a major marketing partner to manufacture, distribute, market and sell this product.
We had entered into a preliminary marketing and distribution agreement with Merck, S.A. de C.V. in Mexico for the distribution
of, Glucose RapidSpray™ brand formulated glucose spray product. Merck was considering the potential to produce, market, and
distribute the product in Mexico as Diabion® GlucoShot®. Merck has since decided not to pursue this opportunity. To date,
we have received modest revenues from sales of these products which were available in retail stores and independent pharmacies
in the United States and Canada. We are currently seeking a global purchaser or licensee for the Glucose Rapid Spray Product who
is also capable of manufacturing and distributing the product on a global scale.
Other Potential Buccal Products
We have had discussions regarding possible research collaborations
with various pharmaceutical companies concerning use of our large molecule drug delivery technology with other compounds, including
monoclonal antibodies, human growth hormone, fertility hormones, estrogen and heparin, and a number of vaccines. We are currently
pursuing development opportunities to complement our insulin therapy.
Amarantus
BioSciences and Generex Biotechnology announced in June 2011 that they are working towards establishing a collaboration on cell
therapy for late stage diabetes
, but as of the date of this report, no definitive agreements have been signed.
In October 2008, we announced the enrollment of subjects in
our bioequivalence clinical trial of MetControl™, our proprietary Metformin medicinal chewing gum product, conducted in the
United States. The protocol for the study is an open-label, two-treatment, two-period, randomized, crossover study comparing MetControl™
and immediate release Metformin™ tablets in healthy volunteers. The study results that we received and analyzed in December
2008 demonstrated bioequivalence. We have, however, determined that the economics of proceeding with this product do not warrant
the expenditure of further resources. We have not expended resources to further develop this product during the fiscal years ended
July 31, 2011 and 2010 or in the first three quarters of fiscal 2012 and do not currently plan to expend any further resources
on this product.
Immunomedicine Technology and Products
Our wholly-owned subsidiary Antigen Express is developing proprietary
vaccine formulations based upon two platform technologies that were discovered by its founder, the Ii-Key hybrid peptides and Ii-Suppression.
These technologies are applicable for either antigen-specific immune stimulation or suppression, depending upon the dosing and
formulation of its products. Using active stimulation, we are focusing on major diseases such as breast, prostate and ovarian cancer,
melanoma, influenza (including H5N1 avian and H1N1 swine flu) and HIV. Autoimmune diseases such as diabetes and multiple sclerosis
are the focus of our antigen-specific immune suppression work.
Antigen's immunotherapeutic vaccine AE37 is currently
in Phase II clinical trials for patients with HER-2/neu positive breast cancer. The trial is being conducted with the United States
Military Cancer Institute's (USMCI) Clinical Trials Group and will examine the rate of relapse in patients with node-positive or
high-risk node-negative breast cancer after two years. The study is randomized and will compare patients treated with AE37 plus
the adjuvant GM-CSF versus GM-CSF alone. The Phase II trial follows a Phase I trial that demonstrated safety, tolerability, and
immune stimulation of the AE37 vaccine in breast cancer patients.
29
Based on positive results in trials of the AE37 vaccine in breast
cancer patients, we entered into an agreement in August 2006 with the Euroclinic, a private center in Athens, Greece, to commence
clinical trials with the same compound as an immunotherapeutic vaccine for prostate cancer. A Phase I trial involving 29 patients
was completed in August 2009, which similarly showed safety, tolerability and induction of a specific immune response. Agreements,
as well as a protocol, are in place for initiation of a Phase II clinical trial once additional funding is available.
The same technology used to enhance immunogenicity is being
applied in the development of a synthetic peptide vaccine for H5N1 avian influenza and the 2009 H1N1 swine flu. In April 2007,
a Phase I clinical trial of Antigen's proprietary peptides derived from the hemagglutinin protein of the H5N1 avian influenza
virus was initiated in healthy volunteers in the Lebanese-Canadian Hospital in Beirut, Lebanon. We have completed the first portion
of the Phase I trial. Modified peptide vaccines for avian influenza offer several advantages over traditional egg-based or cell-culture
based vaccines. Modified peptide vaccines can be manufactured by an entirely synthetic process which reduces cost and increases
both the speed and quantity of vaccine relative to egg- or cell-culture based vaccines. Another advantage is that the peptides
are derived from regions of the virus that are similar enough in all H5N1 and H1N1 virus strains such that they would not have
to be newly designed for the specific strain to emerge in a pandemic.
A Physician's Investigational New Drug ("IND")
application for the Phase I and Phase II trials in patients with stage II HER-2/neu positive breast cancer has been filed with
the FDA. The Phase I trial was completed at the Walter Reed Army Medical Center in Washington, D.C., and the Phase II trial is
taking place at 13 sites, including 11 in the U.S., one in Germany and one in Greece. A Physician's Investigational New Drug
application for a Phase I trial in patients with breast or ovarian cancer also has been filed with the FDA and this Phase I trial
is being conducted in Dallas, Texas at the Mary Crowley Cancer Center. Applications were filed and approvals obtained for a Phase
I prostate cancer trial using AE37 in Athens, Greece from the Hellenic Organization of Drugs, and this Phase I trial was completed
in August 2009. The Ministry of Health in Lebanon gave approval for Phase I trial of our experimental H5N1 prophylactic vaccine
in Beirut, Lebanon following submission of an application. All other immunomedicine products are in the pre-clinical stage of development.
Government Regulation
Our research and development activities and the manufacturing
and marketing of our pharmaceutical products are subject to extensive regulation by the FDA in the United States, Health Canada
in Canada and comparable designated regulatory authorities in other countries. Among other things, extensive regulations require
us to satisfy numerous conditions before we can bring products to market. While these regulations apply to all competitors in our
industry, having a technology that is unique and novel extends the requisite review period by the various divisions within the
FDA and other regulators. Also, other companies in our industry are not limited primarily to products which still need to be approved
by government regulators, as we are now.
If requisite regulatory approvals are not obtained and maintained,
our business will be substantially harmed. In many cases, we expect that extant and prospective development partners will participate
in the regulatory approval process. The following discussion summarizes the principal features of food and drug regulation in the
United States and other countries as they affect our business.
United States
All aspects of our research, development and foreseeable commercial
activities relating to pharmaceutical products are subject to extensive regulation by the FDA and other regulatory authorities
in the United States. United States federal and state statutes and regulations govern, among other things, the testing, manufacturing,
safety, efficacy, labeling, storage, record keeping, approval, advertising and promotion of pharmaceutical products. The regulatory
approval process, including clinical trials, usually takes several years and requires the expenditure of substantial resources.
If regulatory approval of a product is granted, the approval may include significant limitations on the uses for which the product
may be marketed.
30
The steps required before a pharmaceutical product may be marketed
in the United States include:
·
Conducting appropriate pre-clinical laboratory evaluations, including animal studies, in compliance with the FDA's Good
Laboratory Practice ("GLP") requirements, to assess the potential safety and efficacy of the product, and to characterize
and document the product's chemistry, manufacturing controls, formulation and stability;
·
Submitting the results of these evaluations and tests to the FDA, along with manufacturing information, analytical data, and
protocols for clinical studies, in an IND Application, and receiving approval from the FDA that the clinical studies proposed under
the IND are allowed to proceed;
·
Obtaining approval of Institutional Review Boards ("IRBs") to administer the product to humans in clinical studies;
conducting adequate and well-controlled human clinical trials in compliance with the FDA's Good Clinical Practice ("GCP")
requirements that establish the safety and efficacy of the product candidate for the intended use;
·
Developing manufacturing processes which conform to the FDA's current Good Manufacturing Practices, or cGMPs, as confirmed
by FDA inspection;
·
Submitting to the FDA the results of pre-clinical studies, clinical studies, and adequate data on chemistry, manufacturing
and control information to ensure reproducible product quality batch after batch, in an NDA or Biologics License Application ("BLA");
and
·
Obtaining FDA approval of the NDA, including inspection and approval of the product manufacturing facility as compliant with
cGMP requirements, prior to any commercial sale or shipment of the pharmaceutical agent.
Quality and pre-clinical tests and studies include: laboratory
evaluation of Drug Substance and Drug Product chemistry, formulation/manufacturing, and stability profiling, as well as a large
number of animal studies to assess the potential safety and efficacy of each product. Typically, the pre-clinical studies consist
of the following:
Pharmacology
·
Primary
and Secondary Pharmacodynamics
·
Safety
Pharmacology
·
Other
Pharmacodynamics
Pharmacokinetics ("PK")
·
Single
and Multiple Dose Kinetics
·
Tissue
Distribution
·
Metabolism
·
PK
Drug Interactions
·
Other
PK studies
Toxicology
·
Single
and Multiple Dose Toxicity
·
Genotoxicity
·
Carcinogenicity
·
Reproduction
Toxicity
·
Other
Toxicity
31
The results of the quality and pre-clinical tests/studies, in
addition to any non-clinical pharmacology, are submitted to the FDA along with the initial clinical study protocol (see descriptive
of process below) as part of the initial IND and are reviewed by the FDA before the commencement of human clinical trials. Unless
the FDA objects to it, the IND becomes effective 30 days following its receipt by the FDA. The FDA reviews all protocols, protocol
amendments, adverse event reports, study reports, and annual reports in connection with a new pharmacological product.
The IND for our oral insulin formulation became effective in
November 1998. Amendments are also subsequently filed as new Clinical Studies and their corresponding Study Protocols are proposed.
In July 2007, we received a no objection clearance to initiate our Phase III study protocol for our oral insulin product. The Physician's
Investigational New Drug Application for the Phase 1 and Phase II trial of AE37, Antigen's synthetic peptide vaccine designed
to stimulate a potent and specific immune response against tumors expressing the HER-2/neu oncogene, in patients with stage II
HER-2/neu positive breast cancer became effective in March 2006.
Clinical trials involve the administration of a new drug to
humans under the supervision of qualified investigators. The protocols for the trials must be submitted to the FDA as part of the
IND. Also, each clinical trial must be approved and conducted under the auspices of an IRB, which considers, among other things,
ethical factors, the safety of human subjects, and the possible liability of the institution conducting the clinical trials.
Clinical trials are typically conducted in three sequential
phases (Phase I, Phase II, and Phase III), but the phases may overlap. Phase I clinical trials test the drug on healthy human subjects
for safety and other aspects, but usually not effectiveness. Phase II clinical trials are conducted in a limited patient population
to gather evidence about the efficacy of the drug for specific purposes, to determine dosage tolerance and optimal dosages, and
to identify possible adverse effects and safety risks. When a compound has shown evidence of efficacy and acceptable safety in
Phase II evaluations, Phase III clinical trials are undertaken to evaluate and confirm clinical efficacy and to test for safety
in an expanded patient population at clinical trial sites in different geographical locations.  The FDA and other regulatory
authorities require that the safety and efficacy of therapeutic product candidates be supported through at least two adequate and
well-controlled Phase III clinical trials (known as "Pivotal Trials").  The successful completion of Phase III
clinical trials is a mandatory step in the approval process for the manufacturing, marketing, and sale of products.
In the United States, the results of quality, pre-clinical studies
and clinical trials, if successful, are submitted to the FDA in an NDA to seek approval to market and commercialize the drug product
for a specified use. The NDA is far more specific than the IND and must also include proposed labeling and detailed technical sections
based on the data collected. The FDA is governed by the Prescription Drug User Fee Act ("PDUFA") regarding response
time to the application, which is generally 12 months (and shorter for a priority application). It may deny a NDA if it believes
that applicable regulatory criteria are not satisfied. The FDA also may require additional clarifications on the existing application
or even additional testing for safety and efficacy of the drug. We cannot be sure that any of our proposed products will receive
FDA approval. The multi-tiered approval process means that our products could fail to advance to subsequent steps without the requisite
data, studies, and FDA approval along the way. Even if approved by the FDA, our products and the facilities used to manufacture
our products will remain subject to review and periodic inspection by the FDA.
To supply drug products for use in the United States, foreign
and domestic manufacturing facilities must be registered with, and approved by, the FDA. Manufacturing facilities must also comply
with the FDA's cGMPs, and such facilities are subject to periodic inspection by the FDA. Products manufactured outside the United
States are inspected by regulatory authorities in those countries under agreements with the FDA.  To comply with cGMPs, manufacturers
must expend substantial funds, time and effort in the area of production and quality control.  The FDA stringently applies
its regulatory standards for manufacturing. Discovery of previously unknown problems with respect to a product, manufacturer or
facility may result in consequences with commercial significance. These include restrictions on the product, manufacturer or facility,
suspensions of regulatory approvals, operating restrictions, delays in obtaining new product approvals, withdrawals of the product
from the market, product recalls, fines, injunctions and criminal prosecution.
One final hurdle that is closely associated with the cGMP inspections
is the pre-approval inspection that the FDA carries out prior to the issuance of a marketing license. FDA inspectors combine cGMP
compliance with a review of research and development documents that were used in the formal NDA. A close inspection of historic
data is reviewed to confirm data and to demonstrate that a company has carried out the activities as presented in the NDA. This
is generally a long inspection and requires a team of individuals from the company to "host" the FDA inspector(s).
32
Foreign Countries
Before we are permitted to market any of our products outside
of the United States, those products will be subject to regulatory approval by foreign government agencies similar to the FDA. 
These requirements vary widely from country to country. Generally, however, no action can be taken to market any drug product in
a country until an appropriate application has been submitted by a sponsor and approved by the regulatory authorities in that country.
Again, similar to the FDA, each country will mandate a specific financial consideration for the Marketing Application dossiers
being submitted. Although an important consideration, FDA approval does not assure approval by other regulatory authorities. The
current approval process varies from country to country, and the time spent in gaining approval varies from that required for FDA
approval. The Canadian regulatory process is substantially similar to that of the United States. To date, we have received the
following foreign regulatory approval for our product candidates:
·
We obtained regulatory approval to begin clinical trials of our oral insulin formulation in Canada in November 1998. In April
2003, we received approval of an Oral-lyn™ Phase II-B clinical trial protocol in Canada. In September 2006 Health Canada
approved our Clinical Trial Application in respect of our proposed Generex Oral-lyn™ protocol for late-stage trials; we expect
to use the data collected from these trials in the New Drug Submission that will be prepared concurrently with the progression
of the late-stage trials.
·
We obtained regulatory approval in Canada to begin clinical trials of our buccal morphine product in March 2002 and our fentanyl
product in October 2002.
·
In May 2005, we received approval from the Ecuadorian Ministry of Public Health for the commercial marketing and sale of Generex
Oral-lyn™ for treatment of Type 1 and Type 2 diabetes. To date we have not recognized any revenue from the sale of Generex
Oral-lyn™ in Ecuador and we are not currently expending any resources to further commercialization in this country.
·
In November 2007, we obtained approval for the importation and commercial marketing and sale in India of Generex Oral-lyn™
under the marketing name of Oral Recosulin
™
from the Central Drugs Standard Control Organization
(CDSCO), Directorate General of Health Services, Government of India, which is responsible for authorizing marketing approval of
all new pharmaceutical products in India. Per the requirements of the approval, an in-country clinical study must be completed
in India with Oral Recosulin™ before commercial sales can commence. That study is currently underway and completion is expected
in the second half of 2012.
·
Applications were filed and approvals obtained in May 2007 for a Phase I prostate cancer trial using AE37 in Athens, Greece
from the Hellenic Organization of Drugs. This Phase I trial was completed in August 2009.
·
The Ministry of Health in Lebanon gave approval for the Phase I trial of our experimental H5N1 prophylactic vaccine in Beirut,
Lebanon following submission of an application.
In December 2008, we, together with our marketing partner
Benta SA., received an approval to market Generex Oral-lyn™ in Lebanon. The official product launch in Lebanon took place
in May 2009.
We are not currently expending any resources to further commercialization in this country.
·
In May 2009, the Algerian health authorities granted us permission to import and sell Generex Oral-lyn™
for the treatment of diabetes in Algeria.
To date we have not recognized any revenue from the sale of Generex Oral-lyn™
in Algeria and we are not currently expending any resources to further commercialization in this country.
33
Marketing and Distribution
We market our products through collaborative arrangements with
companies that have well-established pharmaceutical marketing and distribution capabilities, including expertise in the regulatory
approval processes in their respective jurisdictions.
We have entered into licensing and distribution agreements with
a number of multinational distributors to assist us with the process of gaining regulatory approval for the registration, marketing,
distribution, and sale of Generex Oral-lyn™ in countries throughout the world, including:
·
Shreya Life Sciences Pvt. Ltd. for India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka, and Myanmar;
·
Adcock Ingram Limited and Adcock Ingram Healthcare (Pty) Ltd. for South Africa, Lesotho, Swaziland, Botswana; Namibia, Mozambique
and Zimbabwe;
·
E&V Alca Distribution Corp. for Albania, Montenegro, and Kosovo;
·
Medrey S.A.L. (formerly MedGen Corp.) and Benta S.A.L. for Lebanon;
·
SciGen, Ltd. for China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam;
·
Pharmaris Perus S.A.C. for Peru;
·
MediPharma SA for Argentina;
·
PMG S.A. for Chile;
·
Dong Sung Pharm. Co. Ltd. for South Korea; and
·
Benta S.A. for Lebanon.
Under these licensing and distribution agreements excluding
the one with Dong Sung Pharm Co., we will not receive an upfront license fee, but the distributor will bear any and all costs associated
with the procurement of governmental approvals for the sale of Generex Oral-Lyn™, including any clinical and regulatory costs.
We possess the worldwide marketing rights to our oral insulin product. We do not currently plan to expend significant resources
on additional clinical trials or to further the commercialization of Generex Oral-lyn™ until after such time that we secure
additional financing.
Manufacturing
In December 2000, we completed a pilot manufacturing facility
for Generex Oral-lyn™ in Toronto, Canada in the same commercial complex in which our laboratories were located. In the first
quarter of fiscal year 2006, we initiated a scale-up commercial production run of several thousand canisters of Generex Oral-lyn™
at this facility. We have sold the property which housed the manufacturing and laboratory facility in July 2012 and expect to engage
contract manufacturers in order to manufacture any product in significant quantities for any future commercial sales and clinical
trials.
In March 2006, we successfully completed the delivery and installation
of a turnkey Generex Oral-lyn™ filling operation at the facilities of PharmaBrand, in Quito, Ecuador for the purposes of
commercial supply and sales in Ecuador and other countries that can procure registrations and import licenses. We anticipate that
the capacity of this facility will be sufficient to support commercial sales in Ecuador and other countries in Latin America, it
is believed to be insufficient for worldwide production for future commercial sales and clinical trials.
In anticipation of undertaking late-stage clinical trials of
Generex Oral-lyn™ in Canada, we entered into an agreement with Cardinal Health PTS, LLC, now known as Catalent Pharma Solutions
(Catalent), in June 2006, pursuant to which Catalent manufactured clinical trial batches of Generex Oral-lyn™. Pursuant to
pre-extant supply arrangements, our third-party suppliers have been manufacturing the quantities of the RapidMist™ brand
metered dose inhaler components (valves, canisters, actuators, and dust caps), the insulin, and the formulary excipients that will
be required for the Catalent production. In addition, our Regulatory Affairs, Quality Control and R&D personnel have worked
with Catalent to prepare and validate the Catalent production processes. We are not currently manufacturing product under this
agreement and we expect that any agreements regarding the manufacturing of Generex Oral-lyn™ for any future trials or commercial
sales will need to be renegotiated at such time.
34
Our subsidiary Antigen leases office and laboratory space in
Worcester, Massachusetts, which is sufficient for its present needs. The laboratory has permission to store and use biohazardous
(including recombinant DNA materials) and flammable chemicals.
Raw Material Supplies
The excipients used in our formulation are available from numerous
sources in sufficient quantities for clinical purposes, and we believe that they will be available in sufficient quantities for
commercial purposes when required, although we have not yet attempted to secure a guaranteed commercial supply of any such products.
Components suitable for our RapidMist™ brand metered dose inhaler are available from a limited number of potential suppliers,
as is the chemical propellant used in the device. The components which now comprise the device are expected to be used in the commercial
version of our insulin product in Ecuador, India, Lebanon and Algeria. We have secured supply arrangements with manufacturers for
each of the components and the propellant that we presently use in our RapidMist™ brand metered dose inhaler for commercial
quantities of such components. All such suppliers are prominent, reputable and reliable suppliers to the pharmaceutical industry.
Because we now have a single supplier for many of these, however, we are more vulnerable to supply interruptions than would be
the case if we had multiple suppliers for each component. We do not believe that the risk of supply for proprietary raw materials
or device components is unusual in the pharmaceutical industry.
Insulin is available worldwide from only a few sources. However,
alternative supplies of insulin are under development. We currently procure recombinant human insulin crystals for clinical trials
and commercial production in Ecuador from time to time from a European supplier whose production facility is GMP certified by the
FDA and European health authorities.
On December 7, 2009, we entered into a long-term agreement with
sanofi-aventis Deutschland GmbH ("sanofi-aventis").  Under this agreement, sanofi-aventis will manufacture
and supply recombinant human insulin to us in the territories specified in the agreement.  Through this agreement, we
will procure recombinant human insulin crystals for use in the production of Generex Oral-lyn™.  The terms of the
supply agreement required us to make certain minimum purchases of insulin from sanofi-aventis through the period ending December
31, 2011. As we did not meet the minimum purchase requirements by December 31, 2011, sanofi-aventis may terminate the agreement.
Upon termination, we would be obligated to pay sanofi-aventis for all materials and components that it has acquired or ordered
to manufacture insulin based on our forecasts or minimum purchase commitments, all related work-in-progress (at cost) and all finished
insulin in
inventory.
Raw materials for our pre-clinical development stage immunomedicine
products include amino acids (for peptide therapeutics) and oligonucleotides (for genetic constructs). These materials are readily
available from commercial suppliers. We utilize the services of several commercial laboratories for the manufacturing of our pre-clinical
development stage immunomedicine products.
Intellectual Property
We hold a number of patents in the United States and foreign
countries covering our buccal and other delivery technologies. We also have developed brand names and trademarks for products in
appropriate areas. We consider the overall protection of our patent, trademark and other intellectual property rights to be of
material value and acts to protect these rights from infringement.
Patents are a key determinant of market exclusivity for most
branded pharmaceutical products. Protection for individual products or technologies extends for varying periods, in accordance
with the expiration dates of patents in the various countries. The protection afforded, which may also vary from country to country,
depends upon the type of patent, its scope of coverage and the availability of meaningful legal remedies in the country.
We currently have nineteen issued U.S. patents and one pending
U.S. patent applications pertaining to various aspects of drug delivery technology, including oral administration of macromolecular
formulations (such as insulin) as well as pain relief medications such as morphine and fentanyl. We currently hold eight issued
Canadian patents and one pending Canadian patent applications also relating to various aspects of drug delivery technology. We
also hold thirty-nine issued patents and seven pending patent applications covering our drug delivery technology in jurisdictions
other than the U.S. and Canada, including Brazil, Argentina, Israel, Australia and several European countries.
35
The expiration dates of the U.S. issued patents range from 2016
to 2022. The expiration dates of the patents issued in Canada range from 2015 to 2021. The expiration dates of the patents issued
in other jurisdictions range from 2015 to 2028.
We had an indirect interest in eighteen drug delivery patents
held by another company, Centrum Biotechnologies, Inc. The expiration dates of these patents ranged from 2014 to 2016 and as it
was unlikely that we could make commercial use of the patents prior to their expiration dates, we have let these patents lapse.
In addition to patents, we hold intellectual property in the
form of trademark applications or registrations for GENEREX BIOTECHNOLOGY (Design), GENEREX BIOTECHNOLOGY (Logo), GENEREX ORAL-LYN,
ORAL LYN, ORAL-LYN and RAPIDMIST in various jurisdictions in the world. Trademarks have no effect on market exclusivity for a product,
but are considered to have marketing value. Trademark protection continues in some countries as long as used; in other countries,
as long as registered. Registration is for fixed terms and can be renewed indefinitely.
Our subsidiary Antigen Express currently holds ten issued U.S.
patents and twenty-five other foreign patents. There are also twenty pending patent applications worldwide concerning technology
for modulating the immune system via activation of antigen-specific helper T lymphocytes, including seven in the U.S. and thirteen
in other countries. Some of these patents are held under exclusive licenses from the University of Massachusetts. Dr. Robert Humphreys,
a retired officer of Antigen, is the listed inventor or co-inventor on many of these patents and patent applications, including
those licensed from the University of Massachusetts.
The expiration dates of the Antigen U.S. issued patents range
from 2013 to 2028. The expiration dates of the patents issued in other jurisdictions range from 2014 to 2023.
We possess the worldwide manufacturing and marketing rights
to our oral insulin product.
Our long-term success will substantially depend upon our ability
to obtain patent protection for our technology and our ability to protect our technology from infringement, misappropriation, discovery
and duplication. We cannot be sure that any of our pending patent applications will be granted, or that any patents which we own
or obtain in the future will fully protect our position. Our patent rights and the patent rights of biotechnology and pharmaceutical
companies in general, are highly uncertain and include complex legal and factual issues. We believe that our existing technology
and the patents which we hold or for which we have applied do not infringe anyone else's patent rights. We believe our patent rights
will provide meaningful protection against others duplicating our proprietary technologies. We cannot be sure of this, however,
because of the complexity of the legal and scientific issues that could arise in litigation over these issues. See the discussion
under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" under
the heading "Legal Proceedings" in this prospectus.
We also rely on trade secrets and other unpatented proprietary
information. We seek to protect this information, in part, by confidentiality agreements with our employees, consultants, advisors
and collaborators.
Competition
We expect that products based upon our buccal delivery technology
and any other products that we may develop will compete directly with products developed by other pharmaceutical and biotechnology
companies, universities, government agencies and public and private research organizations.
Products developed by our competitors may use a different active
pharmaceutical agent or treatment to treat the same medical condition or indication as our product or may provide for the delivery
of substantially the same active pharmaceutical ingredient as our products using different methods of administration. For example,
a number of pharmaceutical and biotechnology companies are engaged in various stages of research, development and testing of alternatives
to insulin therapy for the treatment of diabetes, as well as new methods of delivering insulin. These methods, including nasal,
transdermal, needle-free (high pressure) injection and pulmonary, may ultimately successfully deliver insulin to diabetic patients.
Some biotechnology companies also have developed different technologies to enhance the presentation of peptide antigens. Some of
our competitors and potential competitors have substantially greater scientific research and product development capabilities,
as well as financial, marketing and human resources, than we do.
36
Where the same or substantially the same active ingredient is
available using alternative delivery means or the same or substantially the same result is achievable with a different treatment
or technology, we expect that competition among products will be based, among other things, on product safety, efficacy, ease of
use, availability, price, marketing and distribution. When different active pharmaceutical ingredients are involved, these same
competitive factors will apply to both the active agent and the delivery method.
We consider other drug delivery and biotechnology companies
to be direct competitors for the cooperation and support of major drug and biotechnology companies that own or market proprietary
pharmaceutical compounds and technologies, as well as for the ultimate patient market. Of primary concern to us are the competitor
companies that are known to be developing delivery systems for insulin and other pharmaceutical agents that we have identified
as product candidates and technologies to enhance the presentation of peptide antigens.
Large pharmaceutical companies, such as Merck & Co., Inc.,
GlaxoSmithKline PLC, Novartis, Inc., MedImmune Inc. (a subsidiary of Astra-Zeneca, Inc.) and others, also compete in the oncology,
immunomedicine and vaccine markets. These companies have greater experience and expertise in securing government contracts and
grants to support research and development efforts, conducting testing and clinical trials, obtaining regulatory approvals to market
products, as well as manufacturing and marketing approved products. As such, they are also considered significant competitors in
these fields of pharmaceutical products and therapies. There are also many smaller companies which are pursuing similar technologies
in these fields and are considered to be competitors of Generex.
The following descriptions of our competitors and their products
were obtained from their filings with the Securities and Exchange Commission, information available on their web sites and industry
research reports.
Buccal Insulin Product
·
MannKind Corporation's product candidates include AFREZZA®, a mealtime insulin therapy being studied for use in adult
patients with type 1 and type 2 diabetes. It is a drug-device combination product which administers insulin through inhalation
to the lungs. MannKind submitted an NDA to the FDA requesting approval to market AFRESA in May 2009. In January 2011, MannKind
announced that it had received a complete response letter from the FDA for AFREZZA®. In August 2011, MannKind announced that
it has confirmed with the FDA the design of the two additional clinical studies which are required for AFREZZA®.
·
Nektar Therapeutics and Pfizer terminated their collaborative development and licensing agreement for Exubera® and Nektar's
next-generation inhaled insulin product in November 2007. Exubera® was the first inhaled insulin formulation to receive FDA
approval. In April 2008, Nektar announced that it had ceased all negotiations with potential partners for Exubera® and the
next-general inhaled insulin product as a result of new data analysis from ongoing clinical trials conducted by Pfizer which indicated
an increased risk of lung cancer in certain patients.
·
Novo Nordisk A/S, one of the two leading manufacturers of insulin in the world, announced in May 2008 the termination of clinical
testing of the pulmonary delivery system for inhaled insulin, the AERx® insulin Diabetes Management System (AERx iDMS), initially
developed by Aradigm Corporation. The product was in Phase III clinical trials at the time of Novo Nordisk's announcement.
In December 2010, it was announced that Novo Nordisk had entered into an exclusive Development and License Agreement with Emisphere
for its oral insulin formulation.
·
Alkermes, Inc. and Eli Lilly and Company entered into a licensing agreement in 2001 for the development of an AIR® inhaled
insulin system based upon Alkermes' AIR® pulmonary drug delivery system for large molecule drugs to the lungs with a
dry power formulation. In March 2008, Eli Lilly announced its termination of development work relating to this product.
37
·
In May 2009, Alkermes, Amylin Pharmaceuticals, Inc. and Eli Lilly and Company submitted a NDA for exenatide once weekly, an
extended-release injectable formulation, to the FDA. The NDA was accepted for review by the FDA in July 2009. If approved,
exenatide once weekly would be the first once-a-week therapy for the treatment of type 2 diabetes.
·
CPEX Pharmaceuticals, Inc.'s proprietary permeation enhancer, CPE-215®, provides skin, mouth, nose and eye membrane
absorption of a variety of pharmaceuticals. CPEX has applied this technology to Nasulin™, through which insulin is absorbed
via nasal mucosa. In April 2010, CPEX announced that it decided not to proceed with any further development activities of Nasulin™,
which was currently in Phase II clinical trials.
·
There are several companies that are working on developing products which involve the oral delivery of analogs of insulin.
Oramed Pharmaceuticals is developing an orally ingestible insulin capsule which is currently in Phase II clinical trials. Biocon
Limited has developed IN-105, a tablet for the oral delivery of insulin, which is currently in phase II trials. Diabetology has
developed Capsulin IR, an insulin capsule which is currently in Phase II clinical trials. Access Pharmaceuticals has developed
Cobalamin, an oral insulin which is currently in pre-clinical trials. Dance Pharmaceuticals is developing an inhaled insulin product
based on Aerogen's proprietary OnQ Aerosol Generator technology.
There are also a number of companies developing alternative
means of delivering insulin in the form of oral pills, transdermal patches, and intranasal methods, which are at early stages of
development. In addition to other delivery systems for insulin, there are numerous products, such as sulfonylureas (Amaryl®and
Glynase®), biguanides (branded and generic metformin products), thiazolidinediones (Avandia®and Actos®), glucagon-like
peptide 1 (Byetta®and Victoza®), and dipeptidyl peptidase IV inhibitors (Januvia® and Onglyza™), which have been
approved for use in the treatment of Type 2 diabetics in substitution of, or in addition to, insulin therapy. These products may
also be considered to compete with insulin products.
Immunomedicine Technology and Products
·
Novavax, Inc.
is a clinical-stage
biotechnology company which is developing vaccines to address a broad range of infectious diseases, including H1N1, seasonal influenza
and respiratory syncytial virus (RSV) using proprietary virus-like particle technology. Novavax's season flu vaccine is in
Phase II clinical trials and its H5N1 influenza virus-like particle vaccine is in Phase 1 clinical trials.
·
Advaxis, Inc. uses a proprietary technique to bioengineer Listeria bacteria to create a specific antigen that can stimulate
an immune response after recognition by the recipient's immune system. Advaxis' most advanced product candidate is
ADXS-HPV, which i
s in
Phase II trials for HPV-associated CIN (cervical intraepithelial neoplasia)
and recurrent cervical cancer.
·
Micromet, Inc. uses two platform technologies to treat cancers, autoimmune diseases and inflammation: (i) the creation of Single-Chain
Antibodies (SCAs) through the use of the antigen-binding region of a full-sized antibody, held together by a linker; and (ii) BiTE®
technology which utilizes the body's CTLs to attack tumor cells. Micromet's
lead product
candidate blinatumomab (MT103) is currently the subject of a European pivotal trial in patients with minimal residual disease positive
acute lymphoblastic leukemia.
·
Sanofi Pasteur Inc., the vaccine division of sanofi-aventis and one of the largest vaccines companies in the world, has product
candidates including inoculations against 20 varieties of infectious diseases. It received FDA approval for an H5N1 avian influenza
vaccine in April 2007 and for an H1N1 vaccine in September 2009.
·
Dendreon Corporation's product portfolio includes therapeutic vaccines, monoclonal antibodies and small molecules. Its
most advanced product candidate, Provenge® (sipuleucel-T), an investigational autologous (patient-specific) active cellular
immunotherapy (ACI) for the treatment of prostate cancer received FDA approval in April 2010. Dendreon is exploring the application
of additional active cellular immunotherapy product candidates and small molecules for the potential treatment of a variety of
cancers.
38
·
Galena Biopharma's (formerly Rxi Pharmaceuticals Corporation) NeuVax™, is currently
in Phase III clinical trials to evaluate NeuVax™ for the treatment of early stage, HER2-positive breast cancer. Clinical
trials are currently underway to test NeuVax™ as a treatment for prostate cancer, and to use NeuVax™ in combination
with Herceptin® to target breast cancer.
·
Cell Genesys, Inc. was developing products for the treatment of prostate cancer using the GVAX™ cancer treatments, which
are composed of tumor cells that are genetically modified to secrete an immune-stimulating cytokine and are irradiated for safety.
Cell Genesys and Takeda Pharmaceutical Co. entered into an exclusive licensing agreement for GVAX in March 2008. In late 2008,
Cell Genesys announced it was terminating the Phase III trials for the GVAX™ prostate cancer products. In May 2010, BioSante
Pharmaceuticals, Inc. announced that development of the GVAX vaccine for the treatment of prostate cancer has been reinitiated
and is in Phase II human clinical trials. In addition to GVAX prostate product, BioSante has several other cancer vaccines which
are in Phase II clinical development including vaccines for leukemia, breast cancer and pancreatic cancer.
·
Pharmexa-Epimmune, Inc., the U.S. subsidiary of Pharmexa A/S, was sold to Korean company, VaxOnco, Inc., a Korean company specializing
in peptide based vaccines, in April 2009. Pharmexa-Epimmune has in its product pipeline a peptide vaccine, GV1001, which is in
Phase III clinical trials for pancreatic cancer and Phase II clinical trials for liver and non-small cell lung cancer and two vaccines
against HER/2-positive breast cancer in Phase I and Phase II clinical trials. Pharmexa-Epimmune has received significant NIH funding
for vaccines against malaria and HIV, some of which are currently in Phase I testing.
·
CEL-SCI Corporation's main product is Multikine® an immunotherapeutic agent being developed as a cancer treatment.
Multikine®'s goal is to harness the body's natural ability to fight tumors. Multikine® has been cleared in the U.S.
and Canada for study in a global Phase III clinical trial in advanced primary (not yet treated) head and neck cancer patients.
Environmental Compliance
Our manufacturing, research and development activities involve
the controlled use of hazardous materials and chemicals. We believe that our procedures for handling and disposing of these materials
comply with all applicable government regulations. However, we cannot eliminate the risk of accidental contamination or injury
from these materials. If an accident occurred, we could be held liable for damages, and these damages could severely impact our
financial condition. We are also subject to many environmental, health and workplace safety laws and regulations, particularly
those governing laboratory procedures, exposure to blood-borne pathogens, and the handling of hazardous biological materials. Violations
and the cost of compliance with these laws and regulations could adversely affect us. However, we do not believe that compliance
with the United States, Canadian or other environmental laws will have a material effect on us in the foreseeable future.
Research and Development Expenditures
A substantial portion of our activities to date have been in
research and development. In the period from inception to April 30, 2012, our expenditures on research and development were $130,824,443.
This included $3,835,715 in the nine months ended April 30, 2012, $10,250,397 in the year ended July 31, 2011, $13,361,156 in the
year ended July 31, 2010 and $13,561,681 in the year ended July 31, 2009. Research and development activities in the first three
quarters of 2012 and in 2011 decreased from 2010, as we neared completion of the global Phase III clinical trial of our oral insulin
product. The slight decrease in our research and development activities in 2010 compared to 2009 is due primarily to the continuation
of our expenses in connection to global Phase III clinical trials of our oral insulin product compared to the previous year.
39
Financial Information About Geographic Areas
The regions in which we had identifiable assets and revenues
and the amounts of such identifiable assets and revenues for each of the last three fiscal years are presented in Note 19 in the
Notes to Consolidated Financial Statements
in this prospectus.
Identifiable assets are those that can be directly associated with a geographic area.
Employees
At September 1, 2012, we had twelve full-time employees, including
our employees at Antigen. Eight of our employees are executive and administrative, three are scientific and technical personnel
who engage primarily in development activities and in preparing formulations for testing and clinical trials, and one is engaged
in corporate and product promotion. We believe our employee relations are good. None of our employees is covered by a collective
bargaining agreement.
We will continue to need qualified scientific personnel and
personnel with experience in clinical testing, government regulation and manufacturing. We may have difficulty in obtaining qualified
scientific and technical personnel as there is strong competition for such personnel from other pharmaceutical and biotechnology
companies, as well as universities and research institutions. Our business could be materially harmed if we are unable to recruit
and retain qualified scientific, administrative and executive personnel to support our expanding activities, or if one or more
members of our limited scientific and management staff were unable or unwilling to continue their association with us. We have
fixed-term agreements with only certain members of our key management and scientific staff, Mark Fletcher, President, President
and CEO, Eric von Hofe, President of Antigen, and Nikoletta Kallinteris, Senior Research Associate of Antigen.
We use non-employee consultants to assist us in formulating
research and development strategy, in preparing regulatory submissions, in developing protocols for clinical trials, and in designing,
equipping and staffing our manufacturing facilities. We also use non-employee consultants to assist us in business development.
These consultants and advisors usually have the right to terminate their relationship with us on short notice. Loss of some of
these key advisors could interrupt or delay development of one or more of our products or otherwise adversely affect our business
plans.
Properties.
Our executive and principal administrative offices occupy approximately
2,300 square feet of office space in in downtown Toronto, Ontario, Canada which we rent at an annual rent of approximately $80,000
under a lease that runs to September 2014.
We own facilities in Toronto that are currently leased to third
parties. These units are reflected in Assets Held for Investments on the accompanying consolidated balance sheets.
We have mortgages on our Toronto properties totaling $2,051,676
at April 30, 2012. These mortgages require the payment of interest, with minimal principal reduction, prior to their due dates.
These mortgages currently require an aggregate approximately $17,750 in monthly debt service payments. Aggregate principal maturities
for these mortgages will be $1,482,023 up to April 30, 2013.
We lease approximately 4,336 square feet of office and laboratory
space in Worcester, Massachusetts which we rent under a lease agreement which runs to June 30, 2015, that Antigen uses for its
research and development activities at an annual rent of approximately $192,000. This space is sufficient for Antigen's present
activities.
We do not expect to need manufacturing capabilities in Canada
related to our insulin product, as it is likely that we will contract out the manufacturing of product requirements for any future
clinical trials and commercial sales.
40
Legal Proceedings.
Subash Chandarana et al. v. Generex Biotechnology Corporation
.
In February 2001, a former business associate of Pankaj Modi ("Modi") (a former officer of Generex) and an entity called
Centrum Technologies Inc. ("CTI") commenced an action in the Ontario Superior Court of Justice against us and Modi seeking,
among other things, damages for alleged breaches of contract and tortious acts related to a business relationship between this
former associate and Modi that ceased in July 1996. The plaintiffs' statement of claim also seeks to enjoin the use, if any,
by us of three patents allegedly owned by CTI. The three patents are entitled Liquid Formulations for Proteinic Pharmaceuticals,
Vaccine Delivery System for Immunization, Using Biodegradable Polymer Microspheres, and Controlled Releases of Drugs or Hormones
in Biodegradable Polymer Microspheres. It is our position that the buccal drug delivery technologies which are the subject matter
of our research, development, and commercialization efforts, including Generex Oral-lyn™ and the RapidMist™ Diabetes
Management System, do not make use of, are not derivative of, do not infringe upon, and are entirely different from the intellectual
property identified in the plaintiffs' statement of claim. On July 20, 2001, we filed a preliminary motion to dismiss the
action of CTI as a nonexistent entity or, alternatively, to stay such action on the grounds of want of authority of such entity
to commence the action. The plaintiffs brought a cross motion to amend the statement of claim to substitute Centrum Biotechnologies,
Inc. ("CBI") for CTI. CBI is a corporation of which 50 percent of the shares are owned by the former business associate
and the remaining 50 percent are owned by us. Consequently, the shareholders of CBI are in a deadlock. The court granted our motion
to dismiss the action of CTI and denied the plaintiffs' cross motion without prejudice to the former business associate to
seek leave to bring a derivative action in the name of or on behalf of CBI. The former business associate subsequently filed an
application with the Ontario Superior Court of Justice for an order granting him leave to file an action in the name of and on
behalf of CBI against Modi and us. We opposed the application. In September 2003, the Ontario Superior Court of Justice granted
the request and issued an order giving the former business associate leave to file an action in the name of and on behalf of CBI
against Modi and us. A statement of claim was served in July 2004. Since that time, the plaintiffs have not taken any steps in
furtherance of the proceeding. We are not able to predict the ultimate outcome of this legal proceeding at the present time or
to estimate an amount or range of potential loss, if any, from this legal proceeding.
On April 6, 2010, we commenced legal proceedings against TheStreet.com,
Inc. and Adam Feuerstein in the Supreme Court of the State of New York (New York, NY) seeking $250,000,000 in damages for business
defamation, product disparagement, and injurious falsehood. The claims arose out of articles authored by Mr. Feuerstein and published
on TheStreet.com website on March 19 and March 26, 2010. On November 17, 2011, the parties agreed to discontinue the action with
prejudice, and a Stipulation of Discontinuance was filed by the parties with the Supreme Court of the State of New York on November
21, 2011, with each party bearing its own attorney's fees and costs. Pursuant to the settlement agreement, no payments were made
to or by the respective parties in connection with this resolution.
Disputes with Former Officer
In May 2011, Rose C. Perri, our former Chief Operating Officer
and Chief Financial Officer, commenced two proceedings against us. On May 11, 2011, Ms. Perri filed a notice of application in
the Ontario Superior Court of Justice, Commercial List, against Generex, two of our affiliates (1097346 Ontario, Inc. and Generex
Pharmaceuticals Inc.), three of our independent directors (John P. Barratt, Nola Masterson and Brian T. McGee), our President and
Chief Executive Officer (Mark A. Fletcher), our Chief Operating Officer (David Brusegard) and our Acting Chief Financial Officer
(Stephen Fellows). The application has since been abandoned.
On May 20, 2011, Ms. Perri filed a statement of claim (subsequently
amended) in the Ontario Superior Court of Justice, naming the following as defendants: Generex, Mr. Barratt, Ms. Masterson, Mr.
McGee, and Mr. Fletcher. In this action, Ms. Perri has alleged that the defendants engaged in discrimination, harassment, bad faith
and infliction of mental distress in connection with the termination of her employment with Generex. Ms. Perri is seeking damages
in this action in excess of $7,000,000 for, among other things, breach of contract, breach of fiduciary duty, violations of the
Ontario Human Rights Code and aggravated and punitive damages. On September 20, 2011, the defendants filed a statement of defense
and counterclaim, also naming Time Release Corp., Khazak Group Consulting Corp., and David Khazak, C.A. as defendants by counterclaim,
and seeking damages of approximately $2.3 million in funds that the defendants allege Ms. Perri wrongly caused Generex to pay to
third parties in varying amounts over several years and an accounting of certain third-party payments, plus interests and costs.
The factual basis for the counterclaim involves payments made by Generex to third parties believed to be related to Ms. Perri.
For a discussion of certain of these related party transactions, see the disclosures under the caption "Management's
Discussion and Analysis of Financial Condition and Results of Operations" under the heading "Certain Related Party
Transactions" in this prospectus. We intend to defend this action and pursue our counterclaim vigorously. We are not able
to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss,
if any, from this legal proceeding.
41
On June 1, 2011, Golden Bull Estates Ltd. filed a claim in the
Ontario Superior Court of Justice, naming Generex, 1097346 Ontario, Inc. and Generex Pharmaceuticals Inc. as defendants. The plaintiff,
Golden Bull Estates, is controlled by Ms. Perri. The plaintiff alleges damages in the amount of $550,000 for breach of contract
and $50,000 for punitive damages, plus interest and costs. The plaintiff's claims relate to an alleged contract between the
plaintiff and Generex for property management services for certain Ontario properties owned by Generex. Generex terminated the
plaintiff's property management services in April 2011. Following the close of pleadings, we served a motion for summary
judgment. The plaintiff responded by amending its statement of claim to include a claim to our interest in certain of our real
estate holdings. The plaintiff moved for leave to issue and register a Certificate of Pending Litigation in respect of this real
estate. The motion was not successful in respect of any current real estate holdings of Generex. We are not able to predict the
ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any, from
this legal proceeding.
In August 2011, the estate of Antonio Perri, the late father
of Ms. Perri, commenced an action against Generex Pharmaceuticals, Inc., the law firm of Brans, Lehun, Baldwin LLP and William
Lehun in the Ontario Superior Court of Justice, claiming that the estate is entitled to the proceeds of sale (approximately $1,730,000)
received by Generex on its sale of two properties to Golden Bull Estates, a company controlled by Ms. Perri. The suit alleges that
no consideration was received when Generex purchased the two properties from Antonio Perri in 1998. We have responded to this statement
of claim and intend to defend this action vigorously. We are not able to predict the ultimate outcome of this legal proceeding
at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding.
In December 2011, a vendor commenced an action against Generex
Biotechnology Corporation and its subsidiary, Generex Pharmaceuticals, Inc., in the Ontario Superior Court of Justice claiming
damages for unpaid invoices including interest in the amount of $429,000, in addition to costs and further interest. We have responded
to this statement of claim and intend to defend this action vigorously. We have also asserted a counterclaim in the proceeding
for $200,000 arising from the vendor's breach of contract and detinue, together with interest and costs. A hearing for the
vendor's motion for summary judgment is scheduled for November 15, 2012. We will be responding to the motion. We are not
able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential
loss, if any, from this legal proceeding.
We are involved in certain other legal proceedings in addition
to those specifically described herein. Subject to the uncertainty inherent in all litigation, we do not believe at the present
time that the resolution of any of these legal proceedings is likely to have a material adverse effect on our financial position,
operations or cash flows.
With respect to all litigation
matters, as additional information concerning the estimates used by us becomes known, we reassess each matter's position
both with respect to accrued liabilities and other potential exposures.
42
SELECTED FINANCIAL DATA
The following selected financial data are derived from and should
be read in conjunction with our consolidated financial statements and related notes, which appear elsewhere in this prospectus.
Our consolidated financial statements for the years ended July 31, 2011, 2010, 2009 and 2008 were audited by MSCM LLP, and our
consolidated financial statements for the year ended July 31, 2007 were audited by Danziger Hochman Partners LLP (formerly known
as Danziger & Hochman, Chartered Accountants which merged with MSCM LLP effective as of August 1, 2008).
Fiscal year ended July 31,
Nine months ended April 30,
In thousands (except per share data)
2011
2010
2009
2008
2007
2012
2011
Unaudited
Operating Results:
Revenue
$
292
$
1,173
$
1,118
$
125
$
180
$
22
$
269
Net Loss
(21,676
)
(25,280
)
(45,812
)
(36,229
)
(23,505
)
(7,914
)
(16,231
)
Net Loss Available to Common Stockholders
(22,442
)
(25,280
)
(45,812
)
(36,229
)
(23,505
)
(8,291
)
(16,231
)
Cash Dividends per share
—
—
—
—
—
—
—
Loss per Common Share:
Basic and Diluted Net Loss Per Common Share
(0.08
)
(0.10
)
(0.32
)
(0.33
)
(0.22
)
(0.02
)
(0.06
)
As of  July 31,
As of
April 30,
In thousands (except per share data)
2011
2010
2009
2008
2007
2012
Financial Positions:
Unaudited
Total Assets
$
12,006
$
24,575
$
24,814
$
38,148
$
46,404
$
6,268
Long-Term Debt
$
1,870
$
1,824
$
1,854
$
1,355
$
3,059
$
570
Convertible Debentures
$
—
$
—
$
—
$
4,719
$
—
$
—
Preferred Stock*
$
—
$
—
$
—
$
—
$
—
$
—
Stockholder's (Deficiency)/Equity
$
(8,442
)
$
8,971
$
14,224
$
22,647
$
36,071
$
(7,651
)
* At July 31, 2011, there were 1,287 shares of Series A convertible
preferred stock outstanding which have a face value of $1,000 per share ($1,287,000 in aggregate), but which have an accounting
value of zero. See Note 12 to the
Notes to Consolidated Financial Statements
included elsewhere in this registration statement.
There was no preferred stock outstanding in any of the fiscal years 2007 through 2010, inclusive. As of April 30, 2012, all outstanding
Series A convertible preferred stock outstanding had been converted to common stock. At April 30, 2012, there were 2,000 shares
of Series B convertible preferred stock outstanding ,which have a face value of $1,000 per share ($2,000,000 in aggregate), but
which have an accounting value of zero.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
The following discussion and analysis
of our financial condition and results of operations should be read in conjunction with the financial statements and related notes
appearing elsewhere in this prospectus. The discussion in this section regarding our business and operations include "forward-looking
statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements consist of
any statement other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as
"may", "expect", "anticipate", "estimate", or "continue", or the
negative thereof or other variations thereof or comparable terminology. You are cautioned that all forward looking statements are
speculative, and there are certain risks and uncertainties that could cause actual events or results to differ from those referred
to in such forward-looking statements. Actual results may differ materially from those anticipated in these forward-looking statements
as a result of various factors, including those set forth in the ""Risk Factors'' section and elsewhere in
this prospectus. We assume no obligation to update any such forward-looking statements. The following should be read in conjunction
with the audited financial statements and the notes thereto included elsewhere herein. Certain numbers in this section have been
rounded for ease of analysis.
43
The following discussion and analysis by management provides
information with respect to our financial condition and results of operations for the fiscal years ended July 31, 2011, 2010 and
2009 and the nine months ended April 30, 2012. This discussion should be read in conjunction with the information in the consolidated
financial statements and the notes pertaining thereto and l under the caption "Risk Factors" included elsewhere in
this prospectus.
Overview of Business
We are engaged primarily in the research and development of
drug delivery systems and technologies. Our primary focus at the present time is our proprietary technology for the administration
of formulations of large molecule drugs to the oral (buccal) cavity using a hand-held aerosol applicator. Through our wholly-owned
subsidiary, Antigen, we have expanded our focus to include immunomedicines incorporating proprietary vaccine formulations.
We believe that our buccal delivery technology is a platform
technology that has application to many large molecule drugs and provides a convenient, non-invasive, accurate and cost-effective
way to administer such drugs. We have identified several large molecule drugs as possible candidates for development, including
estrogen, heparin, monoclonal antibodies, human growth hormone and fertility hormones, but to date have focused our development
efforts primarily on one pharmaceutical product, Generex Oral-lyn™, an insulin formulation administered as a fine spray into
the oral cavity using our proprietary hand-held aerosol spray applicator known as RapidMist™.
Our subsidiary, Antigen Express, concentrates on developing
proprietary vaccine formulations that work by stimulating the immune system to either attack offending agents (i.e., cancer cells,
bacteria, and viruses) or to stop attacking benign elements (i.e. self proteins and allergens). Our immunomedicine products are
based on two platform technologies and are in the early stages of development. We continue clinical development of Antigen's
synthetic peptide vaccines designed to stimulate a potent and specific immune response against tumors expressing the HER-2/neu
oncogene for patients with HER-2/neu positive breast cancer in a Phase II clinical trial and patients with prostate cancer and
against avian influenza in two Phase I clinical trials. We recently initiated an additional Phase I clinical trial in patients
with either breast or ovarian cancer.  The synthetic vaccine technology has certain advantages for pandemic or potentially
pandemic viruses, such as the H5N1 avian and H1N1 swine flu.  In addition to developing vaccines for pandemic influenza
viruses, we have vaccine development efforts underway for seasonal influenza virus, HIV, HPV, melanoma, ovarian cancer, allergy
and Type I diabetes mellitus. We have established collaborations with clinical investigators at academic centers to advance these
technologies.
To date, we have received regulatory approval in Ecuador, India
(subject to further study), Lebanon and Algeria for the commercial marketing and sale of Generex Oral-lyn™. We have previously
submitted regulatory dossiers for Generex Oral-lyn™ in a number of other countries, including Bangladesh, Kenya, Jordan and
Armenia. While we believe these countries will ultimately approve our product for commercial sale, we do not anticipate recognizing
revenues in any of these jurisdictions in the next twelve months. No dossier related activities or product shipments have taken
place during 2011, nor are any expected to these countries during the remainder of 2012.
In March 2008, we initiated Phase III clinical trials for this
product in the U.S. with the first patient screening for such trials at a clinical study site in Texas in April 2008. Approximately
450 patients have been enrolled to date at approximately 70 clinical sites around the world, including sites in the United States,
Canada, Bulgaria, Poland, Romania, Russia, Ukraine and Ecuador. The final subjects completed the trial in August 2011. After appropriate
validation, the data from approximately 450 patients was tabulated, reviewed and analyzed. Those results from the Phase III trial
along with a comprehensive review and supplemental analyses of approximately 40 prior Oral-lyn clinical studies were compiled and
submitted to the FDA in late December 2011 in a comprehensive package including a composite metanalysis of all safety data. Following
notification of the completion of their review, we will schedule a meeting with the FDA to arrive at a consensus for the pathway
for regulatory approval, including any additional clinical or pharmacological studies that might be required to support regulatory
approval or enhance marketing success.
We are a development stage company. From inception through April
30, 2012, we have received only limited revenues from operations. In the nine months ended April 30, 2012, we generated $21,901
in revenue and in the fiscal years ended July 31, 2011, 2010 and 2009, we generated $291,628, $1,172,611 and $1,118,509 in revenue,
respectively. The revenue in fiscal 2009 included $500,000 relating to an upfront license fee for the signing of a license and
distribution agreement for Generex Oral-lyn™, while the remainder of the revenue in each of the fiscal periods pertained
primarily to the sale of our consumer/over-the-counter products. These numbers do not reflect deferred sales to customers during
the respective periods with the right of return.
44
As of April 30, 2012, our current cash position is not sufficient
to meet our working capital needs for the next twelve months. To continue operations, we will require additional funds to support
our working capital requirements and any development activities, or will need to suspend operations.
We operate in only one segment: the research and development
of drug delivery systems and technologies for metabolic and immunological diseases.
Accounting for Research and Development Projects
Our major research and development projects are the refinement
of our platform buccal delivery technology, our buccal insulin project (Generex Oral-lyn™) and Antigen's peptide immunotherapeutic
vaccines.
During the nine months ended April 30, 2012, we expended resources
on the clinical testing of our buccal insulin product, Generex Oral-lyn™. The completion of late-stage trials in Canada and
eventually the United States may require significantly greater funds than we currently have on hand.
During the nine months ended April 30, 2012, we expended resources
on research and development relating to Antigen's peptide immunotherapeutic vaccines and related technologies. One Antigen
vaccine is currently in Phase II clinical trials in the United States involving patients with HER-2/neu positive breast cancer,
and we have completed a Phase I clinical trial for an Antigen vaccine for H5N1 avian influenza which was conducted at the Lebanese-Canadian
Hospital in Beirut. Antigen's prostate cancer vaccine based on AE37 has been tested in a completed (August 2009) Phase I
clinical trial in Greece.
Because of various uncertainties, we cannot predict the timing
of completion and commercialization of our buccal insulin or Antigen's peptide immunotherapeutic vaccines or related technologies.
These uncertainties include the success of current studies, our ability to obtain the required financing and the time required
to obtain regulatory approval even if our research and development efforts are completed and successful, our ability to enter into
collaborative marketing and distribution agreements with third-parties, and the success of such marketing and distribution arrangements.
For the same reasons, we cannot predict when any products may begin to produce net cash inflows.
Most of our buccal delivery research and development activities
to date have involved developing our platform technology for use with insulin. As a result, we have not made significant distinctions
in the accounting for research and development expenses among products, as a significant portion of all research has involved improvements
to the platform technology in connection with insulin, which may benefit all of our potential buccal products. During the nine
months ended April 30, 2012, approximately 63% of our $3,835,715 in research expenses was attributable to insulin and platform
technology development, and we did not have any research expenses related to other buccal projects. During the fiscal year ended
July 31, 2011, approximately 75% or $7,669,139 of our $10,250,397 in research expenses was attributable to insulin and platform
technology development, and we did not have any research expenses related to other buccal projects. During the fiscal year ended
July 31, 2010, approximately 86% or $11,516,050 of our $13,361,156 in research expenses was attributable to insulin and platform
technology development, and we did not have any research expenses related to other buccal projects. During the fiscal year ended
July 31, 2009, approximately 84% or $11,424,702 of our $13,561,681 in research expenses was attributable to insulin and platform
technology development, and we did not have any research expenses related to other buccal projects.
During the nine months ended April 30, 2012, approximately 37%
of our $3,835,715 in research expenses was attributable to Antigen's immunomedicine products. Approximately 25% or $2,581,258 of
our research and development expenses for the fiscal year ended July 31, 2011 was related to Antigen's immunomedicine products,
compared to approximately 14% or $1,845,106 of our research and development expenses for the fiscal year ended July 31, 2010 and
approximately 16% or $2,136,979 of our research and development expenses for the fiscal year ended July 31, 2009. Because these
products are in initial phases of clinical trials or early, pre-clinical stage of development (with the exception of the Phase
II clinical trials of Antigen HER-2/neu positive breast cancer vaccine that are underway), all of the expenses were accounted for
as basic research and no distinctions were made as to particular products. Due to the early stage of development, we cannot predict
the timing of completion of any products arising from this technology, or when products from this technology might begin producing
revenues.
45
Critical Accounting Policies
Our discussion and analysis of our financial condition and results
of operations is based on our consolidated financial statements which have been prepared in conformity with accounting principles
generally accepted in the United States of America. It requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
We consider certain accounting policies related to impairment
of long-lived assets, intangible assets and accrued liabilities to be critical to our business operations and the understanding
of our results of operations:
Going Concern.
As shown in the accompanying
consolidated financial statements, we have not been profitable and have reported recurring losses from operations.  These
factors raise substantial doubt about our ability to continue to operate in the normal course of business.  The accompanying
consolidated financial statements do not include any adjustments that might be necessary should we be unable to continue as a going
concern.
Revenue Recognition
. Net sales of our over-the-counter
consumer products are generally recognized in the period in which the products are delivered. Delivery of the products generally
completes the criteria for revenue recognition for us. In the event where the customers have the right of return, sales are deferred
until the right of return lapses, the product is sold to a third party or a provision for returns can be reasonably estimated based
on historical experience.
Inventory.
Inventories are stated at the lower of cost
or market with cost determined using the first-in first-out method. Management considers such factors as the amount of inventory
on hand and in the distribution channel, estimated time to sell such inventory, inventories shelf life and current market conditions
when determining whether the lower cost or market is used. As appropriate, a provision is recorded to reduce inventories to their
net realizable value.  Inventory also includes the cost of products sold to the customers with the rights of return.
Impairment of Long-Lived Assets
. Management reviews for
impairment whenever events or changes in circumstances indicate that the carrying amount of property and equipment may not be recoverable
under the provisions of accounting for the impairment of long-lived assets. If it is determined that an impairment loss has occurred
based upon expected future cash flows, the loss is recognized in the Consolidated Statement of Operations.
Intangible Assets
. We have intangible assets related
to patents. The determination of the related estimated useful lives and whether or not these assets are impaired involves significant
judgments. In assessing the recoverability of these intangible assets, we use an estimate of undiscounted operating income and
related cash flows over the remaining useful life, market conditions and other factors to determine the recoverability of the asset.
If these estimates or their related assumptions change in the future, we may be required to record impairment charges against these
assets.
Estimating accrued liabilities, specifically litigation accruals
.
Management's current estimated range of liabilities related to pending litigation is based on management's best estimate of future
costs. While the final resolution of the litigation could result in amounts different than current accruals, and therefore have
an impact on our consolidated financial results in a future reporting period, management believes the ultimate outcome will not
have a significant effect on our consolidated results of operations, financial position or cash flows.
Share-based compensation.
Management determines value
of stock-based compensation to employees in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification
(ASC) 718, Compensation – Stock Compensation. Management determines value of stock-based compensation to non-employees and
consultants in accordance with and ASC 505, Equity-Based Payments to Non-Employees.
46
Derivative warrant liability
.  FASB ASC 815,
Derivatives and Hedging, requires all derivatives to be recorded on the consolidated balance sheet at fair value for fiscal years
beginning after December 15, 2008.  As a result, certain derivative warrant liabilities (namely those with a price protection
feature) are now separately valued as of August 1, 2009 and accounted for on our balance sheet, with any changes in fair value
recorded in earnings.  On our consolidated balance sheets as of April 30, 2012, July 31, 2011 and July 31, 2010, we used
the binomial lattice model to estimate the fair value of these warrants. Key assumptions of the binomial lattice option-pricing
model include the market price of our stock, the exercise price of the warrants, applicable volatility rates, risk-free interest
rates, expected dividends and the instrument's remaining term.  These assumptions require significant management
judgment.  In addition, changes in any of these variables during a period can result in material changes in the fair
value (and resultant gains or losses) of this derivative instrument.
Results of Operations
Nine Months Ended April 30, 2012 Compared to Nine Months
Ended April 30, 2011
We had a net loss for the three quarters ended April 30, 2012
of $7,914,440 versus a net loss of $16,231,126 in the corresponding three quarters of the prior fiscal year. The $8.3 million improvement
in net loss in this fiscal year versus the corresponding period of the prior fiscal year is primarily due to an $11.2 million reduction
in operating expenses in all major categories, offset by a $1.6 million loss due to the change in fair value of the derivative
liabilities in the current fiscal year versus a gain of $2.0 million in the prior fiscal year.  Our operating loss for the
three quarters ended April 30, 2012 decreased to $7,722,279 compared to $18,803,337 in the comparative three quarters of 2011.  The
decrease in operating loss resulted from a decrease in selling expense (to $167,316 from 806,798), a decrease in research and development
expenses (to $3,835,715 from 7,859,382), and a decrease in general and administrative expenses (to $3,732,027 from $10,262,883).
Our revenues in the three quarters ended April 30, 2012 decreased to $21,901 from $269,086 for the three quarters ended April 30,
2011 reflecting lower sales of our over-the-counter products due to a decision not to focus resources on the sale of these products
going forward.
The decrease in research and development expenses in the current
fiscal year period versus the comparative period in the previous fiscal year, is primarily due to the field portion of the global
Phase III clinical trials of our oral insulin product and platform technology being completed in August 2011, resulting in significantly
lower costs on an ongoing basis related to this trial. The company's efforts to significantly reduce expenses in all categories
also contributed to the decrease in this category. The decrease in general and administrative expenses is primarily related to
a decrease in professional services expenses including legal, accounting, consulting and financial services of over $4.2 million
in the three quarters ended April 30, 2012, as compared to the previous year period ended April 30, 2011, as well as reductions
of expenses in most other categories due to management's efforts to reduce expenses and conserve cash. The decrease in selling
expenses for the quarter ended April 30, 2012 versus the prior year comparative quarter is associated with decreased advertising
and promotion relating to our over-the-counter products.
Our interest expense in the first three quarters of fiscal 2012
increased to $518,506, compared to interest expense of $153,385 in the first three quarters of fiscal 2011, due to the amortization
of fees and costs associated with the January and February 2012 property financings, as well as penalties incurred upon the early
discharge of mortgages on the properties held for investment which were sold in March and April 2012. Our interest income decreased
to $1,215 in the first three quarters of fiscal 2012, compared to $5,985 in the comparable period for last fiscal year, due to
lower average cash balances.  We recognized higher income from assets held for investment (net of expense) of $1,928,850
in the first three quarters of fiscal 2012 compared to $236,732 in the same quarter of the previous fiscal year due primarily to
accounting gains related to the sale of the properties held for investment in August 2011 and March and April 2012 of approximately
$1.8 million, while rental income decreased slightly from the comparative prior fiscal year period. Change in fair value of derivative
liabilities caused a loss of $1,603,720 in the first three quarters of fiscal 2012 versus a gain of $1,993,920 in the comparative
prior fiscal year period. The change in fair value of the warrants carried as a derivative liability contributed a loss of $1,276,950
in this category in the current year, compared to a gain of $1,993,920 in the comparable period last year, while the change in
fair value of the additional investment rights contributed a loss in fiscal 2012 only, of $326,770.
47
Year Ended July 31, 2011 Compared to Year Ended July 31,
2010
Our net loss available to shareholders for the fiscal year ended
July 31, 2011 (fiscal 2011) was $22,442,284 versus $25,279,940 in the fiscal year ended July 31, 2010 (fiscal 2010). The decrease
in net loss in fiscal 2011 versus fiscal 2010 is primarily due to the decrease in operating expenses by over $5 million in fiscal
2011, offset by a smaller gain due to the revaluation of the derivative warrants in fiscal 2011 of $2,220,916 versus a gain of
$4,125,590 in fiscal 2010. Our operating loss for fiscal 2011 decreased to $24,533,082 compared to $29,429,817 in fiscal 2010.
The decrease resulted primarily from a decrease in research and development expenses to $10,250,397 from $13,361,156, a decrease
in selling expense to $1,025,774 from $3,709,767 offset by a slight increase in general and administrative expenses to $13,392,920
from $12,719,239. Revenue decreased to $291,628 from $1,172,611, while gross profits decreased to $136,009 from $360,345. The decrease
in revenue and gross profit is attributable to lower sales of our consumer/
over-the-counter
products
in North America, as well as the Middle East North African region.
The increase in general and administrative expenses is primarily
related an increase in professional expenses, including the issuance of stock in exchange for financial and consulting services
which amounted to $1,856,505 in fiscal 2011 versus $961,862 in fiscal 2010.  The decrease in selling expenses for fiscal
2011 versus fiscal 2010 is associated with a reduction in advertising and promotion related to our consumer/over-the-counter products,
as well as a reduction of costs associated with our MENA sales office in Dubai. Research and development expenses decreased by
over $3 million in fiscal 2011 from fiscal 2010, as expenditures relating to the Phase III trials for our
Generex
Oral-lyn™ product decreased significantly in fiscal 2011 versus fiscal 2010, which was partially offset by increases in the
cost of Phase II trials for Antigen's immunomedicine products.
Our interest expense in fiscal 2011 decreased slightly to $208,906,
compared to interest expense of $210,083 in fiscal 2010.  Our interest income decreased to $6,455 in fiscal 2011from $27,045
in fiscal 2010 primarily due to lower average cash balances. We received higher income from rental operations (net of expense)
of $349,458 in fiscal 2011 compared to $206,575 in fiscal 2010 due to higher tenancies in fiscal 2011, in addition to the positive
impacts of a stronger Canadian dollar.
Our net loss available to shareholders was increased by $766,417
in fiscal 2011 relating to a preferred stock dividend as a result of the accounting treatment of our convertible preferred stock
financing in July 2011. This amount represents a deemed dividend to the investors as a result of this financing, as further described
in Note 12 to the
Notes to Consolidated Financial Statements
included elsewhere in this registration statement.  There
was no preferred stock dividend in fiscal 2010.
Year Ended July 31, 2010 Compared to Year Ended July 31,
2009
Our net loss for the fiscal year ended July 31, 2010 (fiscal
2010) was $25,279,940 versus $45,812,228 in the fiscal year ended July 31, 2009 (fiscal 2009). The decrease in net loss in fiscal
2010 versus fiscal 2009 is primarily due to the decrease in interest expense to $210,083 from $20,114,595. The interest expense
in fiscal 2009 consisted primarily of the non-cash interest expense related to the amortization of the discount on the secured
convertible notes issued in March 2008 of $15,931,481. The decrease in fiscal 2010 interest expense was offset by an increase in
operating expenses of $2,943,225. In addition, there was a non-cash gain of $4,125,590 in fiscal 2010 relating to the fair valuation
of the derivative warrant liability as of July 31, 2010. Our operating loss for fiscal 2010 increased to $29,429,817 compared to
$26,256,160 in fiscal 2009. The increase resulted primarily from an increase in selling expense to $3,709,767 from $2,120,903,
an increase in general and administrative expenses to $12,719,239 from $11,164,352, offset by a slight reduction in research and
development expenses to $13,361,156 from $13,561,861. Revenue increased marginally to $1,172,611 from $1,118,509, while gross profits
decreased to $360,345 from $590,776. The decrease in gross profit is attributable to a non-refundable license fee relating to the
signing of a licensing and distribution agreement in Korea for Generex Oral-lyn™ being included in fiscal 2009 revenues,
while in fiscal 2010 revenue consisted primarily of sales of our consumer/over-the-counter consumer products in North America,
as well as the Middle East North African region.
The increase in general and administrative expenses is primarily
related to the non-cash, one time stock option modification charge of $875,773 in fiscal 2010, charges of $767,373 related to the
executive options granted in fiscal 2010, as well as an increase in professional expenses, including the issuance of warrants in
exchange for financial services resulting in a non-cash expense of $591,000 versus fiscal 2009.  The increase in selling
expenses for fiscal 2010 versus fiscal 2009 is associated with increased advertising and promotion of our consumer/over-the-counter
products, as well as the costs associated with our MENA sales office in Dubai. Research and development expenses remained fairly
static from fiscal 2010 and fiscal 2009, as expenditures relating to the Phase III trials for our
Generex
Oral-lyn™ product, as well as Antigen's early stage trials for its immunomedicine products, remained at roughly the
same levels as the prior year.
48
Our interest income decreased to $27,045 in fiscal 2010 compared
to $237,977 in fiscal 2009 primarily due to lower market interest rates. We received lower income from rental operations (net of
expense) of $206,575 in fiscal 2010 compared to $320,547 in fiscal 2009.
Financial Condition, Liquidity and Resources
Sources of Liquidity
To date we have financed our development stage activities primarily
through private placements of our common stock and securities convertible into our common stock.
As of April 30, 2012, our current cash position is not sufficient
to meet our working capital needs for the next twelve months. Therefore, we will require additional funds to support our working
capital requirements and any development or other activities, or will need to curtail our clinical trials and other planned activities
or suspend operations.
While we have financed our development stage activities to
date primarily through private placements of our common stock and securities convertible into our common stock and raised approximately
$6.5 million during fiscal 2011 and approximately $4.0 million during fiscal 2012, our cash balances have been extremely low thus
far in fiscal 2012.
On March 30, 2011, our realigned management team announced
its strategic development plan for Generex's future growth. The plan included the spin-out of Antigen Express, a reverse
stock split for Generex and a rights offering to Generex stockholders. As proposed, we would spin out Antigen Express as a separate
DTC-eligible company, register its shares with the Securities and Exchange Commission (the "SEC"), and seek to list
its shares on a national securities exchange. Management believes that the spin-out would increase value for stockholders and
provide Antigen Express with ready access to capital markets to finance its on-going clinical and regulatory initiatives. Management
further believes that the spin-out would benefit Generex, by allowing Generex to hold a controlling interest in a publicly-traded
company while continuing to focus on maximizing opportunities for its buccal drug delivery platform. The spin-out would be accomplished
by the issuance of one or more dividends of Antigen Express stock to Generex stockholders. No determination has been made as to
the timing of the proposed spin-out.
This prospectus does not constitute an offer of any securities
for sale or a solicitation of an offer to buy any securities related to these planned transactions.
Although stockholders approved a reverse stock split proposal
at the June 8, 2011 annual meeting of stockholders, our Board of Directors will only seek to implement a reverse stock split in
conjunction with an effort to list our common stock on a national stock exchange. The terms of the securities purchase agreements
that we entered into on January 31, 2012 and August 8, 2012 also prohibit us from undertaking a reverse or forward stock split
or reclassification of our common stock except for a reverse stock split made in conjunction with a listing of the common stock
on a national securities exchange. As there are significant conditions, in addition to the minimum share price, which must be met
before we can be considered for listing, management does not anticipate that the Board of Directors will move forward with a reverse
stock split in the near future. Management's contemplated rights offering of common stock and warrants to our stockholders
is contingent upon the occurrence of the reverse stock split and listing of our common stock.
Management may seek to meet all or some of our operating cash
flow requirements through financing activities, such as private placement of our common stock, preferred stock offerings and offerings
of debt and convertible debt instruments as well as through merger or acquisition opportunities. The securities purchase agreements
that we entered into on January 31, 2012 and August 8, 2012 with certain investors prohibits us from (i) issuing additional equity
securities until 60 days after the effective date of a registration statement covering the resale of the common stock issuable
upon exercise of the warrants and conversion of the preferred stock sold in that transaction and (ii) issuing additional debt or
equity securities with variable a conversion or exercise price until February 1, 2013 and August 10, 2013, respectively.
49
Through the shelf registration statement (File No. 333-164591)
that we filed on January 29, 2010 and which was declared effective on February 9, 2010, we raised an aggregate of $4,056,000 in
gross proceeds between January and April 2011 and raised an additional $2,575,000 in gross proceeds in July 2011 pursuant to a
convertible preferred stock purchase agreement with takedowns from the shelf registration statement as described below. Upon the
filing of our Annual Report on Form 10-K on October 14, 2011, we were no longer eligible to use the shelf registration statement
as the aggregate market value of our outstanding voting and non-voting common equity held by non-affiliates is less than $75 million.
As we are required under the registration rights agreement that we entered into on August 8, 2012 with certain investors to register
shares of our common stock issuable upon conversion or exercise of the securities purchased by the investors, we are filing this
registration statement on Form S-1 because we are not eligible to use Form S-3. We will incur additional legal and accounting fees
in connection with the preparation of this Form S-1 registration statement.
In addition, management is actively pursuing financial and strategic
alternatives, including strategic investments and divestitures, industry collaboration activities, and potential strategic partners.
Management has sold, and is also seeking further sales of, non-essential real estate assets which are classified as Assets Held
for Investment to augment its cash position.
We believe that the Phase III clinical trial for Oral-lyn™
in the United States and Canada represents a significant milestone event. We believe that the successful commercial launch of Oral-lyn™
in countries where we have approval would enhance our ability to access additional sources of funding.  We will continue to
require substantial funds to continue research and development, including preclinical studies and clinical trials of our product
candidates, further clinical trials for Oral-lyn™ and to commence sales and marketing efforts if the FDA or other regulatory
approvals are obtained.
Unforeseen problems with the conduct or results of Phase III
clinical trials for Oral-lyn™ or further negative developments in general economic conditions could interfere with our ability
to raise additional capital as needed, or materially adversely affect the terms upon which such capital is available.  We
cannot provide any assurance that we will obtain the required funding. Our inability to obtain required funding in the near future
or our inability to obtain funding on favorable terms will have a material adverse effect on our operations and our strategic development
plan for future growth. If we cannot successfully raise additional capital and implement our strategic development plan, our liquidity,
financial condition and business prospects will be materially and adversely affected and we may have to cease operations.
Equity Financings
Following is a summary of the equity financing activities that
we completed in fiscal 2011, in February 2012 and in August 2012.
Financing – January to April 2011
On January 24, 2011, we and certain institutional investors
entered into a securities purchase agreement relating to the offering and sale of up to $6 million of shares of our common stock
and warrants to purchase shares of our common stock. The initial closing occurred on January 25, 2011, at which time the investors
purchased an aggregate of 12,000,000 shares of common stock together with warrants to purchase an aggregate of 12,000,000 shares
of common stock for a total purchase price of $3,000,000. The five-year warrants were immediately exercisable and have an exercise
price of $0.25 per share. The net proceeds to us from this offering, after deducting finders' fees and our offering expenses,
were approximately $2,925,000.
Under the securities purchase agreement, the investors also
had the option to purchase up to an additional $3,000,000 of shares of our common stock and warrants to purchase shares of common
stock during the 60 days following the initial closing. On March 25, 2011, we agreed to extend the option period through April
25, 2011 and entered into an amendment to the securities purchase agreement with the investors. On April 13, 2011, we agreed to
further extend the option period through June 3, 2011 and entered into the second amendment to the securities purchase agreement
with the investors. During the period from March 25 to April 8, 2011, the investors purchased an additional 4,056,000 shares of
our common stock together with warrants to purchase 4,056,000 shares of our common stock pursuant to this option. The purchase
price per share was $0.25, and the exercise of price of such additional warrants will be $0.25 per share. We received aggregate
gross proceeds of $1,014,000 for the purchases from March 25 to April 8, 2011. As of June 2, 2011, an additional $1,986,000 of
shares of our common stock and warrants to purchase shares of our common stock remained available for purchase by the investors
under the second amendment.
50
The exercise price of the warrants issued to the investors in
the initial closing and pursuant to the option is subject to adjustment in the case of stock splits, stock dividends, combinations
of shares and similar recapitalization transactions. The exercise price of the warrants is also subject to an adjustment upon the
occurrence of certain events, including the issuance by us of securities at a price per share less than the exercise price then
in effect. If we issue shares of common stock or options exercisable for or securities convertible into common stock at an effective
price per share of common stock less than the exercise price then in effect, the exercise price will be reduced to the effective
price of the new issuance. Certain issuances of common stock, warrants or options are permitted without triggering the anti-dilution
provisions. These permitted issuances are described in Note 14 to the
Notes to Consolidated Financial Statements
included
elsewhere in this prospectus. In addition, with any reduction to the exercise price, the number of shares of common stock that
may be purchased upon exercise of each warrant will be increased, so that after such adjustment the aggregate warrant exercise
price payable for the adjusted number of shares issuable upon exercise will be the same as the aggregate warrant exercise price
in effect immediately prior to such adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been
reclassified on Generex's balance sheet as a liability under the caption "Derivative Warrant Liability" with
any changes in fair value at each reporting period recorded in earnings in accordance with ASC 815, as described in Note 13 to
the
Notes to Consolidated Financial Statements
included elsewhere in this registration statement.
In addition, with very limited exceptions, the investors will
have a pro rata right of first refusal in respect of participation in any private debt or equity financings undertaken by us during
the 12 months following the initial closing.
In consideration for introducing us to the investors that entered
into the January 24, 2011 securities purchase agreement, we paid Seahawk Capital Partners, Inc., a finders' fee equal to
8% of the gross proceeds from the initial closing, consisting of 2% in cash ($60,000) and 6% in shares of common stock based on
a per share price of $0.25 (720,000 shares).
The offering and sale, including the issuance of shares to Seahawk,
was made pursuant to our shelf registration statement on Form S-3 (File No. 333-164591).
Financing– July 2011
Series A 9% Convertible Preferred Stock and Warrants
On July 8, 2011, we entered into a securities purchase agreement
with certain investors, pursuant to which we agreed to sell an aggregate of 2,575 shares of our non-voting Series A 9% Convertible
Preferred Stock and warrants to purchase up to an aggregate of 100% of the shares of our common stock issuable upon conversion
of the convertible preferred stock at the initial closing. The convertible preferred stock and warrants were sold in units, with
each unit consisting of one share of convertible preferred stock and a warrant to purchase 100% of the shares of our common stock
issuable upon conversion of such share of convertible preferred stock. Each unit was sold at a negotiated price of $1,000, for
an aggregate purchase price of $2,575,000 at the initial closing. An aggregate of 34,333,334 shares of our common stock were issuable
upon conversion of, or exercise of, the convertible preferred stock and warrants issued at the initial closing.
Subject to certain ownership limitations, the convertible preferred
stock is convertible at the option of the holder at any time into shares of the our common stock at an effective conversion price
of $0.08 per share, and will accrue a 9% dividend until July 8, 2014 and, beginning on July 8, 2014 and on each one year anniversary
thereafter, such dividend rate will increase by an additional 3%. The dividend will be payable quarterly on September 30, December
31, March 31 and June 30, beginning on September 30, 2011 and on each conversion date in cash, or at the our option, in shares
of common stock. In the event that the convertible preferred stock is converted prior to July 8, 2014, we will pay the holder of
the converted preferred stock an amount equal to $270 per $1,000 of stated value of the convertible preferred stock, less the amount
of all prior quarterly dividends paid on such converted preferred stock before the relevant conversion date. Such "make-whole
payment" may be made in cash or, at our option, in shares of our common stock. In addition, beginning July 8, 2014, we will
pay dividends on shares of preferred stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends
(other than dividends in the form of common stock) actually paid on shares of the common stock when, and if such dividends are
paid. We will incur a late fee of 18% per annum on unpaid dividends.
51
The conversion price of the convertible preferred stock is subject
to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain
pro-rata distributions to common stockholders. The conversion price will also be adjusted if we sell or grant any shares of common
stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower than the
then conversion price, except in the event of certain exempt issuances. In addition, the holders of convertible preferred stock
will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata to the
holders of its common stock to the same extent as if such holders had converted all of their shares of convertible preferred stock.
In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations
or recapitalizations, the holders of convertible preferred stock will be entitled to receive, upon conversion of their shares,
any securities or other consideration received by the holders of our common stock pursuant to the fundamental transaction.
We may become obligated to redeem the convertible preferred
stock in cash upon the occurrence of certain triggering events, including the failure to provide an effective registration statement
covering shares of common stock issuable upon conversion of the convertible preferred stock, material breach of certain contractual
obligations to the holders of the convertible preferred stock, the occurrence of a change in control, the occurrence of certain
insolvency events, or the failure of our common stock to continue to be listed or quoted for trading on one or more specified United
States securities exchanges or regulated quotation service. Upon the occurrence of certain triggering events, each holder of convertible
preferred stock will have the option to redeem such holder's shares of convertible preferred stock for a redemption price
payable in shares of common stock or receive an increased dividend rate of 18% on all of such holder's outstanding convertible
preferred stock. If the holders of shares of outstanding convertible preferred stock exercised such redemption right, we anticipate
that we would be obligated to issue approximately 12 million shares of common stock, in the aggregate, to such holders in consideration
of the redemption price based on the current number of 620 shares of the convertible preferred stock which have not yet been converted
as of the date of this report using 75% of an estimated stock price of $0.09 per common share and 130% of the aggregate face value
of the currently outstanding convertible preferred stock.
In conjunction with the issuance of the convertible preferred
stock, we also issued 17,166,667 warrants to the investors. Subject to certain ownership limitations, the warrants will be exercisable
at any time after their date of issuance and on or before the fifth-year anniversary thereafter at an exercise price of $0.25 per
share (price adjusted to $0.15 on February 1, 2012 and subsequently to 0.08 on August 10, 2012 in connection with the financings
below) of common stock.
The exercise price of the warrants and, in some cases, the number of shares issuable upon exercise,
are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The exercise price and number of shares of common stock issuable upon
exercise will also be adjusted if we sell or grant any shares of common stock or securities convertible into, or rights to acquire,
common stock at an effective price per share that is lower than the then exercise price, except in the event of certain exempt
issuances. In addition, the warrant holders will be entitled to receive any securities or rights to acquire securities or property
granted or issued by us pro rata to the holders of its common stock to the same extent as if such holders had exercised all of
their warrants. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and
similar reorganizations or recapitalizations, the warrant holders will be entitled to receive, upon exercise of their warrants,
any securities or other consideration received by the holders of our common stock pursuant to the fundamental transaction.
In addition, until the first anniversary of date of the securities
purchase agreement, each investor may, in its sole determination, elect to purchase, severally and not jointly with the other investors,
in one or more purchases, in the ratio of such investor's original subscription amount to the original aggregate subscription amount
of all investors, additional units consisting of convertible preferred stock and warrants at a purchase price of $1,000 per unit
with an aggregate subscription amount thereof of up to $2,575,000, which units will be identical to the units of convertible preferred
stock and warrants issued in connection with the July 2011 closing. As described below, the investors exercised this right in the
transactions that closed on February 1, 2012. See the discussion below under the subheadings
Financing – February 2012
- Series B 9% Convertible Preferred Stock and Warrants.
As of April 30, 2012, 17,166,666 shares of common stock had
been issued upon the conversion of all 2,575 shares of the Series A convertible preferred stock and 6,129,666 shares of common
stock were issued as "make whole payments" on such conversions of the Series A convertible preferred stock. As of September
1, 2012, 6,249,995warrants issued in connection with this transaction were outstanding as follows:
52
Date Issued
Aggregate No.
of
Shares
Unexercised
Exercise
Price
Expiration Date
July 11, 2011*
6,249,995
.08
July 11, 2016
*Upon issuance of securities at a price per share of common
stock less than the then applicable exercise price, the warrants are subject to anti-dilution adjustment of the exercise price
and to the number of shares of common stock that may be purchased upon exercise of each warrant such that the aggregate exercise
price payable upon exercise of the warrant will be the same as the aggregate exercise price in effect immediately prior to such
adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been reclassified on Generex's balance
sheet as a liability under the caption "Derivative Warrant Liability" with any changes in fair value at each reporting
period recorded in earnings in accordance with ASC 815. On August 10, 2012, in connection with the financing below, the exercise
price was adjusted from $0.15 to $0.08 per share.
Financing – February 2012
Series B 9% Convertible Preferred Stock and Warrants
On January 31, 2012, we entered into a securities purchase agreement
with certain investors, pursuant to which we agreed to sell an aggregate of 2,000 shares of our newly designated non-voting Series
B 9% Convertible Preferred Stock and warrants to purchase up to an aggregate of 100% of the shares of our common stock issuable
upon conversion of the convertible preferred stock. The purchase closed on February 1, 2012. We sold the convertible preferred
stock and warrants in units, with each unit consisting of one share of convertible preferred stock and a warrant to purchase 100%
of the shares of the Company's common stock issuable upon conversion of such share of convertible preferred stock. Each unit
was sold at a negotiated price of $1,000, for an aggregate purchase price of $2,000,000. An aggregate of 26,666,666 shares of our
common stock are issuable upon conversion of, or exercise of, the convertible preferred stock and warrants. We received net proceeds
of approximately $1,975,000 from this transaction, which will be reflected in the financial statements for the fiscal quarter ending
April 30, 2012. We entered into this securities purchase agreement pursuant to the investors' additional investment rights
existing under the securities purchase agreement dated July 8 2011.
Subject to certain ownership limitations, the Series B convertible
preferred stock will be convertible at the option of the holder at any time into shares of our common stock at an effective conversion
price of $0.15 per share (adjusted to $0.08 on August 10, 2012), and will accrue a 9% dividend until February 1, 2015 and, beginning
on February 1, 2015 and on each one year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend
will be payable quarterly on September 30, December 31, March 31 and June 30, beginning on the first such date after the original
issue date and on each conversion date in cash, or at our option, in shares of common stock. In the event that the convertible
preferred stock is converted prior to February 1, 2015, we will pay the holder of the converted preferred stock an amount equal
to $270 per $1,000 of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid on
such converted preferred stock before the relevant conversion date. Such "make-whole payment" may be made in cash or,
at our option, in shares of our common stock. In addition, beginning February 1, 2015, we will pay dividends on shares of preferred
stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than dividends in the form
of common stock) actually paid on shares of the common stock when, as and if such dividends are paid. We will incur a late fee
of 18% per annum on unpaid dividends.
The conversion price of the Series B convertible preferred stock
will be subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if we sell or grant any shares
of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then conversion price, except in the event of certain exempt issuances. In addition, the holders of convertible preferred
stock will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata to
the holders of our common stock to the same extent as if such holders had converted all of their shares of convertible preferred
stock. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar
reorganizations or recapitalizations, the holders of convertible preferred stock will be entitled to receive, upon conversion of
their shares, any securities or other consideration received by the holders of our common stock pursuant to the fundamental transaction.
53
We may become obligated to redeem the Series B convertible preferred
stock in cash upon the occurrence of certain triggering events, including, material breach of certain contractual obligations to
the holders of the convertible preferred stock, the occurrence of a change in control of Generex, the occurrence of certain insolvency
events relating to Generex, or the failure of our common stock to continue to be listed or quoted for trading on one or more specified
United States securities exchanges or regulated quotation service. Upon the occurrence of certain triggering events, each holder
of convertible preferred stock will have the option to redeem such holder's shares of convertible preferred stock for a redemption
price payable in shares of common stock or receive an increased dividend rate of 18% on all of such holder's outstanding
convertible preferred stock. Late fees will apply on all redemption amounts not paid within five trading days of the payment date.
Subject to certain ownership limitations, the warrants will
be exercisable at any time after their date of issuance and on or before the fifth-year anniversary thereafter at an exercise price
of $0.15 (price adjusted to $0.08 on August 10, 2012 in connection with the financings below) per share of common stock. The exercise
price of the warrants and, in some cases, the number of shares issuable upon exercise, are subject to adjustment in the case of
stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions
to common stockholders. The exercise price and number of shares of common stock issuable upon exercise will also be adjusted if
we sell or grant any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective
price per share that is lower than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant
holders will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata
to the holders of our common stock to the same extent as if such holders had exercised all of their warrants. In the event of a
fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations,
the warrant holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received
by the holders of common stock pursuant to the fundamental transaction.
The securities purchase agreement and the certificate of designation
authorizing the Series B convertible preferred stock include certain agreements and covenants for the benefit of the holders of
the convertible preferred stock, including restrictions on our ability to amend the certificate of incorporation and bylaws, pay
cash dividends or distributions with respect to our common stock or other junior securities, repurchase more than a
de minimis
number of shares of our common stock or other junior securities.
With very limited exceptions, the investors will have a pro
rata right of first refusal in respect of participation in any private debt or equity financings undertaken by us during the 12
months following the closing of the transaction.
We offered these securities privately pursuant to Rule 506 of
Regulation D under the Securities Act of 1933. We entered into a registration rights agreement with the investors pursuant to which
we agreed to file a registration statement with the SEC covering the public resale of the common stock issuable upon conversion
of the preferred stock, issuable as dividends on the preferred stock, issuable upon exercise of the warrants and issued as a finders'
fee. We agreed to file the registration statement by March 16 and to use our best efforts to have the registration statement declared
effective within 120 days after closing. If these deadlines are not met, we will liable for liquidated damages up to 6% of the
purchase price under the securities purchase agreement.
In addition, if, during the six-month period after the issuance
of the warrants and continuing until such time that all of the securities may be sold without our meeting the current public information
requirement under Securities Act rule 144(c)(1), we fail to meet such requirement, we will pay liquidate damages equal to 2.0%
of the purchase price paid by each investor, payable in cash every 30 days until current public information for Generex is available
or is no longer required for the investors to rely on Rule 144 to transfer the securities (including underlying securities) acquired
under the securities purchase agreement.
Contemporaneous with entering into the securities purchase agreement,
we and the investors also agreed to certain clarifications to the exercise price adjustment provisions under the outstanding warrants
issued in July 2011. Under that agreement, the parties agreed to an exercise price of $0.15 per share for the warrants to purchase
14,500,000 shares of common stock (24,166,664 shares after the anti-dilution adjustment required under the terms of the warrants),
which were in the process of being exercised prior to the parties entering into the securities purchase agreement, and unexercised
outstanding warrants to purchase 2,666,666 shares of common stock (4,444,442 shares following the required anti-dilution adjustment).
54
As of September 1, 2012, 9,602,500 shares of common stock had
been issued upon the conversion of 768 of 2,000 shares of the Series B convertible preferred stock and 2,496,684 shares of common
stock were issued as "make whole payments" on such conversions of the Series B convertible preferred stock. As of September
1, 2012, 24,999,999 warrants issued in connection with this transaction were outstanding as follows:
Date Issued
Aggregate No.
of
Shares
Unexercised
Exercise
Price
Expiration Date
February 1, 2012*
24,999,999
.08
February 1, 2017
*Upon issuance of securities at a price per share of common
stock less than the then applicable exercise price, the warrants are subject to anti-dilution adjustment of the exercise price
and to the number of shares of common stock that may be purchased upon exercise of each warrant such that the aggregate exercise
price payable upon exercise of the warrant will be the same as the aggregate exercise price in effect immediately prior to such
adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been reclassified on Generex's balance
sheet as a liability under the caption "Derivative Warrant Liability" with any changes in fair value at each reporting
period recorded in earnings in accordance with ASC 815. On August 10, 2012, in connection with the financing below, the exercise
price was adjusted from $0.15 to $0.08 per share.
Financing – August 2012
Series C 9% Convertible Preferred Stock and Warrants
On August 8, 2012, we entered into a securities purchase agreement
with certain investors, pursuant to which we agreed to sell an aggregate of 750 shares of our newly designated non-voting Series
C 9% Convertible Preferred Stock and warrants to purchase up to an aggregate of 100% of the shares of our common stock issuable
upon conversion of the convertible preferred stock. The purchase closed on August 10, 2012. We sold the convertible preferred stock
and warrants in units, with each unit consisting of one share of convertible preferred stock and a warrant to purchase 100% of
the shares of the Company's common stock issuable upon conversion of such share of convertible preferred stock. Each unit
was sold at a negotiated price of $1,000, for an aggregate purchase price of $750,000. An aggregate of 18,750,000 shares of our
common stock are issuable upon conversion of, or exercise of, the convertible preferred stock and warrants. We received net proceeds
of approximately $725,000 from this transaction, which will be reflected in the financial statements for the fiscal quarter ending
October 31, 2012. We entered into this securities purchase agreement pursuant to the investors' additional investment rights
existing under the securities purchase agreement dated July 8 2011.
Subject to certain ownership limitations, the Series C convertible
preferred stock will be convertible at the option of the holder at any time into shares of our common stock at an effective conversion
price of $0.08 per share, and will accrue a 9% dividend until August 10, 2015 and, beginning on August 10, 2015 and on each one
year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend will be payable quarterly on September
30, December 31, March 31 and June 30, beginning on the first such date after the original issue date and on each conversion date
in cash, or at our option, in shares of common stock. In the event that the convertible preferred stock is converted prior to August
10, 2015, we will pay the holder of the converted preferred stock an amount equal to $270 per $1,000 of stated value of the convertible
preferred stock, less the amount of all prior quarterly dividends paid on such converted preferred stock before the relevant conversion
date. Such "make-whole payment" may be made in cash or, at our option, in shares of our common stock. In addition,
beginning August 10, 2015, we will pay dividends on shares of preferred stock equal to (on an as-if-converted-to-common-stock basis)
and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock
when, as and if such dividends are paid. We will incur a late fee of 18% per annum on unpaid dividends.
55
The conversion price of the Series C convertible preferred stock
will be subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if we sell or grant any shares
of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then conversion price, except in the event of certain exempt issuances. In addition, the holders of convertible preferred
stock will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata to
the holders of our common stock to the same extent as if such holders had converted all of their shares of convertible preferred
stock. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar
reorganizations or recapitalizations, the holders of convertible preferred stock will be entitled to receive, upon conversion of
their shares, any securities or other consideration received by the holders of our common stock pursuant to the fundamental transaction.
We may become obligated to redeem the Series C convertible preferred
stock in cash upon the occurrence of certain triggering events, including, material breach of certain contractual obligations to
the holders of the convertible preferred stock, the occurrence of a change in control of Generex, the occurrence of certain insolvency
events relating to Generex, or the failure of our common stock to continue to be listed or quoted for trading on one or more specified
United States securities exchanges or regulated quotation service. Upon the occurrence of certain triggering events, each holder
of convertible preferred stock will have the option to redeem such holder's shares of convertible preferred stock for a redemption
price payable in shares of common stock or receive an increased dividend rate of 18% on all of such holder's outstanding
convertible preferred stock. Late fees will apply on all redemption amounts not paid within five trading days of the payment date.
Subject to certain ownership limitations, the warrants will
be exercisable at any time after their date of issuance and on or before the fifth-year anniversary thereafter at an exercise price
of $0.08 per share of common stock. The exercise price of the warrants and, in some cases, the number of shares issuable upon exercise,
are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The exercise price and number of shares of common stock issuable upon
exercise will also be adjusted if we sell or grant any shares of common stock or securities convertible into, or rights to acquire,
common stock at an effective price per share that is lower than the then exercise price, except in the event of certain exempt
issuances. In addition, the warrant holders will be entitled to receive any securities or rights to acquire securities or property
granted or issued by us pro rata to the holders of our common stock to the same extent as if such holders had exercised all of
their warrants. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and
similar reorganizations or recapitalizations, the warrant holders will be entitled to receive, upon exercise of their warrants,
any securities or other consideration received by the holders of common stock pursuant to the fundamental transaction.
The securities purchase agreement and the certificate of designation
authorizing the Series C convertible preferred stock include certain agreements and covenants for the benefit of the holders of
the convertible preferred stock, including restrictions on our ability to amend the certificate of incorporation and bylaws, pay
cash dividends or distributions with respect to our common stock or other junior securities, repurchase more than a
de minimis
number of shares of our common stock or other junior securities.
With very limited exceptions, the investors will have a pro
rata right of first refusal in respect of participation in any private debt or equity financings undertaken by us during the 12
months following the closing of the transaction.
We offered these securities privately pursuant to Rule 506 of
Regulation D under the Securities Act of 1933. We entered into a registration rights agreement with the investors pursuant to which
we agreed to file a registration statement with the SEC covering the public resale of the common stock issuable upon conversion
of the preferred stock, issuable as dividends on the preferred stock, issuable upon exercise of the warrants and issued as a finders'
fee. We agreed to file the registration statement by September 22 and to use our best efforts to have the registration statement
declared effective within 120 days after closing. If these deadlines are not met, we will liable for liquidated damages up to 6%
of the purchase price under the securities purchase agreement.
In addition, if, during the six-month period after the issuance
of the warrants and continuing until such time that all of the securities may be sold without our meeting the current public information
requirement under Securities Act rule 144(c)(1), we fail to meet such requirement, we will pay liquidate damages equal to 2.0%
of the purchase price paid by each investor, payable in cash every 30 days until current public information for Generex is available
or is no longer required for the investors to rely on Rule 144 to transfer the securities (including underlying securities) acquired
under the securities purchase agreement.
56
Proceeds from Warrant Exercises
We may receive additional proceeds from the exercise of warrants
issued in the registered direct offerings conducted in June, August and September 2009, the sales to Seaside 88, LP in April, May
and June 2010, and the warrants issued in connection with the January 2011, July 2011, February 2012 and August 2012 registered
direct offerings and option thereunder, although some of the warrants include a cashless exercise feature.
·
In the transaction that closed on June 15, 2009, we sold shares of common stock and warrants exercisable for up to 8,600,000
shares of our common stock to investors and issued Midtown Partners & Co., LLC, our exclusive placement agent for the transaction,
a warrant to purchase up to 244,926 shares of our common stock.
·
In the August 6, 2009 registered direct offering, we sold shares of common stock and warrants exercisable for up to 2,995,305
shares of our common stock to investors and issued a warrant to purchase 577,666 shares of our common stock to Midtown, which acted
as our exclusive placement agent for the August 2009 transaction.
·
In the transaction that closed on September 14, 2009, we sold an aggregate of 15,312,500 shares of our common stock and warrants
exercisable for up to 5,053,125 shares of our common stock to investors and issued warrants to purchase up to 969,526 shares of
our common stock to the two placement agents and a consultant in relation to the transaction.
·
In the closings under the common stock purchase agreement that occurred in April, May and June 2010, we sold Seaside 12,000,000
shares of our common stock and issued to Midtown, as placement agent, warrants to purchase an aggregate of 300,000 shares of our
common stock
.
·
In connection with the securities purchase agreement dated January 24, 2011 and option thereunder, we sold an aggregate of
16,056,000 shares of our common stock and issued warrants exercisable for up to 16,056,000 shares of our common stock to investors.
·
In connection with the securities purchase agreement dated July 7, 2011 and option thereunder, we sold an aggregate of 2,575
shares of our Series A 9% Convertible Preferred Stock and issued warrants exercisable for up to 17,166,666 shares of our common
stock to investors.
·
In connection with the securities purchase agreement dated January 31, 2012, we sold an aggregate of 2,000 shares of our Series
B 9% Convertible Preferred Stock and issued warrants exercisable for up to 13,333,333 shares of our common stock to investors.
·
In connection with the securities purchase agreement dated August 8, 2012, we sold an aggregate of 750 shares of our Series
C 9% Convertible Preferred Stock and issued warrants exercisable for up to 9,375,000 shares of our common stock to investors.
As of September 1, 2012, all of the warrants issued in the aforementioned
registered direct offerings were exercisable.  At September 1, 2012, outstanding warrants issued in connection with the
June, August and September 2009 registered direct offerings, the April, May and June 2010 sales to Seaside and the January to April
2011, July 2011, February 2012 and August 2012 registered direct offerings were as follows:
57
Date Issued
Aggregate No. of
Shares
Unexercised
Exercise
Price
Expiration Date
June 15, 2009
8,844,926
0.76
December 15, 2014
August 6, 2009
3,572,971
0.79
February 4, 2015
September 14, 2009
6,022,651
1.00
March 15, 2015
April 8, 2010
50,000
0.4726
February 9, 2015
April 21, 2010
50,000
0.4258
February 9, 2015
April 30, 2010
50,000
0.415
February 9, 2015
May 14, 2010
50,000
0.3496
February 9, 2015
May 28, 2010
50,000
0.351
February 9, 2015
June 11, 2010
50,000
0.3543
February 9, 2015
January 25 – April 8, 2011*
7,499,999
**
0.08
January 25, 2016
July 7, 2011*
6,249,995
**
0.08
July 7, 2016
February 1, 2012*
24,999,999
**
0.08
January 31, 2017
August 10, 2012*
9,375,000
0.08
August 10, 2017
*Upon issuance of securities at a price per share of common
stock less than the then applicable exercise price, the warrants are subject to anti-dilution adjustment of the exercise price
and to the number of shares of common stock that may be purchased upon exercise of each warrant such that the aggregate exercise
price payable upon exercise of the warrant will be the same as the aggregate exercise price in effect immediately prior to such
adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been reclassified on Generex's balance
sheet as a liability under the caption "Derivative Warrant Liability" with any changes in fair value at each reporting
period recorded in earnings in accordance with ASC 815.
**On August 10, 2012, in connection with the issuance of
the Series C convertible preferred stock, the exercise price of these warrants was adjusted down to $0.08 (from $0.15), with a
corresponding increase in warrants from 4,000,000 to 7,499,999, 3,333,331 to 6,249,995 and 13,333,333 to 24,999,999, respectively
warrants.
In addition, we may receive additional proceeds from the exercise
of warrants issued in connection with the securities purchase agreement and related documents that we entered into on March 31,
2008 with existing institutional investors relating to a private placement of 8% secured convertible notes (the "Notes")
and warrants (the "Series Warrants") for aggregate gross proceeds to us of $20,650,000.  As of June 1, 2009,
the outstanding principal balance and accrued interest on the Notes were satisfied in full.
The Series Warrants issued in connection with the March 2008
securities purchase agreement included:
(i)
Series A and A-1 Warrants, which are exercisable for a period of 7 years into an aggregate of 75% of the number of shares of
our common stock initially issuable upon conversion of the Notes, with the Series A Warrants being exercisable into 5,257,729 shares
immediately upon issuance and the Series A-1 warrants being exercisable into 7,541,857 shares as of October 1, 2008;
(ii)
Series B Warrants, which became exercisable on October 1, 2008 into 100% of the shares of our common stock initially issuable
upon conversion of the Notes (initially 17,066,166 shares) and remain exercisable for a period of 18 months after the registration
statement covering the shares of common stock issuable upon conversion or exercise of the Notes and Warrants was declared effective
by the SEC; and
(iii)
Series C Warrants, which are exercisable for a period of 7 years as of October 1, 2008, but only to the extent that the Series
B Warrant are exercised and only in the same percentage that the Series B Warrants are exercised, up to a maximum percentage of
75% of the number of shares of our common stock initially issuable upon conversion of the Notes (initially a maximum of 12,799,580
shares).
58
The initial exercise price of each Series Warrant was $1.21.  The
Series Warrants include a cashless exercise feature. The exercise price of the Series Warrants was subsequently reduced initially
to $0.50, then to $0.33, to $0.25, to $0.15 and currently to $0.08 as a result of a price protection provision triggered by our
offering of stock in private placements in May 2009, January and July 2011 and February and August 2012.  This price
protection feature allows for the reduction in the exercise price of the Series Warrants in the event we subsequently issue common
stock or securities convertible into or exercisable for common stock, such as options and warrants, at a price per share less
than the Series Warrant exercise price then in effect. In addition, with any reduction to the Series Warrant exercise price, the
number of shares of common stock that may be purchased upon exercise of each Series Warrant will be increased or decreased proportionately,
so that after such adjustment the aggregate Series Warrant exercise price payable for the adjusted number of shares issuable upon
exercise will be the same as the aggregate Series Warrant exercise price in effect immediately prior to such adjustment. We account
for these warrants with price protection in accordance with ASC 815 as described in Note 13 to the
Notes to Consolidated Financial
Statements
included elsewhere in this registration statement.
As of September 1, 2012, outstanding Series Warrants were as
follows:
Date Issued
Aggregate No. of
Shares Unexercised
Exercise
Price*
Expiration Date
March 31, 2008
54,426,222
$
0.08
March 31, 2016
March 31, 2008
10,227,270
$
0.08
September 30, 2016
*Upon issuance of securities at a price per share of common
stock less than the then applicable exercise price, the warrants are subject to anti-dilution adjustment of the exercise price
and to the number of shares of common stock that may be purchased upon exercise of each warrant such that the aggregate exercise
price payable upon exercise of the warrant will be the same as the aggregate exercise price in effect immediately prior to such
adjustment. Due to the anti-dilution adjustment provision of these warrants, they have been reclassified on Generex's balance
sheet as a liability under the caption "Derivative Warrant Liability" with any changes in fair value at each reporting
period recorded in earnings in accordance with ASC 815.
**On August 10, 2012, in connection with the issuance of
the Series C convertible preferred stock, the exercise price of these warrants was adjusted down to $0.08 (from $0.15), with a
corresponding increase in warrants from 29,027,322 to
54,426,222
and 5,454,544 to10,227,270, respectively warrants.
Cash Flows for the Nine Months ended April 30, 2012
For the nine months ended April 30, 2012, we used $7,158,458
in cash to fund our operating activities. The use for operating activities included a net loss of $7,914,440, changes to working
capital including an increase related to other current assets of $70,693, a decrease of $81,634 in deferred revenue and a decrease
related to accounts payable and accrued expenses of $1,267,420, offset by a decrease of $8,474 in accounts receivable, and a decrease
of $716,415 in inventory.
The use of cash was offset by non-cash expenses of $472,146
related to depreciation and amortization, write-offs related to abandoned patents of $88,582, stock-based compensation to employees
of $125,444, stock-based compensation issued in exchange for services rendered by consultants of $606,545 and common stock issued
for interest on our convertible preferred stock of $347,490. There was also a year-to-date non-cash loss of $1,603,720 related
to the fair valuation of the derivative liabilities at April 30, 2012 and an accounting gain of $1,793,087 related to the sale
of property and equipment (primarily assets held for investment).
We had net cash provided by investing activities of $4,500,712
in the nine months ended April 30, 2012, representing primarily the net proceeds after real estate commissions of $4,534,797 related
to the sale of properties held as investments, as well as sale of other fixed assets for $79,260, offset by payments for property
and equipment of $2,416 and costs incurred for patents of $110,929.
59
We had cash provided by financing activities in the nine months
ended April 30, 2012 of $1,082,549, which pertained to $1,975,000 in net proceeds from sales of convertible preferred stock in
February 2012 and $3,566,088 raised from mortgage loans. This was offset by principal repayments related to our long-term mortgage
debt of $4,488,539, which related primarily to the discharge of mortgages related to the sale of properties held for investment,
while the remainder pertained to regular monthly principal payments. There was also $30,000 received for warrant exercises during
the nine months ended April 30, 2012.
Our net working capital at April 30, 2012 decreased to negative
$7,255,113 from negative $5,568,217 at July 31, 2011, which was attributed largely to our cash used in operations for the nine-month
period ended April 30, 2012, offset by the net proceeds from the sale of two properties held for investment in August 2011, the
series B convertible preferred stock financing in February 2012 and the mortgage financings in January and February 2012.
Cash Flows for the Year Ended July 31, 2011
For the fiscal 2011 year, we used $16,931,368 in cash to fund
our operating activities. The use for operating activities included a net loss of $21,675,867. Cash used in operating activities
decreased due to an increase of $1,811,120 related to accounts payable and accrued expenses, a decrease in inventory of $1,197,768,
a decrease related to other current assets of $116,171 and a decrease of $62,200 in accounts receivable, which were offset by a
$28,152 decrease in deferred revenue.
The use of cash was offset by non-cash increases of approximately
$742,961 related to depreciation and amortization, $1,037,464 in stock-based compensation, amortization of options and option
modifications related to employees, executives and directors, $1,990,005 in stock-based compensation for services rendered and
$35,878 related to a loss on disposal of property and equipment. These non-cash increase adjustments to reconcile the net loss
to net cash used, were offset by a non-cash gain of $2,220,916 related to the revaluation of the derivative warrants.
We had net cash outflows from investing activities of $287,367
in fiscal 2011, primarily consisting of payments for property and equipment of $52,383 and costs incurred for patents of $234,984.
We had net cash flows from financing activities of $6,130,127
in fiscal 2011. We received net proceeds of $3,939,000 from issuances of common stock in our January to April registered direct
offerings.  We received $2,315,000 in net proceeds from sales of convertible preferred stock in July 2011. We received
$577 in cash proceeds from exercises of stock options. We made principal payments on our capital leases and long-term debt of
$124,450.
Our net working capital at July 31, 2011 decreased to negative
$5,568,217 from $8,096,206 at July 31, 2010, which was attributed largely to our net cash outflows from our operating activities,
offset by our fiscal 2011 financing activities.
Conversion of Outstanding Series A and B 9% Convertible
Preferred Stock
As of April 30, 2012, all outstanding shares of our Series A
9% Convertible Preferred Stock were converted into shares of our common stock. As of January 31, 2012, 17,166,666 shares of common
stock had been issued upon the conversion of 2,575 shares of Series A convertible preferred stock. The Series A convertible preferred
stock earned dividends at the rate of 9% per annum, payable quarterly on September 30, December 31, March 31 and June 30. Upon
conversion, we paid the holders of the Series A convertible preferred stock a "make whole" payment equal to $270 per
$1,000 of stated value of the Series A convertible preferred stock, less the amount of all prior quarterly dividends paid on such
converted preferred stock before the relevant conversion date. We issued 6,129,666 additional shares of common stock on such conversions
of the Series A convertible preferred stock. Dividends paid on the Series A Convertible Preferred Stock were $12,383 during the
nine months ended April 30, 2012.
None of the 2,000 shares of our Series B 9% Convertible Preferred
Stock had been converted and no dividends had been paid through April 30, 2012. Between May 1, 2012 and September 6, 2012, 828
shares of our Series B 9% Convertible Preferred Stock have been converted. 9,602, 500 shares of common stock have been issued upon
the conversion of 768 shares of Series B convertible preferred stock and we issued 2,496,684 additional shares of common stock
on such conversions of the Series B convertible preferred as "make whole payments" on the conversions.
60
Funding Requirements
We expect to devote substantial resources to obtaining regulatory
approval of Generex Oral-lyn™ in the U.S., Canada and Europe.  We may also devote resources to obtaining approval
for the importation, marketing and commercialization of Generex Oral-lyn™ in other countries where we have licensed distributors,
including countries where we currently have approval or have submitted regulatory dossiers for approval.
Under the long-term agreement that we signed with sanofi-aventis
in December 2009, sanofi-aventis will manufacture and supply recombinant human insulin to us in the territories specified in the
agreement. Through this agreement, we will procure recombinant human insulin crystals for use in the production of Generex Oral-lyn™.
The terms of the supply agreement required us to make certain minimum purchases of insulin from sanofi-aventis through the period
ended December 31, 2011, which minimum purchases we did not satisfy.
Sanofi-aventis will be our exclusive supplier
in certain countries and a non-exclusive supplier in some other countries. Sanofi-aventis may delete any territory from the agreement
in which Generex Oral-lyn™ has not been approved for commercial sale by December 31, 2011. The prices under the supply agreement
are subject to adjustment beginning after December 31, 2012. As we did not meet the minimum purchase requirements by December 31,
2011, sanofi-aventis may terminate the agreement. Upon termination, we would be obligated to pay sanofi-aventis for all materials
and components that it has acquired or ordered to manufacture insulin based on our forecasts or minimum purchase commitments, all
related work-in-progress (at cost) and all finished insulin in inventory. We did not provide any forecasts to sanofi-aventis and
have not included any accruals related to the purchase commitments in our interim financial statements for the period ended April
30, 2012.
In addition to the resources that we will dedicate to regulatory
approval and commercialization of Generex Oral-lyn™, we will expend resources on further clinical development of our immunotherapeutic
vaccines.
Our future funding requirements and our ability to raise additional
capital will depend on factors that include:
·
the timing and amount of expense incurred to complete our clinical trials, including any additional trials which are required;
·
the costs and timing of the regulatory process as we seek approval of our products in development;
·
the advancement of our products in development;
·
our ability to generate new relationships with industry partners throughout the world that will provide us with regulatory
assistance and long-term commercialization opportunities;
·
opportunities to pursue strategic partnerships through alliances or acquisitions in the consumer market for diabetes-related
products;
·
the timing, receipt and amount of sales, if any, from Generex Oral-lyn™;
·
the cost of manufacturing (paid to third parties) of our licensed products, and the cost of marketing and sales activities
of those products;
·
the costs of prosecuting, maintaining, and enforcing patent claims, if any claims are made;
·
our ability to maintain existing collaborative relationships and establish new relationships as we advance our products in
development; and
·
the receptivity of the financial market to biopharmaceutical companies.
61
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in financial condition, revenue or expenses, results
of operations, liquidity, capital expenditures or capital resources that is material to investors, and we do not have any non-consolidated
special purpose entities.
Contractual Obligations
The following table of contractual obligations as of April 30,
2012 includes interest obligations.
Payments Due by Period
Contractual Obligations
Total
Less than 1
Year
1-3 years
3-5 years
More
than
5 years
Long-Term Debt Obligations
$
2,268,157
$
1,624,702
$
147,710
$
495,745
$
-
Convertible Debt Obligations
-
-
-
-
-
Capital Lease Obligations
-
-
-
-
-
Operating Lease Obligations
124,617
104,674
19,943
-
-
Purchase Obligations *
-
-
-
-
-
Other Long-Term Liabilities Reflected on the Registrant's Balance Sheet under GAAP
-
-
-
-
-
Total
$
2,392,774
$
1,729,376
$
167,653
$
495,745
$
-
* Although there are no minimum purchase
requirements for any of the remaining contract years under Generex's supply agreement with sanofi-aventis entered into on
December 7, 2009, Generex has not fully satisfied the minimum purchase requirements for the contract years ended December 31, 2010
and 2011. To the extent that Generex has any continuing long-term obligations to purchase insulin under this agreement, such obligations
are not included in the table above because the quantities and prices relating to Generex's obligations are subject to confidential
treatment.
Certain Related Party Transactions
On December 9, 2005, our Board of Directors approved the grant
to Ms. Perri of a right of first refusal in respect of any sale, transfer, assignment or other disposition of either or both real
properties municipally known as 1740 Sismet Road, Mississauga, Ontario and 98 Stafford Drive, Brampton, Ontario (collectively,
the "Properties"). We granted Ms. Perri this right in recognition of the fair market value transfer to us during the
fiscal year ended July 31, 1998 by Ms. Perri (or parties related to her) of the Properties. In June 2011, we listed these real
properties for sale and received third party offers for such properties which we accepted conditionally based on Ms. Perri's
existing right of first refusal. Ms. Perri exercised her right of first refusal and the sale of these real properties to Ms. Perri
closed on August 26, 2011 on the same terms as the original third party offer.
Through April 20, 2011, we used a management company to manage
all of our real properties. The property management company is owned by Rose Perri, Anna Gluskin and the estate of Mark Perri.  Ms.
Perri and Ms. Gluskin are former executive officers of Generex.  In the nine-month period ended April 30, 2011 and the
fiscal years ended July 31, 2010 and July 31, 2009, we paid the management company $40,778, $55,691 and $47,981, respectively,
in management fees. We believe that the amounts paid to the management company approximate the rates that would be charged by a
non-affiliated property management company.  On April 20, 2011, we formally terminated the relationship, and no further
property management fees will be paid to this company.
62
During the period from June 2005 to November 2010, Generex paid
Time Release Corp. an aggregate amount of approximately $1,030,000.  During the period from 2006 to 2008, Time Release,
at the direction of Ms. Perri, made payments of at least $285,000 of the funds received from Generex to Angara Investments Limited
and directed certain additional payments to Golden Bull Estates Ltd.  Angara Investments is believed to be owned and
controlled by Ms. Perri and Ms. Gluskin, former executive officers and directors of Generex.  Golden Bull Estates is
controlled by Ms. Perri.  The payments to Time Release were discovered following the termination of Ms. Perri and were
not approved by the Board of Directors of Generex, or any committee thereof, at any time.
During the period from September 2006 through February 2010,
Generex made payments in excess of $700,000 to an Ecuadorian corporation, MediExpress S.A., at the direction of Ms. Perri.  Generex
also paid approximately $385,000 to the principal of MediExpress during the period from August 2004 to December 2010 at the direction
of Ms. Perri.  We are aware that Ms. Perri had other business relationships with Medi-Express' principal, and we
have not been able to determine what business purpose of Generex was served by these payments
The Special Committee of independent members of the Board of
Directors retained outside counsel to investigate the foregoing payments. Based on the foregoing payments and other actions of
Ms. Perri discovered following her termination, Generex has filed a counterclaim to litigation commenced by Ms. Perri against Generex.
See the discussion under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations"
under the heading "Legal Proceedings" and the subheading "Dispute with Former Officer" in this prospectus.
Recently Adopted Accounting Pronouncements
In January 2010, the FASB issued additional guidance on fair
value measurements and disclosures which requires reporting entities to provide information about movements of assets among Levels
1 and 2 of the three-tier fair value hierarchy established by the existing guidance.
The guidance was
effective for our fiscal year beginning August 1, 2011.
The adoption of this guidance did not have a significant impact
on our consolidated financial statements.
In May 2011, the FASB issued further
guidance on fair value measurements and disclosures which requires the categorization by level for items that are only required
to be disclosed at fair value and information about transfers between Level 1 and Level 2. In addition, the update provides guidance
on measuring the fair value of financial instruments managed within a portfolio and the application of premiums and discounts on
fair value measurements. The guidance requires additional disclosure for Level 3 measurements regarding the sensitivity of fair
value to changes in unobservable inputs and any interrelationships between those inputs. The guidance is effective for our interim
period ended April 30, 2012.
The adoption of this guidance did not have a significant impact on our consolidated financial
statements.
Recently Issued Accounting Pronouncements
In June 2011, the FASB issued guidance regarding the presentation
of Comprehensive Income within financial statements. The guidance is effective for annual periods beginning after December 15,
2011 and subsequent interim periods. We are currently evaluating the impact of this new accounting guidance on our consolidated
financial statements.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks associated with changes in the
exchange rates between U.S. and Canadian currencies and with changes in the interest rates related to our fixed rate debt. We do
not believe that any of these risks will have a material impact on our financial condition, results of operations and cash flows.
At the present time, we maintain our cash in short-term government
or government guaranteed instruments, short-term commercial paper, and interest bearing bank deposits or demand bank deposits which
do not earn interest. A substantial majority of these instruments and deposits are denominated in U.S. dollars, with the exception
of funds denominated in Canadian dollars on deposit in Canadian banks to meet short-term operating needs in Canada. We do not presently
employ any hedging or similar strategy intended to mitigate against losses that could be incurred as a result of fluctuations in
the exchange rates between U.S. and Canadian currencies.
63
As of April 30, 2012, we had fixed rate debt totaling $2,051,675.
This amount consists of the following:
Loan Amount
Interest Rate
per Annum
$
604,322
6.75
%
1,447,353
10.00
%
$
2,051,675
Total
These debt instruments mature from January 2013 through May
2015. As our fixed rate debt instruments mature, we will likely refinance such debt at the existing market interest rates which
may be more or less than interest rates on the maturing debt. Since this debt is fixed rate debt, if interest rates were to increase
100 basis points prior to maturity, there would be no impact on earnings or cash flows.
We have neither issued nor own any long-term debt instruments,
or any other financial instruments, for trading purposes to which we would be subject to material market risks.
We have warrants outstanding with price protection provisions
that allow for the reduction in the exercise price of the warrants in the event we subsequently issue common stock or securities
convertible into or exercisable for common stock, such as options and warrants, at a price per share less than the warrant exercise
price then in effect. In addition, with any reduction to the warrant exercise price, the number of shares of common stock that
may be purchased upon exercise of each warrant will be increased proportionately, so that after such adjustment the aggregate warrant
exercise price payable for the adjusted number of shares issuable upon exercise will be the same as the aggregate warrant exercise
price in effect immediately prior to such adjustment. We account for the warrants with price protection in accordance with FASB
ASC 815. We recognize the warrants with price protection in our consolidated balance sheet as liabilities. The warrant liability
is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of operations
under the caption
Change in fair value of derivative warrant liability.
While the change in fair value of the derivative
warrant liability has no effect on our cash flows, the gains or losses can have a significant impact on non-operating income and
expenses and thus the net income or loss. As of April 30, 2012, there were 55,148,530 warrants outstanding subject to price protection
provisions with an estimated fair value of $4,603,470 or $0.084 per warrant. If the estimated fair value of the warrants increases,
there will be a corresponding non-operating expense equal to the change in the value of the liability. Likewise, if the estimated
fair value of the warrants decreases, there will be a corresponding non-operating gain equal to the change in the value of the
liability. There is a directly proportional relationship between the fair value of the warrants and the market price of the stock;
therefore increases or decreases in the market price will lead to corresponding increases or decreases in the value of the warrant
liability and result in losses or gains, respectively, on our consolidated statements of operations.
MANAGEMENT
EXECUTIVE OFFICERS AND DIRECTORS OF THE
REGISTRANT
Name
Age
Position Held with Generex
Mark Fletcher, Esquire
46
President & Chief Executive Officer, General Counsel
Stephen Fellows
46
Acting Chief Financial Officer
David Brusegard
68
Chief Operating Officer, Secretary
John P. Barratt
68
Chairman of the Board
Brian T. McGee
51
Director
Nola E. Masterson
64
Director
Eric von Hofe
57
Director
James H. Anderson
66
Director
64
There are no family relationships among the directors and executive
officers. All directors are elected to hold office until the next annual meeting of stockholders following election and until their
successors are duly elected and qualified. Executive officers are appointed by the Board of Directors and serve at the discretion
of the Board.
Mark
A. Fletcher, Esq
. has served as our President and Chief Executive Officer since March 2011. Mr. Fletcher was elected
to serve as a member of the Board of Directors at our annual meeting of stockholders held on June 8, 2011. Mr. Fletcher was appointed
interim President and Chief Executive Officer on September 29, 2010 to succeed Anna E. Gluskin, who was terminated as President
and Chief Executive Officer on that date. On September 29, 2010, Mr. Fletcher was also appointed Secretary and served as such until
June 8, 2011. He served as Executive Vice President and General Counsel since April 2003, and he continues in his role as General
Counsel. From October 2001 to March 2003, Mr. Fletcher was engaged in the private practice of law as a partner at Goodman and Carr
LLP, a leading Toronto law firm. From March 1993 to September 2001, Mr. Fletcher was a partner at Brans, Lehun, Baldwin LLP, a
law firm in Toronto. Mr. Fletcher received his LL.B. from the University of Western Ontario in 1989 and was admitted to the Ontario
Bar in 1991. The Board believes that Mr. Fletcher's wide-ranging legal knowledge and extensive experience as a practicing
lawyer, his years of experience in the biotech industry, combined with his managerial skills, and business acumen and judgment,
provide our Board with valuable legal and operational expertise and leadership skills.
Stephen
Fellows
has
served as our Acting Chief Financial Officer since
March 2011. Mr. Fellows has served as our Vice President, Finance since June 2009. From August 2005 to December 2008, Mr. Fellows
was employed by Sona Mobile Holdings Corporation, a publicly held software company which developed software applications for mobile
devices, where he served as Chief Financial Officer. From September 1996 to August 2005, Mr. Fellows worked at 3Com Corporation,
where he served in several positions including as the Director of Finance of the corporate accounting group in Marlborough, MA
and Director of Finance & Operations of 3Com's Canadian subsidiary. From January 1992 to August 1996, Mr. Fellows worked
at Pennzoil Corporation where he spent time in the international mergers and acquisitions group in Houston, Texas, as well as four
years as Controller for Pennzoil Canada. Mr. Fellows received a Bachelor of Business Administration degree from Wilfrid Laurier
University in 1988 and earned his Chartered Accountants designation while articling with Arthur Andersen & Company in Toronto
in 1990. The Board believes that Mr. Fellows' business and financial experience, including his previous experience as a Chief
Financial Officer of a public company, combined with his educational background and business judgment provide our Board with valuable
financial expertise and leadership skills.
David
Brusegard, Ph.D.
has served as Chief Operating Officer since March 2011 and was appointed Secretary on June 8, 2011.
Dr. Brusegard served as a consultant to Generex from March 2010 to March 2011. From 2007 to March 29,
2011, Dr. Brusegard held the position of President of The OSLO Group, his consulting firm. He served as Chief Executive Officer
of the Pentius Group from 2004 to 2007. The Pentius Group was a five-company group which designed, sold, and marketed health insurance,
and operated a managed care facility staffed with nurses supervised by physician directors. Pentius Group's company assets
were sold in 2007 to Canam Insurance of Windsor, Ontario. Dr. Brusegard has a breadth of experience in several fields, including,
medical record design, health informatics, health insurance, digital mapping, database design, global positioning systems applications,
business management and strategic planning. He was a senior economist at Statistics Canada for a decade, an adjunct professor at
the University of Toronto and taught information ethics and information law at Ryerson University. He has consulted internationally
on information management for the World Bank as well as major consumer packaged goods companies, hospitals, municipalities, and
all levels of government. Other recent positions of note include; Vice President, Analytics for ICOM Communication and Information,
President of Geographic Decision Support Systems, and CEO, Tristar Software. Dr. Brusegard performed his graduate work at The University
of North Carolina at Chapel Hill, and the University of Calgary from which he holds a Ph.D. Phil., awarded in 1976.
The
board believes that Dr. Brusegard's extensive experience in corporate management, his prior work experience with medical
records, health insurance, data analysis and marketing, combined with his managerial skills and business acumen and judgment, provide
our Board with valuable operational expertise and leadership skills.
65
John P. Barratt.
Independent Director since March
2003 and Chairman of the Board since September 2010. Mr. Barratt is currently a member of the Generex Compensation Committee, the
Generex Audit Committee and the Generex Corporate Governance and Nominating Committee. Mr. Barratt served as the Board Liaison
Officer of The Caldwell Partners International from July 2006 until May 2009. From April 2005 to July 2006, Mr. Barratt served
as Chief Operating Officer of The Caldwell Partners International. The Caldwell Partners International is a Canadian-based human
capital professional services company. Mr. Barratt from January 2002 until February 2007 served as the court-appointed Responsible
Person and Liquidation Manager of Beyond.com Corporation, Debtor-in-Possession, a U.S. Chapter 11 Bankruptcy case, in which capacity
Mr. Barratt reported to the bankruptcy court and to the U.S. Trustee's Office. From September 2000 to January 2002, Mr. Barratt
acted in the capacity of Chief Operating Officer of Beyond.com Corporation, an electronic fulfillment provider. Between 1996 and
2000, Mr. Barratt was partner-in-residence with the Quorum Group of Companies, an international investment partnership specializing
in providing debt and/or equity capital coupled with strategic direction to emerging technology companies. Between 1988 and 1995,
Mr. Barratt held a number of positions with Coscan Development Corporation, a real estate development company, the last position
of which was Executive Vice-President and Chief Operating Officer. Mr. Barratt currently serves on a number of Boards of Directors,
including Brookfield Investments Corporation and BAM Split Corporation, and is a member of the Board of Directors and Chairman
of the Risk Policy Committee of the Bank of China (Canada). Mr. Barratt also serves as Chairman of the Independent Review Committees
of BAM Split Corp. and Brookfield Soundvest Capital Management Ltd. Mr. Barratt is currently the Chief Financial Officer and a
member of the Advisory Board of Crystal Fountains Holdings Inc. and also served as interim Chief Financial Officer of its subsidiary,
Crystal Fountains Inc. from September 2008 to May 2009 and from May 2011 to present. The Board believes that Mr. Barratt's
wide-ranging business experience in various industries, his extensive service as an executive officer and director in various companies,
and his knowledge of finance, combined with his leadership skills and business judgment, provide our Board with valuable financial
and operational expertise and leadership skills.
Nola E. Masterson.
Independent Director since
May 2007. Ms. Masterson is currently the Chair of the Generex Compensation Committee and a member of the Generex Audit Committee
and the Generex Corporate Governance and Nominating Committee. Since 1982, she has been the chief executive officer of Science
Futures Inc., an investment and advisory firm. Ms. Masterson is currently Managing Member and General Partner of Science Futures
Management Co. LLC, which administers several venture funds invested in life science fund of funds and life science companies.
She also serves as Chairwoman of the Board of Directors of Repros Therapeutics Inc. and serves as Chair of the Compensation Committee
and Nominating and Corporate Governance Committee and is a member of the Audit Committee. Repros is a development stage biopharmaceutical
company formerly known as Zonagen, Inc. (currently trading on The NASDAQ Global Market under the symbol "RPRX"). Ms.
Masterson was the first biotechnology analyst on Wall Street, working with Drexel Burnham Lambert and Merrill Lynch, and is a co-founder
and first president of Sequenom, Inc., a genetic analysis company located in San Diego and Hamburg, Germany. She also started the
BioTech Meeting in Laguna Nigel, CA, the annual Biopharmaceutical Conference in Europe, and was nominated to the 100 Irish American
Business List in 2003. Ms. Masterson began her career at Ames Company, a division of Bayer, and spent eight years at Millipore
Corporation in sales and sales management. Ms. Masterson has 34 years of experience in the life science industry. She sits on the
Board of Directors for the American Diabetes Society Silicon Valley chapter, and is Chair Emeritus of the BayBio Institute. She
received her Masters in Biological Sciences from George Washington University, and continued Ph.D. work at the University of Florida.
The Board believes that Ms. Masterson's extensive experience in the life science industry and venture capital and investment
industry, her business experience, including her experience as an executive officer of an investment advisory company and as a
director of a publicly-traded biopharmaceutical company, combined with her business judgment, provide our Board with valuable scientific
and operational expertise.
Brian T. McGee.
Independent Director since March
2004. Mr. McGee is currently the Chairman of the Generex Audit Committee and a member of the Generex Compensation Committee and
the Generex Corporate Governance and Nominating Committee. Mr. McGee has been a partner of Zeifmans LLP ("Zeifmans")
since 1995. Mr. McGee began working at Zeifmans shortly after receiving a B.A. degree in Commerce from the University of Toronto
in 1985. Zeifmans is a Chartered Accounting firm based in Toronto, Ontario. A significant element of Zeifmans' business is
public corporation accounting and auditing. Mr. McGee is a Chartered Accountant. Throughout his career, Mr. McGee has focused on,
among other areas, public corporation accounting and auditing. In 1992, Mr. McGee completed courses focused on International Taxation
and Corporation Reorganizations at the Canadian Institute of Chartered Accountants and in 2003, Mr. McGee completed corporate governance
courses on compensation and audit committees at Harvard Business School. In April 2004 Mr. McGee received his CPA designation from
The American Institute of Certified Public Accountants. Mr. McGee has received a certificate in International Financial Reporting
Standards issued by The Institute of Chartered Accountants in England and Wales in 2010. The Board believes that Mr. McGee's
knowledge and understanding of accounting and finance, his education and training in accounting and corporate governance, and his
extensive experience in the accounting industry, combined with his business acumen and judgment, provide our Board with valuable
accounting and financial expertise.
66
James H. Anderson, Jr., M.D.
Independent Director since June 2011. Dr. Anderson is currently Chairman of the Corporate Governance and Nominating Committee and
a member of the Generex Compensation Committee, and has served on the Generex Scientific Advisory Board since October 2010. Dr.
Anderson is a diabetologist and endocrinologist who has been in the pharmaceutical industry for over 25 years. He is currently
CEO and President of Symcopeia, a private drug discovery and development company focused on new mechanisms of action for the treatment
of diabetes mellitus, and diabetes related obesity and cardiovascular diseases. From 2005 to 2009, Dr. Anderson served as Senior
Medical Director for Diabetes and Cardiometabolic Medicine with Eli Lilly and Company and had medical responsibility for diabetes
and cardiometabolic drug development, and drove the clinical development, registration and launch of two families of diabetes care
products, Humulin
®
and Humalog. At Eli Lilly, Dr. Anderson contributed to the inventions of the first recombinant
DNA produced human insulin analog products, led multiple clinical drug development projects, was responsible for 6 US NDAs and
had clinical responsibility for all insulin products worldwide. Dr. Anderson is an elected Fellow of the Faculty of Pharmaceutical
Medicine of the Royal Colleges of Physicians of the UK, was a founding board member of the American Association of Pharmaceutical
Physicians and is a Fellow of the American College of Endocrinology. Dr. Anderson has been active in the American Diabetes Association
and is a member of the International Diabetes Federation, the European Association for the Study of Diabetes, and the Endocrine
Society. Dr. Anderson is a founding editorial board member of two journals for diabetes, and serves on the editorial boards or
as a reviewer for 5 other diabetes/endocrine journals. Dr. Anderson is a Clinical Associate Professor of Medicine for the Division
of Endocrinology and Metabolism at the Indiana University School of Medicine and was awarded an M.D. from the LSU School of Medicine.
Dr. Anderson attained the rank of Lieutenant Colonel in the US Army Medical Corps and during his military career, he served as
the Chairman, Department of Clinical Investigation at the Army's largest healthcare center, and Chief of the Medical Division
of the US Army Medical Research Institute for Infectious Diseases. Dr. Anderson also serves on the Medical/Scientific Advisory
Boards of Elona Biotechnologies, Inc. and Zimmerman Biotechnologies, LLC. The Board believes that Dr. Anderson's extensive
experience in the pharmaceutical industry, his experience in the diabetes and endocrinology fields, combined with his business
experience and judgment, provide our Board with valuable scientific and operational expertise.
Eric von Hofe, Ph.D.
Director since June 2011.
Dr. von Hofe is currently President of Antigen Express, Inc., a wholly-owned subsidiary of Generex. He has held this position since
2005. Since 2005, he has also been a Vice President of Generex. He has extensive experience with technology development projects,
including his previous position at Millennium Pharmaceuticals as Director of Programs & Operations, Discovery Research. Prior
to that, Dr. von Hofe was Director, New Targets at Hybridon, Inc., where he coordinated in-house and collaborative research that
critically validated gene targets for novel antisense medicines. Dr. von Hofe also held the position of Assistant Professor of
Pharmacology at the University of Massachusetts Medical School, where he received a National Cancer Institute Career Development
Award for defining mechanisms by which alkylating carcinogens create cancers. He received his Ph.D. from the University of Southern
California in Experimental Pathology and was a postdoctoral fellow at both the University of Zurich and Harvard School of Public
Health. His work has been published in forty-eight articles in peer-reviewed journals, and he has been an inventor on four patents.
The Board believes that Dr. von Hofe
's
experience in private and publicly traded companies in
the biotechnology industry, including leadership and management positions and his scientific expertise, together with his practical
understanding of the requirements for success of both therapeutic and technology development, provide the Board with valuable scientific,
business and strategic expertise.
Scientific Advisory Board
In addition to Dr. James H. Anderson, Jr., M.D
.
, the
following individuals are members of the Generex Scientific Advisory Board:
67
Dr. Gerald Bernstein, M.D., F.A.C.P.
has served on the
Scientific Advisory Board since 2001. Dr. Bernstein graduated from Dartmouth College and Tufts University School of medicine. He
is board certified in internal medicine (1966) and endocrinology and metabolism (1973). He entered practice in 1966 after completing
a research fellowship. Dr. Bernstein is an associate clinical professor at Albert Einstein College of Medicine in New York. He
is an attending physician at Beth Israel Medical Center, Lenox Hill Hospital (1974) and Montefiore Medical Center (1966). He served
on the National Board of Directors of the American Diabetes Association, its research foundation and many national committees.
Dr. Bernstein is a past president of the American Diabetes Association and was Director of the Beth Israel Health Care Systems
Diabetes Management Program. He is currently Director of the Diabetes Management Program of The Friedman Diabetes Institute at
Beth Israel Hospital in New York. He served as Vice President for Medical Affairs at Generex Biotechnology Corp. from 2001 to 2011,
and served as a Director of Generex from October 2002 to May 2008.
Dr. Craig Eagle
attended medical school at the University
of New South Wales, Sydney, Australia and received his general internist training at Royal North Shore Hospital in Sydney. He completed
his hemato-oncology and laboratory hematology training at Royal Prince Alfred Hospital in Sydney. He was granted Fellowship in
the Royal Australasian College of Physicians (FRACP) and the Royal College of Pathologists Australasia (FRCPA). After his training
he performed basic research at the Royal Prince of Wales hospital to develop a new monoclonal antibody to inhibit platelets. He
joined Pfizer Australia in 2001 as part of the medical group. In Australia, his role involved leading and participating in scientific
research, regulatory and pricing & re-imbursement negotiations for compounds in therapeutic areas including oncology, anti-infectives,
respiratory, arthritis and pain management. In 2003, Pfizer relocated Dr. Eagle to the United States where he was appointed as
the world wide lead for development of celecoxib in oncology to oversee the global research program. Since that time he has had
increasing responsibility for overseeing the global research plans and teams for irinotecan and dalteparin. In 2007, he became
head of the oncology therapeutic area global medical group for Pfizer, including the US oncology business. Dr. Eagle has led, or
been directly involved with, teams that resulted in eight new products or indications. As part of his current role at Pfizer, he
has led the integration of the Pfizer/Wyeth oncology businesses and portfolio.
Director and Officer Involvement in Certain Legal Proceedings
There are no material proceedings to which any director, executive
officer or affiliate of the Company, any owner of record or beneficial owner of more than five percent of any class of voting securities
of the Company, or any associate of any such director, executive officer, affiliate or security holder is a party adverse to the
Company or has a material interest adverse to the Company. There are no family relationships between any of the Company's
executive officers or directors and there are no arrangements or understandings between a director and any other person pursuant
to which such person was elected as director. There were no material changes to the procedures by which shareholders may recommend
nominees to the Board since the Company's last disclosure of such policies.
To the best of our knowledge, none of the following events have
occurred during the past ten years that are material to an evaluation of the ability or integrity of any director, director nominee
or executive officer of the Company:
·
any bankruptcy petition filed by or against, or any appointment of a receiver, fiscal agent or similar Officer for, the business or property of such person, or any partnership in which such person was a general partner or any corporation of which such person was an executive officer either, in each case, at the time of the filing for bankruptcy or within two years prior to that time;
·
any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
·
being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining such person from, or otherwise limiting, the following activities:
(i)  acting as a futures commission merchant, introducing
broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated
by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter,
broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan
association or insurance company, or
68
(ii)  engaging in or continuing any conduct or practice
in connection with such activity;
(iii) engaging in any type of business practice; or engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal
or state securities laws or federal commodities laws.
·
being found by a court of competent jurisdiction in a civil action, the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or federal commodities law, and the judgment in such civil action or finding by the SEC or the Commodity Futures Trading Commission has not been subsequently reversed, suspended, or vacated;
·
being the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial instructions or insurance companies, including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
·
being the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a) (26) of the Exchange Act), any registered entity (as defined in Section 1(a) (29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or person associated with a member.
Director Independence
The Board of Directors currently consists of six members, four
of whom are "independent" as defined under applicable rules of the SEC and The NASDAQ Stock Market LLC. The four independent
members of the Board of Directors are John P. Barratt, Brian T. McGee, Nola E. Masterson and James H. Anderson.
For a director to be considered independent, the Board must
determine that the director has no relationship which, in the opinion of the Board, would interfere with the exercise of independent
judgment in carrying out the responsibilities of a director.
All members of the Audit Committee, the Compensation Committee
and the Corporate Governance and Nominating Committee must be independent directors under NASDAQ rules. Members of the Audit Committee
also must satisfy a separate SEC independence requirement, which provides that they may not accept directly or indirectly any consulting,
advisory or other compensatory fee from the Company or any of its subsidiaries other than their directors' compensation.
In addition, under SEC rules, an Audit Committee member who is an affiliate of the issuer (other than through service as a director)
cannot be deemed to be independent.
EXECUTIVE COMPENSATION
Compensation, Discussion & Analysis
Compensation Philosophy
We are a development stage company focused
on research, development, and commercialization of our proprietary drug delivery platform for administration of large molecule
drugs to the oral cavity through a hand-held aerosol spray applicator. We are in the process of developing proprietary formulations
of drugs that can be delivered through an oral spray thereby eliminating the need for injections and have focused on our Oral-lyn™
insulin formulation, which is administered as a spray into the oral cavity. We also have a subsidiary, Antigen Express, which focuses
on developing proprietary immunomedicines.
69
As a development stage company, our future
depends on the ability of our executives to obtain necessary regulatory approvals to launch Oral-lyn™ in key markets such
as the United States, Canada, and Europe, as well as furthering the development of other products in our pipeline through the clinical
trial and regulatory process. Attracting, retaining, and motivating key executives who can lead Generex through this process is
critical to our success. We have a small executive team that works together closely. Our executives perform multiple roles and
need to be able to respond to changing market dynamics quickly.
For these reasons, we seek to ensure that
our compensation programs are competitive with similarly sized companies with which we compete for executive talent. The goals
of our executive compensation program are to attract and retain top executives, to motivate executives to achieve our business
objectives, to align executive and shareholder interests, and to recognize individual contributions and overall business success.
During the fiscal year ended July 31, 2011,
the Compensation Committee of the Board of Directors evaluated the types and amounts of compensation that it believed were appropriate
for our President and Chief Executive Officer, our Chief Operating Officer and our Acting Chief Financial Officer, who are considered
Generex's policy making executives and who are listed in the Summary Compensation Table. We refer herein to these executives
as the "named executives."
In addition to the compensation of our
named executives, the Compensation Committee also reviews and approves the compensation of members of our senior management, including
our Vice President, Regulatory Affairs and our Controller, as well as the President of our subsidiary, Antigen Express, Inc.
The Board of Directors appointed three
of the four current members of the Compensation Committee on May 28, 2008 following the 2008 Annual Meeting of the Stockholders
and all three of these members served throughout fiscal 2011. The fourth member was appointed on June 8, 2011 following the 2011
Annual Meeting of the Stockholders. During fiscal 2011, the Compensation Committee convened once to evaluate and discuss compensation
for the named executives with respect to stock awards during the fiscal year ended July 31, 2011, bonuses for the fiscal year ended
July 31, 2010 and base salaries for the calendar year ended December 31, 2011. During the majority of fiscal 2011, the three members
of the Compensation Committee also comprised the Special Committee of the board of directors and met several times as the Special
Committee to discuss various compensation and executive personnel matters, including the terminations of Ms. Gluskin and Ms. Perri
and the appointments of Mr. Fletcher, Mr. Fellows and Dr. Brusegard to their respective positions.
Historically, the key components of our
executive compensation have been base salary, cash bonuses, and equity incentives, including stock bonuses, restricted stock, and
stock options awarded at the discretion of our Compensation Committee and Board of Directors. As a development stage company, we
have reviewed compensation of our named executives annually and at the discretion of the Compensation Committee as warranted by
our financial condition and achievement of our business goals. While the elements of compensation are considered separately, the
Compensation Committee ultimately considers the value of the total compensation package provided to the individual named executive.
The Compensation Committee believes the
company's compensation program must take into account the following factors:
•
past levels of compensation adjustments;
•
the expected transition of the company from a development stage company to an operating company;
•
the nature of the regulatory approval process for the company's products; and
•
the potential for growth of the company in the event
that regulatory approvals are obtained.
In fiscal 2011, the Compensation Committee
reviewed and implemented changes in base salaries for certain of the named executives, upon their appointment to new positions
in fiscal 2011 and awarded equity incentive awards to the named executives primarily in recognition of efforts made to stabilize
the company and effect the company's reorganization plan. The Compensation Committee did not award any of the named executives
cash bonuses during fiscal 2011 for fiscal 2010 performance and contributions. The Compensation Committee has not made any determinations
as to bonuses or equity awards for the named executives with respect to performance or contributions for the fiscal year ended
July 31, 2011, but the Compensation Committee expects to consider the matter in the future during fiscal 2012.
70
In administering the executive compensation
program, our Compensation Committee has relied upon market data provided on a periodic basis by external consultants, as well as
its own understanding and assessment of executive compensation trends. In its consideration of compensation for the named executives,
the Compensation Committee has reviewed compensation data for pharmaceutical and biotechnology companies, market data provided
by external compensation consultants, compensation data compiled by a third-party compensation data firm and publicly available
executive compensation data for publicly traded companies.
Use of Compensation Consultant and Benchmarking
In the fiscal year ended July 31, 2011,
the Compensation Committee did not engage any compensation consultants or engage in benchmarking activities, however in November
2009, the Compensation Committee undertook a comprehensive review of compensation for the then named executives which has been
considered when making salary recommendations in the fiscal year ended July 31, 2011. As part of the previous fiscal year review
the Compensation Committee engaged a compensation consultant, J. Thelander Consulting. A significant portion of the consultant's
review consisted of benchmarking Generex's then named executive compensation against similar positions at public companies
in the biotechnology and pharmaceutical industry. The list of companies considered primarily had market capitalizations between
$80 and $160 million which was considered comparable to Generex's market capitalization at that time. In addition, one other
company was considered which had a market capitalization in excess of $1 billion, as it had been considered in past compensation
studies and as its primary product is somewhat similar to Generex's Oral-lyn™, in that it is also a drug delivery system
for insulin. The companies considered in the consultant's report included the following:
Market capitalization between $80 and
$160 million
·
ArQule (ARQL)
·
Progenix Pharmaceuticals, Inc. (PGNX)
·
Idenix Pharmaceuticals, Inc. (IDIX)
·
Discovery Laboratories, Inc. (DSCO)
·
Ideera Pharmaceuticals, Inc. (IDRA)
Market capitalization greater than $1
billion
·
Mannkind (MNKD)
The consultant's report concluded
that base salaries for the then named executives were at or above average compared to the benchmarked companies, while bonus targets,
equity incentive compensation and overall total compensation (i.e. base salary, bonuses and equity compensation combined) were
below average. The Compensation Committee reviewed and considered the consultant's fiscal 2010 report
when
making decisions regarding compensation changes and levels for the new named executives in fiscal 2011, but the
Compensation
Committee members exercised discretion and formulated
their own conclusions when the Committee determined
the compensation components discussed below.
Determination of Compensation
The Compensation Committee typically makes compensation determinations,
including any increases in base salary for the next calendar year and any bonuses in respect of the prior fiscal year, before or
during the first calendar quarter of each year. The Compensation Committee follows such a schedule in order to eliminate the need
to award retroactive salary increases. In addition, the Compensation Committee intends to review compensation arrangements in the
first calendar quarter to ensure that compensation levels are appropriate in light of Generex's financial position and performance
at that time. Due to the changes in management in fiscal 2011, including the terminations of the previous President and Chief Executive
Officer and the Chief Financial Officer and Chief Operations Officer, as well as
the appointment of
our
Executive Vice President and General Counsel to interim President and Chief Executive Officer in September 2010 and
to President and Chief Executive Officer in March 2011
, the appointment of our VP Finance to Acting
Chief Financial Officer in March 2011 and the appointment of our Chief Operating Officer in March 2011
, the Committee did
not follow such a schedule in fiscal 2011.
71
In considering whether to award bonuses
in respect of fiscal year 2010 or to make changes to base compensation for calendar year 2011, in addition to the compensation
consultant's report from fiscal 2010, the Compensation Committee also reviewed publicly available executive compensation
information for Generex's peer companies, executive compensation information as reported in biotechnology and pharmaceutical
industry publications, unique aspects of each executive's roles within Generex, including multiple roles performed by each
named executive, as well as contribution and performance of individual named executives towards achievement of overall company
performance, and alignment with shareholder expectations.
Components of Compensation
Base Salary
Base salary provides a fixed amount of
compensation necessary to attract and retain key executives. It is guaranteed compensation to the named executives for performance
of core duties. Base salaries for the named executives may be adjusted upon recommendation by the Compensation Committee and ratification
by the Board of Directors. Historically, annual base salaries for the named executives have been reviewed periodically relative
to the base pay levels for each executive's position based on the peer group. The Compensation Committee last undertook such
a review in November 2009. Levels of base salary are generally targeted at the market's second quartile (51% – 75%),
but also reflect the compensation goals adopted by the Compensation Committee, operational goals determined by management, the
named executive's individual performance, contribution of the named executive to overall corporate performance, and the level
of responsibility of the named executive with respect to his or her specific position. The level of base salary also reflects multiple
titles and additional responsibilities of the named executives driven by the operational needs of the company.
Salary adjustments for the President and
Chief Executive Officer and the Acting Chief Financial Officer were last made to base salary compensation in March 2010, which
were made effective retroactive to January 1, 2010. No salary adjustments were made in calendar year 2009. In determining the levels
of the base salary adjustments for the named executives, if any, the Compensation Committee considered the achievement of certain
performance goals by the named executives, including those considered in connection with the award of cash bonuses and enumerated
below.
In September 2010, in connection with the
termination of our former President and Chief Executive Officer, our Executive Vice President and General Counsel was appointed
to interim President and Chief Executive Officer. The Compensation Committee recommended, and the Special Committee of the Board
of Directors approved a base salary adjustment of $150,000 or 46% to $475,000 effective immediately. The increase was considered
appropriate in relation to the assumption of the additional duties and responsibilities of the new role, in addition to his duties
as General Counsel, as well as based on the comparison to peer companies prepared by the compensation consultant in fiscal 2010.
In March 2011, the Compensation Committee
recommended, and the Special Committee of the Board of Directors approved a base salary adjustment of 12.5% for our VP Finance
from $200,000 to $225,000, effective retroactive to January 1, 2011, in connection with his appointment to Acting Chief Financial
Officer. The increase was considered appropriate in relation to the assumption of the additional duties and responsibilities of
the new role.
In March 2011, the Compensation Committee
recommended, and the Special Committee of the Board of Directors approved the hiring and appointment of our Chief Operating Officer
at an annual base salary of $225,000 effective immediately. The base salary was considered appropriate in relation to the salaries
of our other executives.
Cash Bonuses
Performance-based compensation is a key
component of our compensation philosophy. Historically, cash bonuses have been provided to attract, motivate, and retain highly
qualified executives on a competitive basis and provide financial incentives that promote company success. From time to time in
the past, the Compensation Committee has granted bonuses to reward achievement relative to specific performance objectives. In
awarding bonuses, the Compensation Committee considers various factors, including the named executive's position within Generex,
attainment of specific business objectives and performance milestones, and the named executive's individual contributions
thereto. The Committee exercises discretion with respect to the weight that it gives to these and other factors in determining
bonuses. The Compensation Committee also retains discretion with respect to whether any bonuses are paid to the named executives,
the amounts of any such bonuses, and the form of any such bonuses.
72
The Compensation Committee did not grant
or accrue any bonuses in fiscal 2011, with respect to the fiscal year ended July 31, 2010, due to the recent appointments of all
the named executives to their current positions, as well as in consideration of the current financial position of the company.
Long-Term Incentives and Equity Awards
Our compensation program also includes
long-term incentive compensation in the form of equity grants subject to a vesting schedule. We believe such incentive compensation
further aligns the interests of management with those of stockholders and enhances shareholder value. Currently, we do not have
any long-term cash incentive programs in place for the named executives.
Long-term equity incentive grants are discretionary.
In determining whether such grants are warranted, the Compensation Committee considers our compensation strategy, market practice
concerning long-term incentives provided to executives at peer companies and within the broader market, and the named executive's
specific roles within Generex. At the present, equity incentive awards are subject to vesting over a period of time and are not
tied to specific performance measures.
Equity grants have historically been made
through stock options under our various plans, including Generex's 2000 Stock Option Plan, 2001 Stock Option Plan, as amended,
and Amended and Restated 2006 Stock Plan, which also allows grants of restricted stock. We consider the costs to the company of
granting stock options under Statement of Financial Accounting Standard (SFAS) 123(R) as compared to the costs to named executives
of higher income tax liabilities associated with the granting of restricted stock.
In March 2011, the Compensation Committee
recommended, and the Special Committee of the board of directors approved, the following discretionary awards of options to purchase
shares of our common stock to our named executives:
Named Executive
No. of Shares Underlying Options
Mr. Fletcher
1,500,000
Mr. Fellows
200,000
Dr. Brusegard
200,000
The award to Mr. Fletcher were made pursuant
to the 2006 Stock Plan (1,100,000 options) and pursuant to the 2001 Stock Option Plan (400,000 options). The awards to Mr. Fellows
and Dr. Brusegard were made pursuant to the 2001 Stock Option Plan.
The stock options have an exercise
price equal to $0.282 per share, the closing price of the Company's common stock on the OTC Bulletin Board on March 25, 2011.
The options awarded were fully vested at the date of grant and shall expire on the fifth anniversary of the date of grant, subject
to earlier termination under the terms set forth in the 2001 Stock Option Plan or
subject to truncation upon cessation of
employment as specified in the 2006 Stock Plan (as applicable).
The Compensation Committee recommended
these option grants
in recognition of efforts made to stabilize the Corporation and create a reorganization
plan involving, among other possible actions, a reverse stock split of the common stock of the Corporation, par value $0.001 per
share (the "Common Stock"), listing of the Corporation's Common Stock on a national stock exchange, spin-out
of Antigen Express, Inc., and a rights offering to the Corporation's stockholders (the "Reorganization Plan")
and as an incentive for the successful implementation of the Reorganization Plan.
Benefits and Perquisites
Named executives may participate in benefit
plans that are offered generally to salaried employees such as short and long term disability, health and welfare benefits, and
paid time off
.
73
We provide very limited perquisites. During
fiscal 2011, subsequent to his appointment as interim President and Chief Executive Office on September 29, 2010, we provided our
President and Chief Executive Officer a car allowance with an estimated value of $800 per month to compensate use of his car for
business purposes. During fiscal 2011, up to the dates of their respective terminations on September 29, 2010 and March 25, 2011,
respectively, we provided our former President and Chief Executive Officer and our former Chief Operating Officer and Chief Financial
Officer a car allowance with an estimated value of $800 per month to compensate use of their cars for business purposes.
We do not offer deferred compensation plans,
defined benefit plans, supplemental executive retirement plans, supplemental life insurance, benefit restoration plans, or tax
gross-ups on change-in-control benefits
.
Employment and Severance Agreements
During fiscal 2011, we had terms of employment
covering our President and Chief Executive Officer, as described in "Employment Agreements and Potential Payments Upon Termination
or Change-In-Control", which clarify the terms and conditions of his employment. These terms provide clarity concerning the
employment relationship and provide a competitive benefit level to the executive, thus promoting stability at the President and
Chief Executive Officer position.
We have agreed to provide severance benefits
to the President and Chief Executive Officer as set forth in the terms of his employment. The intent of such severance is to provide
the President and Chief Executive Officer with financial security in the event of a covered termination (including change in control)
and to thus support executive retention. To be eligible for certain benefits, including cash payments, under these arrangements,
a named executive must experience a covered termination, which may include a change in control, a material reduction in executive
compensation, a material change in duties, or a material breach in the agreement by Generex. The benefits payable to our President
and Chief Executive Officer upon a change in control of Generex require two conditions, or "double triggers," to be
satisfied: the change in control must occur, and the named executive's employment must be terminated, voluntarily or involuntarily,
as a result of such event. Under the terms of employment, our President and Chief Executive Officer would receive a benefit upon
a change in control only if he terminates his employment in connection with such event.
As of the end of fiscal 2011, each of the
current named executive officers held stock options or restricted stock granted pursuant to either the 2001 Stock Option Plan or
the 2006 Stock Plan. The 2001 Plan provides that outstanding options will become immediately exercisable and vested upon a change
in control, unless the Board of Directors or its designee determines otherwise. In the event that Generex will not be the surviving
corporation, the Board or its designee has flexibility under the 2001 Plan to determine how to treat stock options. The 2001 Plan
does not condition the acceleration and vesting of stock options in such an event upon an option holder's termination of
employment; however, the terms of the 2001 Plan provide that, unless otherwise provided by the Board or its designee, an option
holder can exercise outstanding options after the date of his or her termination of employment only if the option holder voluntarily
terminated employment with Generex or was terminated without cause by Generex. Under the terms of the 2006 Plan, unvested stock
options and restricted stock will become exercisable or unrestricted, as applicable, thirty days prior to the change-in-control
event and such acceleration is not conditioned upon the termination of a participant's employment with Generex. The 2006
Plan further provides that if Generex is not the surviving corporation as a result of a change in control, all outstanding options
that are not exercised will be assumed by, or replaced with comparable options or rights by, the surviving corporation, and outstanding
grants of restricted stock will be converted to similar grants of equity in the surviving corporation.
Tax and Accounting Considerations
The Compensation Committee considers implications
of tax and accounting requirements impacting compensation programs from the perspective of the company and the individual named
executive officers. The Compensation Committee may also consider sections of the tax code which impact Generex or individual taxpayers.
For U.S. taxpayers, the Committee structures its programs to comply with Section 409A of the Internal Revenue Code.
74
Given the high individual income tax liabilities
which result from the awarding of restricted stock to our executives who are all tax residents of Canada, the Compensation Committee
expects to grant future equity awards in the form of stock options for the foreseeable future.
Compensation Committee Report
The Compensation Committee of Generex Biotechnology Corporation
has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with management and,
based on such review and discussions, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion
and Analysis be included in Generex's Annual Report on Form 10-K for the year ended July 31, 2011 and in Generex's
2012 Proxy Statement.
THE COMPENSATION COMMITTEE
Nola E. Masterson, Chairperson
John P. Barratt
Brian T. McGee
James H. Anderson, Jr.
Executive Compensation Tables
The following executive compensation
tables pertain to the fiscal year ended July 31, 2011. Therefore, the tables contain information relating to the named executives
who served as of the fiscal year end and refer to the positions held by such named executives as of July 31, 2011. On September
29, 2010, the Board of Directors terminated Mrs. Gluskin in her employment as President and Chief Executive and appointed Mark
A. Fletcher as interim President and Chief Executive Officer and Secretary. On that date, the Board also appointed John P. Barratt
as Chairman of the Board. On March 25, 2011, the Board of Directors terminated Ms. Perri in her employment as Chief Financial Officer
and Chief Operations Officer and appointed Mark A. Fletcher as President and Chief Executive Officer, appointed Stephen Fellows
as Acting Chief Financial Officer and appointed David Brusegard as Chief Operations Officer.
Summary Compensation Table
The following table provides information concerning compensation
of Generex's named executives for Generex's last three completed fiscal years ending July 31, 2009, 2010 and 2011.
In respect of fiscal years 2009, 2010 and 2011, the named executives did not receive compensation in the form of non-equity incentive
plan compensation or changes in pension value or non-qualified deferred compensation earnings. Therefore, the table below does
not include columns for these types of compensation.
Name and
Principal Position
Year
Salary
($)
Bonus
($)
Stock
Awards
($)
Option
Awards
($)
All Other
Compensation
($)
Total
($)
Anna E. Gluskin
2011
$
87,500
$
0
$
0
$
1,324
(2)
$
20,389
(3)
$
109,213
Former President and
2010
$
525,000
$
0
$
0
$
324,468
(2)
$
27,846
(3)
$
877,314
Chief Executive Officer
2009
$
525,000
$
0
$
37,750
(1)
$
9,219
(2)
$
23,991
(3)
$
595,960
Rose C. Perri
2011
$
403,992
$
0
$
0
$
28,603
(2)
$
20,389
(3)
$
452,984
Former Chief Operating Officer,
2010
$
420,000
$
0
$
0
$
284,739
(2)
$
27,846
(3)
$
732,585
Chief Financial Officer,
2009
$
420,000
$
0
$
33,031
(1)
$
24,583
(2)
$
23,991
(3)
$
501,605
Treasurer and Secretary
Mark A. Fletcher
2011
$
479,642
(4)
$
0
$
0
$
356,660
(2)(6)
$
0
$
836,302
President and
2010
$
320,833
(4)
$
225,000
$
0
$
233,970
(2)
$
0
$
779,803
Chief Executive Officer
2009
$
315,000
(5)
$
0
$
18,875
(1)
$
0
$
0
$
333,875
Stephen Fellows
2011
$
212,788
(7)
$
0
$
0
$
81,338
(2)(6)
$
0
$
294,126
Acting Chief
2010
$
198,179
(7)
$
0
$
0
$
112,865
(2)(8)
$
0
$
311,044
Financial Officer
2009
$
24,821
(7)
$
0
$
0
$
0
$
0
$
24,821
David Brusegard
2011
$
161,465
(9)
$
0
$
0
$
41,940
(6)
$
0
$
203,405
Chief Operating
2010
$
34,857
(9)
$
0
$
0
$
0
$
0
$
34,857
Officer
2009
$
0
(9)
$
0
$
0
$
0
$
0
$
0
75
*Cash compensation is stated in the table in U.S. dollars.
To the extent any cash compensation was paid in Canadian dollars, it has been converted into U.S. dollars based on the average
Canadian/U.S. dollar exchange rate for the years ended July 31, 2011, July 31, 2010 and July 31, 2009
.
(1) This amount represents the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718 with respect to the fiscal years ended July 31, 2010, 2009 and 2008 for restricted
stock awards granted in August 2007, a portion of which was in respect of fiscal 2007 and was immediately vested. The fair value
is calculated using the closing price of Generex stock on the date of grant. For additional information, refer to Note 15 to our
Consolidated Financial Statements included elsewhere in this prospectus. This amount reflects our accounting expense for these
awards, and does not correspond to the actual value that will be recognized by the named executives.
(2) This amount reflects the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718 for option awards granted in May 2008 and March 2010. Such awards were made pursuant
to the 2006 Stock Plan. Specifically, amounts reflected in this column relate to options to purchase shares of common stock granted
to Ms. Gluskin (50,000 shares) and Ms. Perri (125,000 shares) on May 27, 2008 and options to purchase shares of common stock granted
to Ms. Gluskin (500,000 shares), Ms. Perri (400,000 shares), Mr. Fletcher (300,000 shares) and Mr. Fellows (250,000 shares) on
March 8, 2010. The options vest incrementally over two years. The total fair values of the respective option grants are being
expensed over the two-year vesting periods for the options. We utilize a closed-form model (Black-Scholes) to estimate the fair
value of stock option grants on the date of grant. Assumptions used in the calculation of these amounts are as follows: risk-free
interest rate of 0.12%, expected dividend yield of 0.0%, 10 year expected life of options and expected volatility rate of 105.7%.
Also included in this column is the incremental fair value, computed as of October 20, 2009 in accordance with FASB ASC Topic
718, with respect to the modified options. While these amounts reflect the aggregate grant date fair value computed in accordance
with ASC Topic 718, they may not correspond to the actual value that will be recognized by the option holders. See
Grants of
Plan-Based Awards in Fiscal 2011
for a list of the options for which the expiration dates were extended.
(3) Represent 50% of the management fee paid to the property
management company that manages all of our real estate properties and is owned by Ms. Perri, Ms. Gluskin and the estate of Mark
Perri, our former Chairman of the Board. In addition, Ms. Gluskin and Ms. Perri each received a car allowance with an estimated
value of $800 per month to compensate use of their cars for business purposes, but such amounts have not been included in this
column as the total value of such perquisites is less than $10,000 per named executive for fiscal years 2011, 2010 and 2009.
(4) This amount reflects a base salary of $325,000 earned by
the named executive up until September 28, 2010 and a salary increase to $475,000 as approved by the Special Committee of the
Board on September 29, 2011. The amount also reflects a car allowance of approximately $11,000 USD per year paid to the executive
in Canadian currency.
(5) This amount reflects a base salary of $315,000 earned by
the named executive, as approved by the Board on May 6, 2008 effective retroactively to January 1, 2008.
(6) This amount reflects the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718 for option awards granted in March 2011. Such awards were made pursuant to the
2001 and 2006 Stock Plans. Specifically, amounts reflected in this column relate to options to purchase shares of common stock
Mr. Fletcher (400,000 shares under 2001 Stock Option Plan and 1,100,000 shares under 2006 Stock option Plan), Dr. Brusegard and
Mr. Fellows (200,000 shares each under 2001 Stock Option Plan) on March 29, 2011. The options vested upon the grant. We utilize
a closed-form model (Black-Scholes) to estimate the fair value of stock option grants on the date of grant. Assumptions used in
the calculation of these amounts are as follows: risk-free interest rate of 0.013%, expected dividend yield of 0.0%, 5 year expected
life of options and expected volatility rate of 101%.
(7) This amount reflects a base salary of $175,000 earned by
the named executive until December 31, 2009, a salary of $200,000 earned by the named executive from January 1, 2010 until December
31, 2010 and a salary increase to $225,000 retroactive as of January 1, 2011 as approved by the Special Committee of the Board
on March 25, 2011.
(8) This amount represents the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718 with respect to the fiscal years ended July 31, 2011, 2010 and 2009 for options
awards granted in October 2009. The total fair values of the respective option grants are being expensed over the four-year vesting
periods for the options. We utilize a closed-form model (Black-Scholes) to estimate the fair value of stock option grants on the
date of grant. Assumptions used in the calculation of these amounts are as follows: risk-free interest rate of 0.14%, expected
dividend yield of 0.0%, 5 year expected life of options and expected volatility rate of 104%.
(9) This amount reflects a base salary of $225,000 earned by
the named executive from March 25, 2011, as approved by the Special Committee of the Board on March 25, 2011. Also includes consulting
fees paid to named executive in respect to fiscal years ended July 31, 2011 and 2010, prior to his appointment to the position
of Chief Operating Officer on March 25, 2011.
Grants of Plan-Based Awards in Fiscal
2011
The following table provides information
about equity awards granted to the named executives or modified in the fiscal year ended July 31, 2011, including: (1) the grant
date; (2) the number of shares underlying stock options awarded to the named executives, (3) the number of shares underlying existing
stock options the terms of which were extended, (4) the exercise price of the stock options awarded or extended, and (5) the grant
date fair value of each equity award computed under FASB ASC 718.
76
Name
Grant Date
All Other Option
Awards: Number of
Securities
Underlying Options
(#)
Exercise Price or
Base Price of
Option Awards
($/Sh)
Grant Date Fair
Value of Stock
and Option
Awards
Mark Fletcher, President & Chief Executive Officer
March 25, 2011
1,500,000
(1)
$
0.282
(2)
$
0.2097
(3)
Stephen Fellows, Acting Chief Financial Officer
March 25, 2011
200,000
(4)
$
0.282
(2)
$
0.2097
(3)
David Brusegard, Chief Operating Officer
March 25, 2011
200,000
(4)
$
0.282
(2)
$
0.2097
(3)
(1)
The options were granted on March 25, 2011 pursuant to the terms of our 2006 Stock Plan (1,100,000 options) and pursuant to
the terms of our 2001 Stock Option Plan (400,000). The options vested immediately upon the date of the grant.
(2)
The options have an exercise price equal to the official closing price of our common stock on OTC bulletin board on the date
of grant ($0.282 per share).
(3)
This column shows fair value of the options calculated using the Black Scholes value on the grant date of $0.2097. See note
6 of the Summary Compensation Table for a discussion of fair value calculation related to the options and the valuation assumptions
made with respect to the options.
(4)
The options were granted on March 25, 2011 pursuant to the terms of our 2001 Stock Option Plan. The options vested immediately
upon the date of the grant.
Compensation Elements; Employment Agreements and Agreements
Providing Payments Upon Retirement, Termination or Change in Control for Named Executives
Historically, the key components of our executive compensation
have been base salary, cash bonuses, and equity incentives, including stock bonuses, restricted stock, and stock options awarded
at the discretion of our Compensation Committee and Board of Directors. As a development stage company, we have reviewed compensation
of our executive management team from time to time and at the discretion of the Compensation Committee when warranted by our financial
condition and achievement of our business goals.
Set forth below are the material terms of employment for the
President and Chief Executive Officer as of the end of fiscal 2011. The terms of employment provide for certain payments upon retirement,
termination or change in control. Such benefits are in addition to benefits available generally to salaried employees who joined
the company prior to 2011, such as distributions under the 401(k) savings plan, disability and death benefits and accrued vacation
pay.
Terms of Employment for Mr. Fletcher
On March 17, 2003, our Board of Directors approved the terms
and conditions of Mr. Fletcher's employment, prior to his joining Generex on or about April 21, 2003. Pursuant to the terms
of his employment, Mr. Fletcher holds the position of Executive Vice President and General Counsel. Subject to termination in accordance
with the terms and conditions of his employment, Mr. Fletcher's term of service extends through March 16, 2008, which term has
not been formally extended to date. Mr. Fletcher is entitled to receive annual base compensation and may receive additional cash
bonuses at the discretion of the Board of Directors.
On September 29, 2010, Generex and Mr. Fletcher agreed to amend
the terms of Mr. Fletcher's employment to provide that the replacement of Ms. Gluskin as a director or Chief Executive Officer
will not constitute a "change of control" and to provide for an increase in Mr. Fletcher's base salary (to $475,000)
upon his appointment as interim Chief Executive Officer.  Under the terms of his employment with Generex, Mr. Fletcher
is entitled to receive annual base compensation and may receive additional cash bonuses at the discretion of the Board.
The terms of his employment provide that Mr. Fletcher will be
bound by standard restrictive covenants prohibiting him from disclosing confidential information about Generex. Either party may
give at least 12 months' notice of non-renewal of the term; if such notice is not given, the term of employment will be indefinite.
77
Generex may terminate its obligations with respect to Mr. Fletcher's
employment as follows:
(i)
upon 30 days written notice;
(ii)
for "cause";
(iii)
in the event of Mr. Fletcher's disability;
(iv)
in the event of Mr. Fletcher's death; or
(v)
in the event of Mr. Fletcher voluntarily resigning.
Mr. Fletcher may terminate his obligations upon 30 days written
notice upon:
(a)
a material change in his duties,
(b)
a material reduction in compensation,
(c)
a material breach or default by Generex, or
(d)
a change in control of Generex.
In the event that Mr. Fletcher terminates his employment voluntarily
(and not under the circumstances described in (a), (b), (c) or (d) above) or Generex terminates his employment under the circumstances
described in (ii), (iii), (iv) or (v) above, Mr. Fletcher will be entitled only to that portion of his base salary due and owing
as of his last day worked, less any amounts owed to Generex. Under these circumstances, he will not be entitled to any bonus or
incentive compensation.
If Generex terminates Mr. Fletcher's employment under
the circumstance described in (i) above (and not for cause, disability or death) or Mr. Fletcher gives notice of termination pursuant
to (a), (b), (c) or (d) above, Mr. Fletcher will be entitled to receive a lump sum severance payment on the termination date in
an amount equal to 18 months of base salary plus the average annual bonus paid to him during each fiscal year of the term
of his employment and he will be entitled to participate in and receive benefits for 18 months after the termination date. Mr.
Fletcher will have 90 days after the eighteenth month anniversary of the termination date to exercise vested options, and all unvested
options that he holds will accelerate and fully vest on the termination date. He has no duty to mitigate his damages based on the
termination of employment.
Outstanding Equity Awards at 2011 Fiscal
Year-End
The following table provides information on the current holdings
of stock option by the named executives. This table includes unexercised and unvested option awards as of July 31, 2011.
Each equity grant is shown separately for each named executive. The vesting schedule for each outstanding award is set forth in
the footnotes to the table. We do not have any current "stock awards" or "equity incentive plans" as defined
in Regulation S-K Item 402(a)(6)(iii); thus, the columns relating to stock awards and equity incentive awards are not included
in the table below.
Option Awards
Name
Grant Date
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
Option
Exercise
Price ($)
Option
Expiration
Date
Mark E. Fletcher, Executive Vice
3-25-2011
1,500,000
(1)
0
$
0.282
3-25-2016
President and
3-8-2010
300,000
(2)
0
$
0.64
3-8-2020
General Counsel
12-13-2004
250,000
(3)
0
$
0.61
10-26-2014
4-5-2005
327,869
(4)
0
$
0.001
10-26-2014
4-5-2005
142,857
(5)
0
$
0.001
10-26-2014
Stephen Fellows,
3-25-2011
200,000
(1)
0
$
0.282
3-25-2016
Acting Chief
3-8-2010
250,000
(2)
0
$
0.64
3-8-2020
Financial Officer
10-10-2009
35,000
(6)
26,250
$
0.642
10-10-2014
David Brusegard,
3-25-2011
200,000
(1)
0
$
0.282
3-25-2016
Chief Operating Officer
78
(1)These options were granted on March 25, 2011. The grants
were made pursuant to the terms of our 2001 and 2006 Stock Plans. Specifically, amounts reflected in this column relate to options
to purchase shares of common stock Mr. Fletcher (400,000 shares under 2001 Stock Option Plan and 1,100,000 shares under 2006 Stock
option Plan), Dr. Brusegard and Mr. Fellows (200,000 shares each under 2001 Stock Option Plan). The exercise price per share is
equal to the closing price of Generex common stock on March 25, 2011. These options were exercisable immediately upon their grant.
(2)These options were granted on March 8, 2010. The grants
were made pursuant to the terms of our 2006 Stock Plan. The exercise price per share is equal to the closing price of Generex
common stock on March 8, 2010. The options vested as follows: 33% of the options were exercisable on the date of grant; 33% of
the options became exercisable on August 1, 2010, and the remaining 33% of the options became exercisable on August 1, 2011.
(3)
These stock options
were approved by the Board of Directors on April 5, 2005 with an effective grant date of December 13, 2004. The exercise price
per share is equal to the closing price of Generex common stock on December 13, 2004. These options were exercisable immediately
upon their grant. The fair value of Generex common stock on April 5, 2005 was $0.56 per share. The expiry date of these options
was extended in October 2009 to October 26, 2014.
(4)	These options were granted to Mr. Fletcher representing
a bonus of $200,000 awarded to Mr. Fletcher on April 5, 2005. The number of shares awarded was calculated using the closing price
of the common stock on The NASDAQ Capital Market on December 13, 2004 ($0.61 per share). The options were immediately exercisable
on the date of grant. They were issued under the 2001 Plan. The fair value of Generex common stock on April 5, 2005 was $0.56 per
share. The expiry date of these options was extended in October 2009 to October 26, 2014.
(5)	These options were issued to Mr. Fletcher on April 5,
2005 in satisfaction of retroactive salary adjustment as of August 1, 2004 and unpaid salary amounts accrued through March 31,
2005 ($80,000). The number of shares was calculated using the closing price of the common stock on the NASDAQ Capital Market on
April 4, 2005 ($0.56 per share). The options were immediately exercisable on the date of grant and were issued under the 2001 Plan.
The expiry date of these options was extended in October 2009 to October 26, 2014.
(6)These options were granted on October 10, 2009. The grants
were made pursuant to the terms of our 2006 Stock Plan. The exercise price per share is equal to the closing price of Generex common
stock on October 10, 2009. The options vest equally over a four-year period starting with the first anniversary of the grant on
October 10, 2010.
Option Exercises and Stock Vested in
Fiscal Year 2011
In January 2011, Ms. Perri exercised 576,752 options with an
exercise price of $0.001 per share which were granted on December 13, 2004. None of the named executive officers exercised any
outstanding options in fiscal year 2011.
The following table sets forth the number of shares acquired
and the value realized upon the vesting of restricted stock awards during fiscal year 2011 for each of the named executive officers.
Stock Awards
Name
Number of Shares
Acquired on
Vesting (#)
Value Realized on
Vesting ($) (1)
Stephen Fellows
Acting Chief Financial Officer
8,750
$
0
(1)
Value realized on vesting is based on the fair market value of our common stock on the date of vesting and does not necessarily reflect proceeds actually received by the named executive.
Nonqualified Deferred Compensation
Other Benefit Plans
We have no defined benefit or actuarial pension plans.
79
Potential Payments Upon Termination or
Change-in-Control
The following table shows potential payments to our named executives
under existing employment agreements, plans or arrangements, whether written or unwritten, for various scenarios involving termination
of employment or a change in control, assuming termination on July 31, 2011 and, if applicable, based upon the closing stock
price of Generex common stock on that date. These benefits are in addition to benefits available generally to salaried employees
who joined the company prior to 2011, such as distributions under the 401(k) savings plan, disability and death benefits and accrued
vacation pay.
The following table provides the intrinsic value (that is, the
value based upon Generex's stock price, and in the case of options minus the exercise price) of equity awards that would
become exercisable or vested if the named executive had died or become disabled or been terminated as of July 31, 2011.
The terms of employment for Mr. Fletcher do not provide specific
definitions for the various termination events. For the purposes of the table, below are the standard definitions for certain termination
events as defined in the Amended Generex 2001 Stock Option Plan, which we refer to as the "2001 Plan," and the Amended
and Restated 2006 Stock Plan, which refer to as the "2006 Plan."
"Cause" means that a named executive has:
(i)
breached his or her employment or service contract with Generex;
(ii)
engaged in disloyalty to Generex, including, without limitation, fraud, embezzlement, theft, commission of a felony or proven dishonesty in the course of his or her employment or service;
(iii)
disclosed trade secrets or confidential information of Generex to persons not entitled to receive such information;
(iv)
breached any written confidentiality, non-competition or non-solicitation agreement between the named executive and Generex; or
(v)
has engaged in such other behavior detrimental to the interests of Generex as determined by the Compensation Committee.
"Change in Control" means any of the following:
(i)
a liquidation or dissolution of Generex,
(ii)
a sale of all or substantially all of Generex's assets,
(iii)
a merger in which Generex's stockholders hold less than a majority of the voting stock in the surviving corporation, or
(iv)
when a person or group acquires control of a significant percentage of the voting stock without the approval of the Board of Directors (20% under the 2001 Plan and 50% or more under the 2006 Plan).
"Disability" means being unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result
in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.
Potential Payments Upon Termination or
Change in Control for Named Executives as of July 31, 2011
Name
Benefit
Cause
Without
Cause/Non-
Renewal
Voluntary
Termination
by
Executive
Breach by
Generex (1)
Change in
Control
Disability
Death
Mark A. Fletcher
Cash Payment
$
0
$
1,015,745
(4)
$
0
$
1,015,745
(4)
$
1,015,745
(4)
$
0
(10)
$
0
(10)
Stock
$
0
$
0
$
0
$
0
$
0
$
0
$
0
Stock Options
$
67,031
(2)
$
67,031
(3),(9)
$
67,031
(3)
$
67,031
(3),(9)
$
67,031
(8)
$
67,031
(5)
$
67,031
(6)
Restricted Stock
(11)
$
0
$
0
$
0
$
0
$
0
$
0
$
0
Benefits
$
0
$
0
(7),(4)
$
0
(7)
$
0
(7),(4)
$
0
(7),(4)
$
0
$
0
Total
$
67,031
$
1,082,776
$
67,031
$
1,082,776
$
1,082,776
$
67,031
$
67,031
80
(1)
This termination event includes a material change in duties or material reduction in remuneration of such named executive.
(2)
The options granted on April 5, 2005 (including those effective as of December 13, 2004) survive termination of the named executive's employment. Other options granted to the named executive pursuant to the 2001 Plan and any options granted pursuant to the 2006 Plan would terminate immediately - and shares underlying such options forfeited - upon the named executive's termination for cause.
(3)
The 2001 and 2006 Plans permit a named executive who voluntarily terminates employment with Generex or whose employment is terminated without cause to exercise vested options outstanding at the date of termination for a period of up to 90 days thereafter or the expiration date of the option, whichever is earlier.
(4)
Pursuant to his employment arrangement, if Generex terminates Mr. Fletcher's employment upon written notice (and not for cause, disability or death) or Mr. Fletcher gives notice of termination pursuant to a material change in duties, reduction of remuneration, material default or breach by Generex or change in control of Generex, Mr. Fletcher will be entitled to receive a lump sum severance payment on the termination date in an amount equal to 18 months of base salary plus the average annual bonus paid to him during each fiscal year of the term of his employment and he will be entitled to participate in and receive benefits for 18 months after the termination date.
(5)
The 2001 and 2006 Plans permit a named executive to exercise vested options outstanding at the time of the named executive's cessation of employment due to disability for a period of up to one year thereafter or the expiration of the option, whichever is earlier.
(6)
The 2001 and 2006 Plans permit a named executive's beneficiary to exercise vested options outstanding at the time of the named executive's death for a period of up to one year after death or the expiration date of the option, whichever is earlier.
(7)
The named executive would be entitled to receive health benefits for a period of 18 months after termination of employment. Since these benefits are widely available to salaried employees of Generex, they are excluded from the table above. The total aggregate value of these benefits in each case is below $8,000.
(8)
Upon a change of control, the 2001 and 2006 Plans provide for the acceleration of exercisability and vesting of any outstanding options and removal of all restrictions and conditions on outstanding restricted stock awards, unless otherwise determined by the Board of Directors or its designee. We have assumed for purposes of this column that the named executive will exercise all of his/her fully exercisable and vested options and will receive all shares underlying restricted stock awards in connection with a change of control of Generex, which we have assumed occurred on July 31, 2011.
(9)
Pursuant to the terms of his employment with Generex, if Generex terminates Mr. Fletcher's employment upon written notice (and not for cause, disability or death) or Mr. Fletcher gives notice of termination pursuant to a material change in duties, reduction of remuneration, material default or breach by Generex or change in control of Generex, Mr. Fletcher will have 90 days after the eighteenth month anniversary of the termination date to exercise vested options.
(10)
Each named executive is entitled to receive monthly disability payments and his/her survivor(s) are entitled to receive a lump sum payment upon such named executive's death, in either case up to an amount equal to his/her annual base salary or $100,000, whichever is less. Insurance premiums are paid by Generex and such insurance coverage is widely available to all salaried employees at Generex. Thus, the amounts payable upon the disability or death of the named executive (as well as the premiums paid by Generex) are excluded from the table above.
(11)
The restricted stock award agreement with the named executive officers provides that in the event the named executive ceases to be employed by, or provide service to, us, any unvested shares of restricted stock will be immediately forfeited.  There was no unvested restricted stock as of July 31, 2011.
Non-Employee Directors' Compensation
In fiscal 2011, our policy for compensation of non-employee
directors was as follows.
·
Non-employee directors (other than the non-executive chairman
        of the board) receive an annual cash based retainer. Each non-employee director serving on the Board of Directors as of May 27,
        2008 is entitled to an annual cash retainer of $40,000. Each new non-employee director will initially receive a cash retainer of
        $20,000, increasing to $30,000 for the second year, and $40,000 thereafter.
·
The non-executive chairman of the board receives an annual cash based retainer of $100,000 per year.
·
At the discretion of the full Board of Directors, nonemployee directors may receive stock options to purchase shares of our common stock or shares of restricted stock each fiscal year. The number and terms of such options or shares is within the discretion of the full Board of Directors.
·
Non-employee directors serving on committees of the Board of Directors receive additional cash compensation as follows:
Committee
Chairperson
Member
Audit Committee
$
15,000
$
5,000
Compensation Committee
$
15,000
$
5,000
Governance & Nominating Committee
$
5,000
$
2,000
81
On June 8, 2011, the board amended the policy regarding the
cash-based retainer for non-employee directors such that all non-employee directors will receive an annual retainer of $40,000
effective in the first year they are appointed and in subsequent years of service, effective as of that date.
Directors who are officers or employees of Generex or its subsidiaries
do not receive separate consideration for their service on the Board of Directors. The compensation received by Mr. Fletcher as
an employee of Generex is show in the Summary Compensation Table above. The compensation received by Mr. von Hofe as an employee
of our subsidiary Antigen is shown in the Director Compensation Table below under "All Other Compensation".
Fiscal Year 2011 Director Compensation
Table
Name
Fees
Earned
or Paid
in Cash
(1)
Stock
Awards
(2)
Option
Awards
(3)
All Other
Compensation
Total
John P. Barratt
$
93,666
$
0
$
104,850
$
0
$
198,516
Brian T. McGee
$
62,000
$
0
$
41,940
$
0
$
103,940
Nola E. Masterson
$
55,000
$
0
$
41,940
$
0
$
96,940
James H. Anderson
$
8,400
$
0
$
0
$
40,000
(4)
$
48,400
Eric von Hofe
$
0
$
0
$
41,940
$
260,480
(5)
$
302,420
(1) Includes the annual retainer and additional fees for directors
who chair a Board committee or who serve on a Board committee.
(2)	There were no restricted stock awards to directors in
fiscal year 2011. As of July 31, 2011, the aggregate number of shares underlying stock awards previously granted to each non-employee
director was as follows: Mr. Barratt (150,000), Ms. Masterson (100,000) and Mr. McGee (150,000).
(3) Includes the grant date fair value for options to purchase
200,000 shares of common stock granted to each of Mr. McGee, Ms. Masterson and Dr. von Hofe and options to purchase 500,000 shares
of common stock granted to Mr. Barratt on March 25, 2011, calculated in accordance with FASB ASC Topic 718. The grant date fair
value for these options is based on the Black-Scholes model valuation of $0.2097 per share. The following assumptions were used
in the calculation: expected term of 5 years; a risk-free interest rate of 0.013%; and expected price volatility of 101%. The options
granted on March 25, 2011 vested immediately on the date of grant.
At fiscal year end, the total number of stock options held by
each non-employee director was as follows: Mr. Barratt (805,714), Mr. McGee (505,714), Ms. Masterson (300,000) and Dr. Anderson
(0). Dr. von Hofe, who is an employee of our subsidiary Antigen held, 435,000 at fiscal year-end.
(4) Includes payments received as a member of the Scientific
Advisory Board of $5,000 per month for the period from December 2010 through July 2011.
(5) Represents employment income earned as president of Antigen
for the fiscal year ended July 31, 2011.
CERTAIN
TRANSACTIONS
Changes in Control
We know of no arrangements, including any pledge by any person
of our securities, the operation of which may at a subsequent date result in the change in control of Generex.
Related Transactions
Review of Related Party Transactions
We presently follow an unwritten practice requiring approval
by stockholders or by a majority of disinterested directors of transactions in which one of our directors has a material interest
apart from such director's interest in Generex. We also presently follow a practice requiring the approval by the Audit Committee
for any transactions in which a director or an executive officer has a material interest apart from such director's or officer's
interest in Generex.
82
Related Transactions
On December 9, 2005, our Board of Directors approved the grant
to Ms. Perri of a right of first refusal in respect of any sale, transfer, assignment or other disposition of either or both real
properties municipally known as 1740 Sismet Road, Mississauga, Ontario and 98 Stafford Drive, Brampton, Ontario (collectively,
the "Properties"). We granted Ms. Perri this right in recognition of the fair market value transfer to us during the
fiscal year ended July 31, 1998 by Ms. Perri (or parties related to her) of the Properties. In June 2011, we listed these real
properties for sale and received third party offers for such properties which we accepted conditionally based on Ms. Perri's
existing right of first refusal. Ms. Perri exercised her right of first refusal and the sale of these real properties to Ms. Perri
closed on August 26, 2011 on the same terms as the original third party offer.
Through April 20, 2011, we used a management company to manage
all of our real properties. The property management company is owned by Rose Perri, Anna Gluskin and the estate of Mark Perri.
Ms. Perri and Ms. Gluskin are former executive officers of Generex. In the nine-month period ended April 30, 2011 and the fiscal
years ended July 31, 2010 and July 31, 2009, we paid the management company $40,778, $55,691 and $47,981, respectively, in management
fees. We believe that the amounts paid to the management company approximate the rates that would be charged by a non-affiliated
property management company. On April 20, 2011, we formally terminated the relationship, and no further property management fees
will be paid to this company.
During the period from June 2005 to November 2010, Generex paid
Time Release Corp. an aggregate amount of approximately $1,030,000. During the period from 2006 to 2008, Time Release, at the direction
of Ms. Perri, made payments of at least $285,000 of the funds received from Generex to Angara Investments Limited and directed
certain additional payments to Golden Bull Estates Ltd. Angara Investments is believed to be owned and controlled by Ms. Perri
and Ms. Gluskin, former executive officers and directors of Generex. Golden Bull Estates is controlled by Ms. Perri. The payments
to Time Release were discovered following the termination of Ms. Perri and were not approved by the Board of Directors of Generex,
or any committee thereof, at any time.
During the period from September 2006 through February 2010,
Generex made payments in excess of $700,000 to an Ecuadorian corporation, MediExpress S.A., at the direction of Ms. Perri. Generex
also paid approximately $385,000 to the principal of MediExpress during the period from August 2004 to December 2010 at the direction
of Ms. Perri. We are aware that Ms. Perri had other business relationships with Medi-Express' principal, and we have not
been able to determine what business purpose of Generex was served by these payments.
The Special Committee of independent members of the Board of
Directors retained outside counsel to investigate the foregoing payments.  Based on the foregoing payments and other
actions of Ms. Perri discovered following her termination, Generex has filed a counterclaim to litigation commenced by Ms. Perri
against Generex.  See the discussion under the caption "Management's Discussion and Analysis of Financial
Condition and Results of Operations" under the heading "Legal Proceedings" and the subheading "Dispute
with Former Officer" in this prospectus.
Security
Ownership of Certain Beneficial Owners and Management
The table on the following pages sets forth information regarding
the beneficial ownership of the common stock by our directors and named executive officers (including persons who served as principal
executive officer and principal financial officer during a portion of the fiscal year ended July 31, 2011) and all the
named executives and directors as a group. We are not aware of any person or group that beneficially owns more than five percent
of our outstanding shares of common stock.
The information contained in this table is as of September 6,
2012. At that date, we had 362,799,785 shares of common stock outstanding.
A person is deemed to be a beneficial owner of shares if he
has the power to vote or dispose of the shares. This power can be exclusive or shared, direct or indirect. In addition, a person
is considered by SEC rules to beneficially own shares underlying options or warrants that are presently exercisable or that will
become exercisable within sixty (60) days.
83
Except as otherwise indicated, the address of each person named
in the table below is c/o Generex Biotechnology Corporation, 555 Richmond Street West, Suite 604, Toronto, Canada M5V 3B1.
Beneficial Ownership
Name of Beneficial Owner
Number of
Shares
Percent
of
Class
Named Executives, Directors and Nominees
John P. Barratt (1)
1,943,746
*
Mark Fletcher (2)
4,263,998
1.2
%
Anna E. Gluskin (3)
1,179,794
*
Nola Masterson (4)
858,197
*
Brian T. McGee (5)
1,263,911
*
Rose C. Perri (6)
4,690,554
1.3
%
Dr. James Anderson (7)
409,836
*
Eric von Hofe, Ph.D. (8)
1,021,292
*
Dr. David Brusegard (9)
777,743
*
Stephen Fellows (10)
476,250
*
Named Executives and Directors as a group (10 persons)
16,885,321
4.7
%
* Less than 1%.
(1)	Includes 70,000 shares, 70,000 shares issuable upon stock
options granted on October 26, 2004, 100,000 shares issuable upon exercise of stock options granted on April 5, 2005 under the
2001 Plan, 35,714 shares issuable upon exercise of stock options granted on April 5, 2005 under the 2001 Plan received in lieu
of cash compensation, 100,000 options which were granted on March 8, 2010 under 2006 Plan and 150,000 shares of restricted stock
awarded on May 30, 2006 under the 2006 Plan. Also includes 400,000 options issued March 25, 2011 under the 2001 Stock Option
Plan and 100,000 options issued March 25, 2011 under the 2006 Stock Option Plan and 918,033 options issued June 21, 2012 under
the 2006 Plan.
(2)	Includes 286,077 shares, 250,000 shares issuable upon
exercise of stock options granted on April 5, 2005 with an effective date of December 13, 2004 under the 2001 Plan, 470,726 shares
issuable upon exercise of stock options granted on April 5, 2005 under the 2001 Plan, 300,000 options which were granted on March
8, 2010 under 2006 Plan and 175,000 shares of restricted stock granted in August 2007 under the 2006 Stock Plan, which shares were
vested as of August 17, 2009. Also includes 400,000 options issued March 25, 2011 under the 2001 Stock Option Plan and 1,100,000
options issued March 25, 2011 under the 2006 Stock Option Plan and 1,457,195 options issued June 21, 2012 under the 2006 Plan.
(3)	Includes 26,127 shares held by Ms. Gluskin, 953,667 shares
owned of record by GHI, Inc. that are beneficially owned by Ms. Gluskin, 200,000 shares of restricted stock granted in August 2007
under the 2006 Stock Plan, which shares were vested as of August 17, 2009.
(4)	Includes 100,000 options which were granted on March
8, 2010 under 2006 Plan, 50,000 shares of restricted common stock granted to Ms. Masterson on August 17, 2007 under the 2006 Plan
and 200,000 options issued March 25, 2011 under the 2001 Stock Option Plan and 508,197 options issued June 21, 2012 under the 2006
Plan.
(5)	Includes 70,000 shares issuable upon exercise of stock
options granted on October 26, 2004, 100,000 shares issuable upon exercise of stock options granted on April 5, 2005 under the
2001 Plan, 35,714 shares issuable upon exercise of stock options granted on April 5, 2005 under the 2001 Plan received in lieu
of cash compensation, 100,000 options which were granted on March 8, 2010 under the 2006 Plan and 150,000 shares of restricted
stock awarded on May 30, 2006 under the 2006 Plan. Also includes 100,000 shares acquired in February and March 2006 and 200,000
options issued March 25, 2011 under the 2001 Stock Option Plan and 508,197 options issued June 21, 2012 under the 2006 Plan.
84
(6)	Includes 238,726 shares held by Ms. Perri, 953,667 shares
owned of record by GHI, Inc. that are beneficially owned by Ms. Perri, 576,752 shares issued upon exercise of stock options granted
on April 5, 2005 under the 2001 Plan, 175,000 shares of restricted stock granted in August 2007 under 2006 Stock Plan that were
vested as of August 17, 2009. Also includes the shares that are owned by the estate of Mr. Mark Perri, of which Ms. Perri is executor
and beneficiary, but is not considered to beneficially own for some purposes: 45,914 shares previously owned of record by Mr. Mark
Perri; 1,100,000 shares owned of record by EBI, Inc. (of which Mr. Mark Perri was beneficial owner); 305,332 shares held of record
by brokerage accounts. Also includes 341,496 shares owned of record by EBI, Inc., which Ms. Perri may be deemed to beneficially
own because of the power to vote the shares but which are beneficially owned by other stockholders because they are entitled to
the economic benefits of the shares. Ms. Perri is also deemed to beneficially own an additional 953,667 shares owned of record
by GHI, Inc. by holding the right to vote such shares. These shares are also beneficially owned by Ms. Gluskin.
(7)	Includes 409,836 options issued June 21, 2012 under the
2006 Plan.
(8) Includes 10,000 shares of common stock held by Dr. von Hofe
awarded on March 5, 2007 under the 2006 Plan. Also includes 100,000 shares issuable upon exercise of stock options granted on October
26, 2004, 35,000 shares issuable upon exercise of stock options granted on July 29, 2005, 50,000 vested options of 100,000 options
which were granted on October 10, 2009 under the 2006 Plan and 200,000 options issued March 25, 2011 under the 2001 Stock Option
Plan and 626,292 options issued June 21, 2012 under the 2006 Plan.
(9)	 Includes 31,295 shares of common stock held by Dr. Brusegard
and 200,000 options issued March 25, 2011 under the 2001 Stock Option Plan and 546,448 options issued June 21, 2012 under the 2006
Plan.
(10)	Includes 250,000 options which were granted on March
8, 2010 under the 2006 Plan, 26,250 vested options of 35,000 options which were granted on October 10, 2009 under the 2006 Plan
and 200,000 options issued March 25, 2011 under the 2001 Stock Option Plan.
DESCRIPTION OF SECURITIES TO BE REGISTERED
We are registering shares of our common
stock hereunder which are issued and outstanding, issuable upon conversion of the Series C 9% Convertible Preferred Stock, issuable
upon exercise of warrants issued in connection with the Series C 9% Convertible Preferred Stock, and issuable in lieu of cash payments
on the Series C 9% Convertible Preferred Stock. Therefore, we have provided below a description of our common stock, Series C 9%
Convertible Preferred Stock and related warrants.
Description of Our Capital Stock
Set forth below is a summary of the material
terms of our capital stock. This summary is not complete. We encourage you to read our Restated Certificate of Incorporation, as
amended, and our Amended and Restated By-Laws that we have previously filed with the SEC. See "Where You Can Find More Information."
General
Our authorized capital stock consists of:
(i) 750,000,000 shares of common stock, par value $.001 per share, of which 362,799,785 shares were outstanding as of September
6, 2012, (ii) 5,500 shares of Series A 9% Convertible Preferred Stock, of which 0 shares were outstanding as of September 6, 2012
(iii) 2,000 shares of Series B 9% Convertible Preferred Stock, of which 1,172 shares were outstanding as of September 6, 2012 (iv)
750 shares of Series C 9% Convertible Preferred Stock, of which 750 shares were outstanding as of September 6, 2012and (vi) 991,750
shares of undesignated preferred stock, par value $.001 per share.
85
Common Stock
Holders of common stock are entitled to
one vote for each share owned as of record on all matters on which shareholders may vote.  Holders of common stock do
not have cumulative voting rights in the election of directors.  Therefore, the holders of more than 50% of the outstanding
shares can elect the entire Board of Directors.  The holders of common stock are entitled, upon liquidation or dissolution
of the Company, to receive pro rata all remaining assets available for distribution to stockholders after payment to any preferred
shareholders who may have preferential rights.  The common stock has no preemptive or other subscription rights, and
there are no conversion rights or redemption provisions. All outstanding shares of common stock are validly issued, fully paid,
and nonassessable.
Series C Preferred Stock
The Series C convertible preferred stock is convertible at the
option of the holder at any time into shares of common stock at a conversion ratio determined by dividing the stated value of the
Series C convertible preferred stock, or $1,000, by a conversion price of $0.15 per share. As of September 1, 2012, an aggregate
of 9,375,000 shares of our common stock are issuable upon conversion of the Series C convertible preferred stock. The conversion
price of the Series C convertible preferred stock will be subject to adjustment in the case of stock splits, stock dividends, combinations
of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The conversion price
will also be adjusted if we sell or grant any shares of common stock or securities convertible into, or rights to acquire, common
stock at an effective price per share that is lower than the then conversion price, except in the event of certain exempt issuances.
Subject to limited exceptions, a holder of the Series C convertible preferred stock will not have the right to convert any portion
of its Series C convertible preferred stock if the holder, together with its affiliates, would beneficially own in excess of 4.99%
of the number of shares of our common stock outstanding immediately after giving effect to its conversion.
In addition, the holders of Series C convertible preferred stock
will be entitled to receive any securities or rights to acquire securities or property granted or issued by us pro rata to the
holders of our common stock to the same extent as if such holders had converted all of their shares of Series C convertible preferred
stock. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and similar
reorganizations or recapitalizations, the holders of Series C convertible preferred stock will be entitled to receive, upon conversion
of their shares, any securities or other consideration received by the holders of our common stock pursuant to the fundamental
transaction.
We may become obligated to redeem the Series C convertible preferred
stock in cash upon the occurrence of certain triggering events, including the failure to provide an effective registration statement
covering shares of common stock issuable upon conversion of the Series C convertible preferred stock, material breach of certain
contractual obligations to the holders of the Series C convertible preferred stock, the occurrence of a change in control of the
Company, the occurrence of certain insolvency events relating to the Company, or the failure of our common stock to continue to
be listed or quoted for trading on one or more specified United States securities exchanges or regulated quotation service. Upon
the occurrence of certain triggering events, each holder of Series C convertible preferred stock will have the option to redeem
such holder's shares of Series C convertible preferred stock for a redemption price payable in shares of common stock or
receive an increased dividend rate of 18% on all of such holder's outstanding Series C convertible preferred stock. Late
fees will apply on all redemption amounts not paid within five trading days of the payment date.
The Series C convertible preferred stock will accrue a 9% dividend
until August 10, 2015 and, beginning on August 10, 2015 and on each one year anniversary thereafter, such dividend rate will increase
by an additional 3%. The dividend will be payable quarterly on September 30, December 31, March 31 and June 30, beginning on the
first such date after the original issue date and on each conversion date in cash, or at our option, in shares of common stock.
In the event that the Series C convertible preferred stock is converted prior to August 10, 2015, we will pay the holder of the
converted Series C convertible preferred stock an amount equal to $270 per $1,000 of stated value of the Series C convertible preferred
stock, less the amount of all prior quarterly dividends paid on such converted Series C convertible preferred stock before the
relevant conversion date. Such "make-whole payment" may be made in cash or, at our option, in shares of common stock.
86
Except as required by law, holders of the Series C convertible
preferred stock are not entitled to voting rights, except that the affirmative vote of the holders of a majority of the outstanding
shares of Series C convertible preferred stock is required to take certain actions that may adversely affect the rights or preferences
of the holders of Series C convertible preferred stock.
The securities purchase agreement and the certificate of designation
authorizing the Series C convertible preferred stock include certain agreements and covenants for the benefit of the holders of
the Series C convertible preferred stock, including restrictions on our ability to amend our certificate of incorporation and bylaws,
pay cash dividends or distributions with respect to our common stock or other junior securities, repurchase more than a
de
minimis
number of shares of our common stock or other junior, securities, issue additional equity securities for a period
of 60 days after the initial closing, issue additional debt or equity securities with variable a conversion or exercise price for
a period of 12 months after the initial closing, and undertake a reverse or forward stock split or reclassification of our common
stock (unless such reverse split is made in conjunction with the listing of the common stock on a national securities exchange),
and a requirement to use our reasonable best efforts to maintain the listing or trading of our common stock on one or more specified
United States securities exchanges or regulated quotation service.
Undesignated Preferred Stock
Our Board of Directors has the authority
to issue up to 992,500 shares of preferred stock in one or more series and fix the number of shares constituting any such series,
the voting powers, designations, preferences and relative, participating, optional or other special rights and qualifications,
limitations or restrictions thereof, including the dividend rights, dividend rate, terms of redemption (including sinking fund
provisions), redemption price or prices, conversion rights and liquidation preferences of the shares constituting any series, without
any further vote or action by the stockholders. For example, the Board of Directors is authorized to issue a series of preferred
stock that would have the right to vote, separately or with any other series of preferred stock, on any proposed amendment to our
Restated Certificate of Incorporation, as amended, or on any other proposed corporate action, including business combinations and
other transactions.
The terms of any particular series of preferred
stock will be described in the prospectus supplement relating to the offering of shares of that particular series of preferred
and may include, among other things:
·
the title and stated value;
·
the number of shares authorized;
·
the liquidation preference per share;
·
the purchase price;
·
the dividend rate, period and payment date, and method of calculation (including whether cumulative or non-cumulative);
·
terms and amount of any sinking fund;
·
provisions for redemption or repurchase, if applicable, and any restrictions on the ability of the company to exercise such redemption and repurchase rights;
·
conversion rights and rates, if applicable, including the conversion price and how and when it will be calculated and adjusted;
·
voting rights, if any;
·
preemptive rights, if any;
·
restrictions on sale, transfer and assignment, if any;
·
the relative ranking and preferences of the preferred stock; and
·
any other specific terms, rights or limitations of, or restrictions on, such preferred stock.
87
Warrants
An aggregate of 9,375,000 shares of our common stock are issuable
upon exercise of the warrants issued on August 10, 2012 in connection with the issuance of the Series C convertible preferred stock.
Subject to certain ownership limitations, the warrants will
be exercisable at any time after their date of issuance and on or before the fifth-year anniversary thereafter at an exercise price
of $0.08 per share of common stock. The exercise price of the warrants and, in some cases, the number of shares issuable upon exercise,
are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions
and certain pro-rata distributions to common stockholders. The exercise price and number of shares of common stock issuable upon
exercise will also be adjusted if we sell or grant any shares of common stock or securities convertible into, or rights to acquire,
common stock at an effective price per share that is lower than the then exercise price, except in the event of certain exempt
issuances. In addition, the warrant holders will be entitled to receive any securities or rights to acquire securities or property
granted or issued by us pro rata to the holders of our common stock to the same extent as if such holders had exercised all of
their warrants. In the event of a fundamental transaction, such as a merger, consolidation, sale of substantially all assets and
similar reorganizations or recapitalizations, the warrant holders will be entitled to receive, upon exercise of their warrants,
any securities or other consideration received by the holders of common stock pursuant to the fundamental transaction. Any successor
to us or surviving entity shall assume the obligations under the warrants.
The warrant holders must surrender payment in cash of the aggregate
exercise price of the shares being acquired upon exercise of the warrants. If at any time after the six month anniversary of the
initial exercise date (August 10, 2012), there is no effective registration statement registering, or no current prospectus available
for the resale of the shares issuable upon exercise of the warrants, then the warrants may only be exercised on a "net"
or "cashless" basis. No fractional shares of common stock will be issued in connection with the exercise of a warrant.
In lieu of fractional shares, we will pay the holder an amount in cash equal to the fractional amount multiplied by the exercise
price.
Anti-Takeover Provisions
We are not aware of any pending takeover
attempt or interest in making such an attempt. Our Restated Certificate of Incorporation, as amended, and Amended and Restated
Bylaws contain certain provisions which may be deemed to be "anti-takeover" in that they may deter, discourage or make
more difficult the assumption of control of Generex by another corporation or person through a tender offer, merger, proxy contest
or similar transaction or series of transactions.
Authorized but Unissued Shares:
The authorized but unissued shares of our common stock and preferred stock are available for future issuance without stockholder
approval. The Board of Directors may set the rights, preferences and terms of new preferred stock, without shareholder approval.
Shares of preferred stock could be issued quickly without shareholder approval, with terms calculated to delay or prevent a change
in control of Generex. Our stockholders do not have preemptive rights with respect to the purchase of these shares. Therefore,
such issuance could result in a dilution of voting rights and book value per share of the common stock.
Advance Notice Requirements for Stockholder
Proposals and Director Nominations:
Our Amended and Restated Bylaws provide that a stockholder seeking to bring business before
an annual meeting of stockholders, or to nominate candidates for election as directors, must provide timely notice of such stockholder's
intention in writing. To be timely, a stockholder's notice must be received not less than 60 days nor more than 90 days prior
to the meeting at which such proposal or candidate is to be considered. However, if we do not give prior notice or make public
disclosure of the date of the meeting at least 70 days prior to the meeting date, notice by the stockholder is considered timely
if it is received no later than the close of business on the 10th day following the day on which such notice was mailed or public
disclosure was made. If a stockholder desires to have a proposal included in Generex's proxy statement, notice of such proposal
must be received not less than 120 days prior to the first anniversary of the date of Generex's notice of the previous year's
annual meeting. These advance notice provisions may preclude stockholders from bringing matters before a meeting or from making
nominations for directors.
Special Meetings of Stockholders:
Our Amended and Restated Bylaws provide that special meetings of stockholders may be called only by the Board of Directors, the
Chairman of the Board or the President, and may be called by the Board upon the request of the holders of a majority of the outstanding
shares of stock of the company entitled to vote at the meeting. Further, business transacted at any special meeting of stockholders
is limited to matters relating to the purpose or purposes stated in the notice of meeting.
88
General Effect of Anti-Takeover Provisions:
The overall effect of these provisions may be to deter a future tender offer or other takeover attempt that some stockholders might
view to be in their best interests at that time. In addition, these provisions may have the effect of assisting our current management
in retaining its position and place it in a better position to resist changes which some stockholders may want to make if dissatisfied
with the conduct of our business.
Stockholder Rights Plan
On May 30, 2006, our stockholders approved
the adoption of a stockholder rights plan that will allow our Board of Directors to declare a dividend of one share purchase right
for each outstanding share of our common stock. Our Board of Directors has considered adoption of this plan but has not yet approved
its adoption. We expect that any stockholder rights plan adopted by our Board will contain terms substantially as described below:
The terms of the rights plan will provide
for a dividend distribution of one preferred share purchase right, which we refer to as a "Right," for each outstanding
share of our common stock. The dividend will be payable on a date established by the Board to the stockholders of record on that
date. Each Right will entitle the registered holder to purchase from Generex one one-hundredth of a share of preferred stock (each
a "Preferred Share" and, collectively, the "Preferred Shares") at a price of $.01 per one one-hundredth
of a share of preferred stock, subject to certain adjustments. Each Preferred Share will have designations and powers, preferences
and rights, and the qualifications, limitations and restrictions which make its value approximately equal to the value of one share
of our common stock.
The Rights will not be exercisable until
the earlier to occur of:
(i)
the date of a public announcement that a person, entity or group of affiliated or associated
persons have acquired beneficial ownership of 20% or more of our outstanding shares of common stock, which we refer to as an "Acquiring
Person", or
(ii)
10 business days (or such later date as may be determined by action of the Board of Directors prior to such time as any person
or entity becomes an Acquiring Person) following the commencement of, or announcement of an intention to commence, a tender offer
or exchange offer the consummation of which would result in any person or entity becoming an Acquiring Person (the earlier of such
dates being called the "Distribution Date").
Until the Distribution Date, the Rights
will be transferable with and only with shares of our common stock. The Rights will expire ten years after adoption of the stockholders
rights plan unless the Rights are earlier redeemed or exchanged by Generex.
Preferred Shares purchasable upon exercise
of the Rights will not be redeemable. Each Preferred Share will be entitled to a minimum preferential quarterly dividend payment
of $1.00 but will be entitled to an aggregate dividend of 100 times the dividend declared per share of common stock. In the event
of liquidation, the holders of the Preferred Shares would be entitled to a minimum preferential liquidation payment of $100 per
share, but would be entitled to receive an aggregate payment equal to 100 times the payment made per share of common stock. Each
Preferred Share will have 100 votes, voting together with the common stock. Finally, in the event of any merger, consolidation
or other transaction in which shares of common stock are exchanged, each Preferred Share will be entitled to receive 100 times
the amount of consideration received per share of common stock. These rights will be protected by customary anti-dilution provisions.
Because of the nature of the Preferred Shares' dividend and liquidation rights, the value of one one-hundredth of a Preferred Share
should approximate the value of one share of common stock. The Preferred Shares would rank junior to any other series of our preferred
stock.
89
In the event that any person or group of
affiliated or associated persons becomes an Acquiring Person, proper provision will be made so that each holder of a Right, other
than Rights beneficially owned by the Acquiring Person and its associates and affiliates (which will thereafter be void), will
for a 60-day period have the right to receive upon exercise that number of shares of Preferred Stock having a market value of two
times the exercise price of the Right (or, if such number of shares is not and cannot be authorized, Generex may issue Preferred
Shares, cash, debt, stock or a combination thereof in exchange for the Rights). This right will terminate 60 days after the date
on which the Rights become nonredeemable (as described below), unless there is an injunction or similar obstacle to exercise of
the Rights, in which event this right will terminate 60 days after the date on which the Rights again become exercisable.
The rights plan will contain certain exceptions
to the characterization of a person or group as an "Acquiring Person." That term shall not be deemed to include:
·
Generex,
·
a subsidiary of Generex,
·
any employee benefit or compensation plan of Generex,
·
any entity holding shares of common stock for or pursuant to the terms of any such employee benefit or compensation plan or
·
any officer, director or current 5% holder as of the date the rights plan is implemented.
The rights plan may also except certain
institutional shareholders from the definition of "Acquiring Person." In addition, except under limited circumstances,
no person or entity shall become an Acquiring Person as the result of the acquisition of shares of common stock by Generex which,
by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such person or
entity to 20% or more of the shares of common stock then outstanding.
The stockholders rights plan may also contain
what is commonly known as a "flip-over" provision. In the event that Generex is acquired in a merger or other business
combination transaction or 50% or more of its consolidated assets or earning power are sold to an Acquiring Person, its associates
or affiliates or certain other persons in which such persons have an interest, the plan will require that proper provision be made
so that each holder of a Right will thereafter have the right to receive, upon the exercise thereof at the then current exercise
price of the Right, that number of shares of common stock of the acquiring company which at the time of such transaction will have
a market value of two times the exercise price of the Right.
At any time after an Acquiring Person becomes
an Acquiring Person and prior to the acquisition by such Acquiring Person of 50% or more of the outstanding shares of Generex's
common stock, our Board of Directors may exchange the Rights (other than Rights owned by such person or group which have become
void), in whole or in part, at an exchange ratio of one share of common stock, or one one-hundredth of a Preferred Share, per Right
(or, at our election, Generex may issue cash, debt, stock or a combination thereof in exchange for the Rights), subject to adjustment.
At any time prior to the earliest of (i)
the day of the first public announcement that a person has become an Acquiring Person or (ii) the final expiration date of the
rights, our Board of Directors may redeem the Rights in whole, but not in part, at a price of $.001 per Right. Following the expiration
of the above periods, the Rights become nonredeemable. Immediately upon any redemption of the Rights, the right to exercise the
Rights will terminate and the only right of the holders of Rights will be to receive the redemption price.
The Rights would have certain anti-takeover
effects. The Rights would cause substantial dilution to a person or group that attempts to acquire Generex on terms not approved
by our Board of Directors. The Rights should not interfere with any merger or other business combination approved by our Board
of Directors since the Rights could be amended to permit such acquisition or redeemed by us at $.001 per Right prior to the earliest
of (i) the time that a person or group has acquired beneficial ownership of 20% or more of our shares of common stock or (ii) the
final expiration date of the rights.
90
Dividend Policy
Holders of our common stock are entitled
to receive such dividends as the Board of Directors may from time to time declare. The Board may declare dividends only when dividends
are legally available. Under the Delaware General Corporation Law, the Board may only declare dividends out of our capital surplus
(generally the amount of its paid-in capital above the par value of the outstanding stock) or out of net profits for the fiscal
year with respect to which the dividends are paid.  We have never paid any dividends on our common stock and do not anticipate
paying dividends on the common stock in the foreseeable future. The Certificates of Designation pertaining to our Series B 9% Convertible
Preferred Stock and our Series C 9% Convertible Preferred Stock impose certain restrictions on our ability to pay dividends on
our common stock. For information about these restrictions, see the discussion under the caption "Management's Discussion
and Analysis of Financial Condition and Results of Operations" under the heading "Financial Condition, Liquidity and
Resources" and the subheadings "Financing – February 2012"and "Financing – August 2012"
in this prospectus. The dividends payable on our Series C 9% Convertible Preferred Stock are described under the caption "Description
of Securities To Be Registered" under the heading "Description of Our Capital Stock" and the "Series C
Preferred Stock."
Transfer Agent
Broadridge Corporate
Issuer Solutions, Inc. (formerly
StockTrans, Inc.),
1717 Arch St. Suite 1300 Philadelphia, PA 
19103
, is the transfer agent and registrar for our common stock.
Quotation
Our common stock is quoted on the OTC Bulletin
Board under the symbol "GNBT.OB."
PLAN OF DISTRIBUTION
We are registering shares of common stock
that are issued and outstanding, issuable upon conversion of outstanding shares of our Series C convertible preferred stock, issuable
upon exercise of outstanding warrants issued in connection with such preferred stock, and issuable in lieu of cash payments of
dividends on such preferred stock. Our registration will permit the resale of these shares of common stock by the holders of our
common stock, Series C convertible preferred stock and warrants from time to time after the date of this prospectus. We will not
receive any of the proceeds from the sale by the Selling Security Holders of the shares of common stock. We will bear all fees
and expenses incident to our obligation to register the shares of common stock.
The Selling Security Holders may sell all
or a portion of the shares of common stock beneficially owned by them and offered hereby from time to time directly or through
one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters or broker-dealers,
the Selling Security Holders will be responsible for underwriting discounts or commissions or agent's commissions. The shares
of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at
varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may
involve crosses or block transactions,
·
on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
·
in the over-the-counter market;
·
in transactions otherwise than on these exchanges or systems or in the over-the-counter market;
·
through the writing of options, whether such options are listed on an options exchange or otherwise;
·
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
91
·
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
·
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
·
an exchange distribution in accordance with the rules of the applicable exchange;
·
privately negotiated transactions;
·
short sales made after the date the Registration Statement is declared effective by the SEC, subject to any applicable limitations on short sales contained in any agreement between a selling shareholder and us;
·
sales pursuant to Rule 144;
·
broker-dealers may agree with the Selling Security Holders to sell a specified number of such shares at a stipulated price per share;
·
a combination of any such methods of sale; and
·
any other method permitted pursuant to applicable law.
If the Selling Security Holders effect such
transactions by selling shares of common stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers
or agents may receive commissions in the form of discounts, concessions or commissions from the Selling Security Holders or commissions
from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal (which discounts,
concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types
of transactions involved). In connection with sales of the shares of common stock or otherwise, the Selling Security Holders may
enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of common stock in the
course of hedging in positions they assume. The Selling Security Holders may also sell shares of common stock short and deliver
shares of common stock covered by this prospectus to close out short positions and to return borrowed shares in connection with
such short sales. The Selling Security Holders may also loan or pledge shares of common stock to broker-dealers that in turn may
sell such shares.
The Selling Security Holders may pledge or
grant a security interest in some or all of the shares of common stock owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time pursuant
to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act,
amending, if necessary, the list of Selling Security Holders to include the pledgee, transferee or other successors in interest
as Selling Security Holders under this prospectus. The Selling Security Holders also may transfer and donate the shares of common
stock in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.
The Selling Security Holders and any broker-dealer
participating in the distribution of the shares of common stock may be deemed to be "underwriters" within the meaning
of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed
to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares of common
stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of shares of
common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts,
commissions and other terms constituting compensation from the Selling Security Holders and any discounts, commissions or concessions
allowed or reallowed or paid to broker-dealers.
92
Under the securities laws of some states,
the shares of common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some
states the shares of common stock may not be sold unless such shares have been registered or qualified for sale in such state or
an exemption from registration or qualification is available and is complied with.
There can be no assurance that any Selling
Security Holder will sell any or all of the shares of common stock registered pursuant to the shelf registration statement, of
which this prospectus forms a part.
The Selling Security Holders and any other
person participating in such distribution will be subject to applicable provisions of the Exchange Act, and the rules and regulations
thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing
of purchases and sales of any of the shares of common stock by the selling shareholders and any other participating person. To
the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common
stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability
of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the
shares of common stock.
We will pay all expenses of the registration
of the shares of common stock pursuant to the registration rights agreement, estimated to be $40,000 in total, including, without
limitation, SEC filing fees;
provided
,
however
, that a Selling Security Holder will pay all underwriting discounts
and selling commissions, if any. We will indemnify the Selling Security Holders against liabilities, including some liabilities
under the Securities Act, in accordance with the registration rights agreements, or the Selling Security Holders will be entitled
to contribution. We may be indemnified by the Selling Security Holders against civil liabilities, including liabilities under the
Securities Act, that may arise from any written information furnished to us by the Selling Security Holders specifically for use
in this prospectus, in accordance with the related registration rights agreements, or we may be entitled to contribution.
Once sold under the registration statement,
of which this prospectus forms a part, the shares of common stock will be freely tradable under U.S. federal securities laws in
the hands of persons other than our affiliates.
LEGAL MATTERS
The validity of the shares of common
stock offered by this prospectus will be passed upon for us by Eckert Seamans Cherin & Mellott, LLC, Two Liberty Place,
50 South 16th Street, 22nd Floor, Philadelphia, PA 19102.  Certain members of the firm of Eckert Seamans Cherin &
Mellott, LLC own additional shares (less than one percent in total) that they purchased from time to time for cash, either from
us or in the public market.
EXPERTS
The consolidated financial statements of
Generex Biotechnology Corporation for the years ended July 31, 2010 and 2011 have been so included in reliance on the
report (which contains an explanatory paragraph describing conditions that raise substantial doubt about Generex Biotechnology
Corporation's ability to continue as a going concern as described in Note [1] to such consolidated financial statements),
of MSCM LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration
statement on Form S-1 under the Securities Act with respect to the common stock offered hereby. This prospectus, which constitutes
part of the registration statement, does not contain all of the information set forth in the registration statement and the exhibits
and schedule thereto, certain parts of which are omitted in accordance with the rules and regulations of the SEC. For further information
regarding our common stock and our company, please review the registration statement, including exhibits, schedules and reports
filed as a part thereof. Statements in this prospectus as to the contents of any contract or other document filed as an exhibit
to the registration statement, set forth the material terms of such contract or other document but are not necessarily complete,
and in each instance reference is made to the copy of such document filed as an exhibit to the registration statement, each such
statement being qualified in all respects by such reference.
93
We are also subject to the informational
requirements of the Exchange Act which requires us to file reports, proxy statements and other information with the SEC. Such reports,
proxy statements and other information along with the registration statement, including the exhibits and schedules thereto, may
be inspected at public reference facilities of the SEC at 100 F Street N.E., Washington D.C. 20549. Copies of such material can
be obtained from the Public Reference Section of the SEC at prescribed rates. You may call the SEC at 1-800-SEC-0330 for further
information on the operation of the public reference room. Because we file documents electronically with the SEC, you may also
obtain this information by visiting the SEC's Internet website at http://www.sec.gov.
94
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
Financial Statements (Audited)
Report of Independent Registered Public Accounting Firm
F-2
Consolidated Balance Sheets
July 31, 2011 and 2010
F-3
Consolidated Statements of Operations
For the Years Ended July 31, 2011, 2010 and 2009
and Cumulative From November 2, 1995 (Date of Inception)
to July 31, 2011
F-4
Consolidated Statements of Changes in Stockholders' (Deficiency)/Equity
For the Period November 2, 1995 (Date of Inception)
to July 31, 2011
F-5
Consolidated Statements of Cash Flows
For the Years Ended July 31, 2011, 2010 and 2009
and Cumulative From November 2, 1995 (Date of Inception)
to July 31, 2011
F-21
Notes to Consolidated Financial Statements
F-22
Financial Statements (unaudited)
Consolidated Balance Sheets -
April 30, 2012 (unaudited) and July 31, 2011
F-42
Consolidated Statements of Operations — For the three and six-month
periods ended April 30, 2012 and 2011, and cumulative from
November 2, 1995 to April 30, 2012 (unaudited)
F-43
Consolidated Statements of Cash Flows — For the six-month
periods ended April 30, 2012 and 2011, and cumulative from
November 2, 1995 to April 30, 2012 (unaudited)
F-44
Notes to Consolidated Financial Statements (unaudited)
F-46
F-
1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors
and Stockholders of
Generex Biotechnology Corporation
(A Development Stage Company)
We have audited the accompanying
consolidated balance sheets of Generex Biotechnology Corporation (a Development Stage Company) (the "Company") as of
July 31, 2011 and 2010 and the related consolidated statements of operations, stockholders' (deficiency)/equity and cash
flows for each of the years in the three year period ended July 31, 2011, and for the period November 2, 1995 (date of inception)
to July 31, 2011. These financial statements are the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in
accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated
financial statements referred to above present fairly, in all material respects, the financial position of Generex Biotechnology
Corporation as of July 31, 2011 and 2010 and the results of its operations and its cash flows for each of the years in the three
year period ended July 31, 2011, and for the period November 2, 1995 (date of inception) to July 31, 2011 in conformity with accounting
principles generally accepted in the United States of America.
The accompanying consolidated
financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1, the Company's
experience of negative cash flows from operations since inception and its dependency upon future financing raise substantial doubt
about its ability to continue as a going concern. Management's plans regarding these matters are also described in Note 1.
The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
We also have audited, in
accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control
over financial reporting as of July 31, 2011, based on criteria established in
Internal Control – Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated October 14, 2011
expressed an unqualified opinion thereon.
/s/ MSCM LLP
MSCM LLP
Toronto, Canada
October 14, 2011
F-
2
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
July 31, 2011
July 31, 2010
ASSETS
Current Assets:
Cash and cash equivalents
$
2,798,797
$
13,880,870
Accounts receivable
8,690
70,585
Inventory (see Note 7)
717,442
1,911,883
Other current assets
225,052
333,456
Total Current Assets
3,749,981
16,196,794
Property and Equipment, Net (see Note 3)
1,271,867
1,341,408
Assets Held for Investment, Net (see Note 4)
3,634,929
3,503,110
Patents, Net (see Note 5)
3,349,588
3,533,688
TOTAL ASSETS
$
12,006,365
$
24,575,000
LIABILITIES AND STOCKHOLDERS' (DEFICIENCY)/EQUITY
Current Liabilities:
Accounts payable and accrued expenses (see Note 8)
$
7,738,179
$
6,554,714
Deferred revenue
369,748
396,195
Current maturities of long-term debt (see Note 11)
1,210,271
1,141,861
Current maturities of obligations under capital lease
—
7,818
Total Current Liabilities
9,318,198
8,100,588
Long-Term Debt, Net (see Note 11)
1,869,795
1,824,071
Derivative Warrant Liability (see Note 13)
8,745,508
5,679,721
Derivative Additional Investment Rights Liability (see Note 13)
515,000
—
Total Liabilities
20,448,501
15,604,380
Commitments and Contingencies (see Note 9)
Stockholders' (Deficiency)/Equity (see Notes 12 and 14):
Series A 9% Convertible Preferred Stock, $1,000 par value; authorized 5,500 and -0- shares at July 31, 2011 and 2010, respectively ; 1,287 and -0- shares issued and outstanding at July 31, 2011 and 2010, respectively
—
—
Common stock, $.001 par value; authorized 750,000,000 shares at July 31, 2011 and 2010, respectively; 308,519,768 and 269,599,615 shares issued and outstanding at July 31, 2011 and 2010, respectively
308,520
269,600
Additional paid-in capital
338,124,525
333,219,309
Deficit accumulated during the development stage
(347,744,756
)
(325,302,472
)
Accumulated other comprehensive income
869,575
784,183
Total Stockholders' (Deficiency)/Equity
(8,442,136
)
8,970,620
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIENCY)/EQUITY
$
12,006,365
$
24,575,000
The Notes to Consolidated
Financial Statements are an integral part of these statements.
F-
3
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS
OF OPERATIONS
Cumulative From
November 2, 1995
For the Years Ended July 31,
(Date of Inception)
2011
2010
2009
to July 31, 2011
Revenues, net
$
291,628
$
1,172,611
$
1,118,509
$
5,082,133
Cost of Goods Sold
155,619
812,266
527,733
1,609,266
Gross profit
136,009
360,345
590,776
3,472,867
Operating Expenses:
Research and development
10,250,397
13,361,156
13,561,681
126,988,728
Research and development - related party
—
—
—
220,218
Selling and marketing
1,025,774
3,709,767
2,120,903
9,168,039
General and administrative
13,392,920
12,719,239
11,164,352
142,912,977
General and administrative - related party
—
—
—
314,328
Total Operating Expenses
24,669,091
29,790,162
26,846,936
279,604,290
Operating Loss
(24,533,082
)
(29,429,817
)
(26,256,160
)
(276,131,423
)
Other Income (Expense):
Miscellaneous income (expense)
489,292
750
3
686,303
Income from rental operations, net
349,458
206,575
320,547
2,128,041
Interest income
6,455
27,045
237,977
7,780,374
Interest expense
(208,906
)
(210,083
)
(20,114,595
)
(68,416,157
)
Change in fair value of derivative warrant liability
2,220,916
4,125,590
—
365,463
(1)
Loss on extinguishment of debt
—
—
—
(14,134,068
)
Net Loss Before Undernoted
(21,675,867
)
(25,279,940
)
(45,812,228
)
(347,721,467
)
Minority Interest Share of Loss
—
—
—
3,038,185
Net Loss
(21,675,867
)
(25,279,940
)
(45,812,228
)
(344,683,282
)
Preferred Stock Dividend
766,417
—
—
3,061,474
Net Loss Available to Common Stockholders
$
(22,442,284
)
$
(25,279,940
)
$
(45,812,228
)
$
(347,744,756
)
Basic and Diluted Net Loss Per Common Share (see Note 17)
$
(.08
)
$
(.10
)
$
(.32
)
Weighted Average Number of Shares of Common Stock Outstanding - basic and diluted (Note 17)
284,818,486
250,949,333
144,409,840
(1) - includes $5,981,403 as adjustment
related to the adoption of FASB ASC Topic 815 in "Cumulative from November 2, 1995 (Date of Inception) to July 31, 2011" column.
See Note 13 - Derivative Warrant Liability.
The Notes to Consolidated
Financial Statements are an integral part of these statements.
F-
4
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance November 2, 1995 (Inception)
-
$
-
-
$
-
-
$
-
$
-
$
-
$
-
$
-
$
-
Issuance of common stock for cash, February 1996, $.0254
-
-
321,429
321
-
-
7,838
-
-
-
8,159
Issuance of common stock for cash, February 1996, $.0510
-
-
35,142
35
-
-
1,757
-
-
-
1,792
Issuance of common stock for cash, February 1996, $.5099
-
-
216,428
216
-
-
110,142
-
-
-
110,358
Issuance of common stock for cash, March 1996, $10.2428
-
-
2,500
3
-
-
25,604
-
-
-
25,607
Issuance of common stock for cash, April 1996, $.0516
-
-
489,850
490
-
-
24,773
-
-
-
25,263
Issuance of common stock for cash, May 1996, $.0512
-
-
115,571
116
-
-
5,796
-
-
-
5,912
Issuance of common stock for cash, May 1996, $.5115
-
-
428,072
428
-
-
218,534
-
-
-
218,962
Issuance of common stock for cash, May 1996, $10.2302
-
-
129,818
130
-
-
1,327,934
-
-
-
1,328,064
Issuance of common stock for cash, July 1996, $.0051
-
-
2,606,528
2,606
-
-
10,777
-
-
-
13,383
Issuance of common stock for cash, July 1996, $.0255
-
-
142,857
143
-
-
3,494
-
-
-
3,637
Issuance of common stock for cash, July 1996, $.0513
-
-
35,714
36
-
-
1,797
-
-
-
1,833
Issuance of common stock for cash, July 1996, $10.1847
-
-
63,855
64
-
-
650,282
-
-
-
650,346
Costs related to issuance of common stock
-
-
-
-
-
-
(10,252
)
-
-
-
(10,252
)
Founders Shares transferred for services rendered
-
-
-
-
-
-
330,025
-
-
-
330,025
Comprehensive Income (Loss):
Net loss
-
-
-
-
-
-
-
-
(693,448
)
-
(693,448
)
Other comprehensive income (loss)
Currency translation adjustment
-
-
-
-
-
-
-
-
-
(4,017
)
(4,017
)
Total Comprehensive Income (Loss)
(693,448
)
(4,017
)
(697,465
)
Balance, July 31, 1996
-
$
-
4,587,764
$
4,588
-
$
-
$
2,708,501
$
-
$
(693,448
)
$
(4,017
)
$
2,015,624
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
5
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 1996
-
$
-
4,587,764
$
4,588
-
$
-
$
2,708,501
$
-
$
(693,448
)
$
(4,017
)
$
2,015,624
Issuance of common stock for cash, September 1996, $.0509
-
-
2,143
2
-
-
107
-
-
-
109
Issuance of common stock for cash, December 1996, $10.2421
-
-
1,429
1
-
-
14,635
-
-
-
14,636
Issuance of common stock for cash, January 1997, $.0518
-
-
1,466
1
-
-
75
-
-
-
76
Issuance of common stock for cash, March 1997, $10.0833
-
-
12
-
-
-
121
-
-
-
121
Issuance of common stock for cash, May 1997, $.0512
-
-
4,233
4
-
-
213
-
-
-
217
Issuance of common stock for cash, May 1997, $.5060
-
-
4,285,714
4,286
-
-
2,164,127
-
-
-
2,168,413
Costs related to issuance of common stock, May 1997
-
-
-
-
-
-
(108,421
)
-
-
-
(108,421
)
Issuance of common stock for cash, May 1997, $10.1194
-
-
18,214
18
-
-
184,297
-
-
-
184,315
Issuance of common stock for cash, June 1997, $.0504
-
-
10,714
11
-
-
529
-
-
-
540
Issuance of common stock for cash, June 1997, $.5047
-
-
32,143
32
-
-
16,190
-
-
-
16,222
Issuance of common stock for cash, June 1997, $8.9810
-
-
29,579
30
-
-
265,618
-
-
-
265,648
Issuance of common stock for cash, June 1997, $10.0978
-
-
714
1
-
-
7,209
-
-
-
7,210
Issuance of common stock for cash, July 1997, $10.1214
-
-
25,993
26
-
-
263,060
-
-
-
263,086
Costs related to issuance of common stock
-
-
-
-
-
-
(26,960
)
-
-
-
(26,960
)
Founders Shares transferred for services rendered
-
-
-
-
-
-
23,481
-
-
-
23,481
Comprehensive Income (Loss):
Net loss
-
-
-
-
-
-
-
-
(1,379,024
)
-
(1,379,024
)
Other comprehensive income (loss)
Currency translation adjustment
-
-
-
-
-
-
-
-
-
3,543
3,543
Total Comprehensive Income (Loss)
(1,379,024
)
3,543
(1,375,481
)
Balance, July 31, 1997
-
$
-
9,000,118
$
9,000
-
$
-
$
5,512,782
$
-
$
(2,072,472
)
$
(474
)
$
3,448,836
The Notes to Consolidated Financial Statements are an integral part of these statements.
F-
6
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 1997
-
$
-
9,000,118
$
9,000
-
$
-
$
5,512,782
$
-
$
(2,072,472
)
$
(474
)
$
3,448,836
Issuance of warrants in exchange for services rendered, October 1997, $.50
-
-
-
-
-
-
234,000
-
-
-
234,000
Issuance of common stock in exchange for services rendered, December 1997, $0.05
-
-
234,000
234
-
-
10,698
-
-
-
10,932
Issuance of SVR Preferred Stock in exchange for services rendered, January 1998, $.001
1,000
1
-
-
-
-
99
-
-
-
100
Shares issued pursuant to the January 9, 1998 reverse merger between GBC-Delaware, Inc. and Generex Biotechnology Corporation
-
-
1,105,000
1,105
-
-
(1,105
)
-
-
-
-
Issuance of common stock for cash,  March 1998, $2.50
-
-
70,753
71
-
-
176,812
-
-
-
176,883
Issuance of common stock for cash,  April 1998, $2.50
-
-
60,000
60
-
-
149,940
-
-
-
150,000
Issuance of common stock in exchange for services rendered, April 1998, $2.50
-
-
38,172
38
-
-
95,392
-
-
-
95,430
Issuance of common stock for cash,  May 1998, $2.50
-
-
756,500
757
-
-
1,890,493
-
-
-
1,891,250
Issuance of common stock in exchange for services rendered, May 1998, $2.50
-
-
162,000
162
-
-
404,838
-
-
-
405,000
Issuance of warrants in exchange for services rendered, May 1998, $.60
-
-
-
-
-
-
300,000
-
-
-
300,000
Issuance of common stock for cash,  June 1998, $2.50
-
-
286,000
286
-
-
714,714
-
-
-
715,000
Exercise of warrants for cash, June 1998, $0.0667
-
-
234,000
234
-
-
15,374
-
-
-
15,608
Issuance of common stock in exchange for services rendered, June 1998, $2.50
-
-
24,729
24
-
-
61,799
-
-
-
61,823
Comprehensive Income (Loss):
Net loss
-
-
-
-
-
-
-
-
(4,663,604
)
-
(4,663,604
)
Other comprehensive income (loss)
Currency translation adjustment
-
-
-
-
-
-
-
-
-
(198,959
)
(198,959
)
Total Comprehensive Income (Loss)
(4,663,604
)
(198,959
)
(4,862,563
)
Balance, July 31, 1998
1,000
$
1
11,971,272
$
11,971
-
$
-
$
9,565,836
$
-
$
(6,736,076
)
$
(199,433
)
$
2,642,299
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
7
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 1998
1,000
$
1
11,971,272
$
11,971
-
$
-
$
9,565,836
$
-
$
(6,736,076
)
$
(199,433
)
$
2,642,299
Issuance of common stock for cash,  August 1998, $3.00
-
-
100,000
100
-
-
299,900
-
-
-
300,000
Issuance of common stock for cash,  August 1998, $3.50
-
-
19,482
19
-
-
68,168
-
-
-
68,187
Redemption of common stock for cash, September 1998, $7.75
-
-
(15,357
)
(15
)
-
-
(119,051
)
-
-
-
(119,066
)
Issuance of common stock for cash, September - October 1998, $3.00
-
-
220,297
220
-
-
660,671
-
-
-
660,891
Issuance of common stock for cash, August - October 1998, $4.10
-
-
210,818
211
-
-
864,142
-
-
-
864,353
Issuance of common stock in exchange for services rendered, August - October 1998, $2.50
-
-
21,439
21
-
-
53,577
-
-
-
53,598
Issuance of common stock in exchange for services rendered, August - October 1998, $4.10
-
-
18,065
18
-
-
74,048
-
-
-
74,066
Issuance of common stock in exchange for services rendered, September 1998, $4.10
-
-
180,000
180
-
-
737,820
-
-
-
738,000
Issuance of warrants in exchange for services rendered, October 1998, $.26
-
-
-
-
-
-
2,064
-
-
-
2,064
Issuance of stock options in exchange for services rendered, November 1998, $1.85
-
-
-
-
-
-
92,500
-
-
-
92,500
Issuance of warrants in exchange for services rendered, November 1998, $1.64
-
-
-
-
-
-
246,000
-
-
-
246,000
Issuance of common stock for cash, November 1998 - January 1999, $3.50
-
-
180,000
180
-
-
629,820
-
-
-
630,000
Issuance of common stock for cash, November 1998 - January 1999, $4.00
-
-
275,000
275
-
-
1,099,725
-
-
-
1,100,000
Issuance of common stock for cash, November 1998 - January 1999, $4.10
-
-
96,852
97
-
-
397,003
-
-
-
397,100
Issuance of common stock in exchange for services rendered, November 1998 - January 1999, $4.10
-
-
28,718
29
-
-
117,715
-
-
-
117,744
Issuance of common stock for cash, November 1998 - January 1999, $5.00
-
-
20,000
20
-
-
99,980
-
-
-
100,000
Issuance of common stock for cash, November 1998 - January 1999, $5.50
-
-
15,000
15
-
-
82,485
-
-
-
82,500
Issuance of common stock in exchange for services rendered, January 1999, $5.00
-
-
392
-
-
-
1,960
-
-
-
1,960
Issuance of common stock for cash, February 1999, $5.00
-
-
6,000
6
-
-
29,994
-
-
-
30,000
Issuance of common stock in exchange for services rendered, February 1999, $6.00
-
-
5,000
5
-
-
29,995
-
-
-
30,000
Issuance of common stock for cash, March 1999, $6.00
-
-
11,000
11
-
-
65,989
-
-
-
66,000
Issuance of common stock for cash, April 1999, $5.50
-
-
363,637
364
-
-
1,999,640
-
-
-
2,000,004
Issuance of warrants in exchange for services rendered, April 1999, $3.21
-
-
-
-
-
-
160,500
-
-
-
160,500
Issuance of warrants in exchange for services rendered, April 1999, $3.17
-
-
-
-
-
-
317,000
-
-
-
317,000
Issuance of warrants in exchange for services rendered, April 1999, $2.89
-
-
-
-
-
-
144,500
-
-
-
144,500
Issuance of warrants in exchange for services rendered, April 1999, $3.27
-
-
-
-
184,310
-
-
-
184,310
Stock adjustment
-
-
714
1
-
-
(1
)
-
-
-
-
Issuance of common stock for cash, May 1999, $5.50
-
-
272,728
273
-
-
1,499,731
-
-
-
1,500,004
Issuance of common stock in exchange for services rendered, May - June 1999, $5.50
-
-
60,874
61
-
-
334,746
-
334,807
Exercise of warrants for cash, June 1999, $5.50
-
-
388,375
389
-
1,941,484
-
-
-
1,941,873
Exercise of warrants in exchange for note receivable, June 1999, $5.00
-
-
94,776
95
-
-
473,787
(473,882
)
-
-
-
Exercise of warrants in exchange for services rendered, June 1999, $5.00
-
-
13,396
13
-
-
66,967
-
-
-
66,980
Reduction of note receivable in exchange for services rendered
-
-
-
-
-
-
-
38,979
-
-
38,979
Shares tendered in conjunction with warrant exercise, June 1999, $7.8125
-
-
(323,920
)
(324
)
-
-
(2,530,301
)
-
-
-
(2,530,625
)
Exercise of warrants for shares tendered, June 1999, $5.00
-
-
506,125
506
-
-
2,530,119
-
-
-
2,530,625
Cost of warrants redeemed for cash
-
-
-
-
-
(3,769
)
-
-
-
(3,769
)
Cost related to warrant redemption, June 1999
-
-
-
-
-
-
(135,431
)
-
-
-
(135,431
)
Costs related to issuance of common stock
-
-
-
-
-
-
(1,179,895
)
-
-
-
(1,179,895
)
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(6,239,602
)
-
(6,239,602
)
Other comprehensive income (loss):
Currency translation adjustment
-
-
-
-
-
-
-
-
-
1,393
1,393
Total Comprehensive Income (Loss)
(6,239,602
)
1,393
(6,238,209
)
Balance, July 31, 1999
1,000
$
1
14,740,683
$
14,741
-
$
-
$
20,903,728
$
(434,903
)
$
(12,975,678
)
$
(198,040
)
$
7,309,849
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
8
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 1999
1,000
$
1
14,740,683
$
14,741
-
$
-
$
20,903,728
$
(434,903
)
$
(12,975,678
)
$
(198,040
)
$
7,309,849
Adjustment for exercise of warrants recorded June 1999, $5.00
-
-
(2,300
)
(2
)
-
-
2
-
-
-
-
Issuance of common stock for cash, September 1999, $6.00
-
-
2,500
2
-
-
14,998
-
-
-
15,000
Issuance of common stock for cash pursuant to private placement, January 2000, $4.25
-
-
470,590
471
-
-
1,999,537
-
-
-
2,000,008
Financing costs associated with private placement, January, 2000
-
-
-
-
-
-
(220,192
)
-
-
-
(220,192
)
Issuance of stock in exchange for services rendered, January 2000, $5.00
-
-
8,100
8
-
-
40,492
-
-
-
40,500
Granting of stock options for services rendered, January 2000
-
-
-
-
-
-
568,850
-
-
-
568,850
Granting of warrants for services rendered, January 2000
-
-
-
-
-
-
355,500
-
-
-
355,500
Exercise of warrants for cash, February 2000, $5.50
-
-
2,000
2
-
-
10,998
-
-
-
11,000
Exercise of warrants for cash, March 2000, $5.50
-
-
29,091
29
-
-
159,972
-
-
-
160,001
Exercise of warrants for cash, March 2000, $6.00
-
-
2,000
2
-
-
11,998
-
-
-
12,000
Exercise of warrants for cash, March 2000, $7.50
-
-
8,000
8
-
-
59,992
-
-
-
60,000
Issuance of common stock for cash pursuant to private placement, June 2000, $6.00
-
-
1,041,669
1,042
-
-
6,248,972
-
-
-
6,250,014
Financing costs associated with private placement, June 2000
-
-
-
-
-
-
(385,607
)
-
-
-
(385,607
)
Issuance of common stock for services, June 2000, $6.00
-
-
4,300
4
-
-
25,796
-
-
-
25,800
Exercise of warrants for cash, July 2000, $6.00
-
-
3,000
3
-
-
17,997
-
-
-
18,000
Exercise of warrants for cash, July 2000, $7.50
-
-
16,700
17
-
-
125,233
-
-
-
125,250
Granting of  stock options for services rendered, July 2000
-
-
-
-
-
-
496,800
-
-
-
496,800
Reduction  of note receivable in exchange for services rendered
-
-
-
-
-
-
-
384,903
-
-
384,903
Accrued interest on note receivable
-
-
-
-
-
-
-
(4,118
)
-
-
(4,118
)
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(8,841,047
)
-
(8,841,047
)
Other comprehensive income (loss):
Currency translation adjustment
-
-
-
-
-
-
-
-
-
32,514
32,514
Total Comprehensive Income (Loss)
(8,841,047
)
32,514
(8,808,533
)
Balance, July 31, 2000
1,000
$
1
16,326,333
$
16,327
-
$
-
$
30,435,066
$
(54,118
)
$
(21,816,725
)
$
(165,526
)
$
8,415,025
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
9
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 2000
1,000
$
1
16,326,333
$
16,327
-
$
-
$
30,435,066
$
(54,118
)
$
(21,816,725
)
$
(165,526
)
$
8,415,025
Exercise of warrants for cash, August 2000, $6.00
-
-
2,000
2
-
-
11,998
-
-
-
12,000
Issuance of common stock for services rendered August 2000
-
-
35,000
35
-
-
411,215
-
-
-
411,250
Issuance of warrants in exchange for equity line agreement, August 2000
-
-
-
-
-
-
3,406,196
-
-
-
3,406,196
Exercise of warrants for cash, August 2000, $7.50
-
-
30,300
30
-
-
227,220
-
-
-
227,250
Exercise of warrants for cash, August 2000, $8.6625
-
-
30,000
30
-
-
259,845
-
-
-
259,875
Cashless exercise of warrants, August 2000
-
-
8,600
9
-
-
(9
)
-
-
-
-
Exercise of warrants for cash, August 2000, $10.00
-
-
10,000
10
-
-
99,990
-
-
-
100,000
Exercise of warrants for cash, September  2000, $8.6625
-
-
63,335
63
-
-
548,576
-
-
-
548,639
Exercise of warrants for cash, September 2000, $5.50
-
-
16,182
16
-
-
88,986
-
-
-
89,002
Exercise of warrants for cash, September 2000, $6.00
-
-
53,087
53
-
-
318,470
-
-
-
318,523
Exercise of warrants for cash, September 2000, $10.00
-
-
9,584
10
-
-
95,830
-
-
-
95,840
Exercise of warrants for cash, September  2000, $7.50
-
-
32,416
32
-
-
243,088
-
-
-
243,120
Issuance of common stock for cash pursuant to private placement, October 2000, $11.00
-
-
2,151,093
2,151
-
-
23,659,872
-
-
-
23,662,023
Exercise of warrants for cash, Oct. 2000, $6.00
-
-
1,000
1
-
-
5,999
-
-
-
6,000
Financing costs associated with private placement, October 2000
-
-
-
-
-
-
(1,956,340
)
-
-
-
(1,956,340
)
Exercise of warrants for cash, November - December 2000, $4.25
-
-
23,528
23
-
-
99,971
-
-
-
99,994
Cashless exercise of warrants, December 2000
-
-
3,118
3
-
-
(3
)
-
-
-
-
Exercise of warrants for cash, November - December 2000, $6.00
-
-
22,913
23
-
-
137,455
-
-
-
137,478
Exercise of warrants for cash, December 2000, $7.00
-
-
8,823
9
-
-
61,752
-
-
-
61,761
Issuance of common stock as employee compensation, December 2000
-
-
8,650
8
-
-
100,548
-
-
-
100,556
Exercise of warrants for cash, January  2001, $6.00
-
-
3,000
3
-
-
17,997
-
-
-
18,000
Issuance of common stock for cash pursuant to private placement, January 2001, $14.53
-
-
344,116
344
-
-
4,999,656
-
-
-
5,000,000
Financing costs associated with private placement, January 2001
-
-
-
-
-
-
(200,000
)
-
-
-
(200,000
)
Issuance of common stock pursuant to litigation settlement, January 2001
-
-
2,832
2
-
-
21,096
-
-
-
21,098
Granting of stock options in exchange for services rendered, January 2001
-
-
-
-
-
-
745,000
-
-
-
745,000
Granting of stock options in exchange for services rendered, February 2001
-
-
-
-
-
-
129,600
-
-
-
129,600
Exercise of stock options for cash, February 2001, $5.00
-
-
50,000
50
-
-
249,950
-
-
-
250,000
Exercise of warrants for cash, March 2001, $6.00
-
-
500
1
-
-
2,999
-
-
-
3,000
Exercise of stock options in exchange for note receivable, March 2001
-
-
50,000
50
-
-
249,950
(250,000
)
-
-
-
Issuance of common stock in exchange for services rendered, March 2001, $5.50
-
-
8,000
8
-
-
43,992
-
-
-
44,000
Granting of stock options in exchange for services rendered, May 2001
-
-
-
-
-
-
592,300
-
-
-
592,300
Exercise of stock options for cash, June 2001, $5.00
-
-
75,000
75
-
-
374,925
-
-
-
375,000
Exercise of stock options for cash, June 2001, $5.50
-
-
12,500
12
-
-
68,738
-
-
-
68,750
Exercise of warrants for cash, June 2001, $6.00
-
-
4,000
4
-
-
23,996
-
-
-
24,000
Exercise of stock options for cash, July 2001, $5.00
-
-
7,500
8
-
-
37,492
-
-
-
37,500
Exercise of stock options for cash, July 2001, $5.50
-
-
2,500
3
-
-
13,747
-
-
-
13,750
Exercise of warrants for cash, July 2001, $6.00
-
-
2,000
2
-
-
11,998
-
-
-
12,000
Issuance of common stock for cash pursuant to private placement, July 2001, $9.25
-
-
1,254,053
1,254
-
-
11,598,736
-
-
-
11,599,990
Financing costs associated with private placement, July 2001
-
-
-
-
-
-
(768,599
)
-
-
-
(768,599
)
Shares issued in exchange for services rendered, July 2001, $9.25
-
-
23,784
24
-
-
219,978
-
-
-
220,002
Shares issued for Anti-Dilution Provisions, July 2001
-
-
5,779
6
-
-
53,450
-
-
-
53,456
Issuance of warrants in exchange for services rendered, July 2001
-
-
-
-
-
-
19,134
-
-
-
19,134
Accrued interest on note receivable
-
-
-
-
-
-
-
(10,182
)
-
-
(10,182
)
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(27,097,210
)
-
(27,097,210
)
Other comprehensive income (loss):
Currency translation adjustment
-
-
-
-
-
-
-
-
-
(81,341
)
(81,341
)
Total Comprehensive Income (Loss)
(27,097,210
)
(81,341
)
(27,178,551
)
Balance at July 31, 2001
1,000
$
1
20,681,526
$
20,681
-
$
-
$
76,761,860
$
(314,300
)
$
(48,913,935
)
$
(246,867
)
$
27,307,440
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
10
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 2001
1,000
$
1
20,681,526
$
20,681
-
$
-
$
76,761,860
$
(314,300
)
$
(48,913,935
)
$
(246,867
)
$
27,307,440
Exercise of stock options for cash, August 2001, $5.50
-
-
5,000
5
-
-
27,495
-
-
-
27,500
Purchase of Treasury Stock for cash October 2001, $3.915
-
-
-
-
(10,000
)
(39,150
)
-
-
-
-
(39,150
)
Issuance of stock options in exchange for services rendered, December 2001
-
-
-
-
-
-
25,000
-
-
-
25,000
Issuance of common stock as employee compensation, January 2002
-
-
10,800
11
-
-
71,161
-
-
-
71,172
Preferred stock dividend paid January 2002
-
-
-
-
-
-
-
-
(720,900
)
-
(720,900
)
Purchase of Treasury Stock for cash
February 2002, $4.693
-
-
-
-
(31,400
)
(147,346
)
-
-
-
-
(147,346
)
Issuance of warrants in exchange for services rendered, March 2002
-
-
-
-
-
-
202,328
-
-
-
202,328
Purchase of Treasury Stock for cash March 2002, $4.911
-
-
-
-
(7,700
)
(37,816
)
-
-
-
-
(37,816
)
Purchase of Treasury Stock for cash April 2002, $4.025
-
-
-
-
(12,800
)
(54,516
)
-
-
-
-
(54,516
)
Issuance of stock options in exchange for services rendered, June 2002
-
-
-
-
-
-
132,387
-
-
-
132,387
Purchase of Treasury Stock for cash July 2002, $4.025
-
-
-
-
(34,600
)
(116,703
)
-
-
-
-
(116,703
)
Accrued interest on note receivable
-
-
-
-
-
-
-
(22,585
)
-
-
(22,585
)
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(13,693,034
)
-
(13,693,034
)
Other comprehensive income (loss):
Currency translation adjustment
-
-
-
-
-
-
-
-
-
(71,185
)
(71,185
)
Total Comprehensive Income (Loss)
(13,693,034
)
(71,185
)
(13,764,219
)
Balance at July 31, 2002
1,000
$
1
20,697,326
$
20,697
(96,500
)
$
(395,531
)
$
77,220,231
$
(336,885
)
$
(63,327,869
)
$
(318,052
)
$
12,862,592
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
11
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 2002
1,000
$
1
20,697,326
$
20,697
(96,500
)
$
(395,531
)
$
77,220,231
$
(336,885
)
$
(63,327,869
)
$
(318,052
)
$
12,862,592
Receipt of restricted shares of common stock as settlement for executive loan, September 2002, $1.90
-
-
-
-
(592,716
)
(1,126,157
)
-
-
-
-
(1,126,157
)
Purchase of Treasury Stock for cash October 2002, $1.5574
-
-
-
-
(40,000
)
(62,294
)
-
-
-
-
(62,294
)
Issuance of warrants in exchange for the services rendered, November 2002, $2.50
-
-
-
-
-
-
988,550
-
-
-
988,550
Issuance of stock options in exchange for services receivable, November 2002, $2.10
-
-
-
-
-
-
171,360
-
-
-
171,360
Issuance of common stock in exchange for services rendered, November 2002, $2.10
-
-
30,000
30
-
-
62,970
-
-
-
63,000
Issuance of common stock as employee compensation, January 2003, $2.10
-
-
9,750
10
-
-
20,465
-
-
-
20,475
Purchase of Treasury Stock for cash December 2002, $2.0034
-
-
-
-
(13,000
)
(26,044
)
-
-
-
-
(26,044
)
Preferred stock dividend paid January 2003
-
-
-
-
-
-
-
-
(764,154
)
-
(764,154
)
Issuance of common stock in exchange for services rendered, March 2003, $1.00
-
-
70,000
70
-
-
69,930
-
-
-
70,000
Issuance of common stock for cash pursuant to private placement, May 2003, $1.15
-
-
2,926,301
2,926
-
-
3,362,324
-
-
-
3,365,250
Financing costs associated with private placement, May 2003
-
-
-
-
-
-
(235,568
)
-
-
-
(235,568
)
Exercise of warrants for cash, May 2003, $1.50
-
-
35,000
35
-
-
52,465
-
-
-
52,500
Issuance of common stock for cash pursuant to private placement, June 2003, $1.50
-
-
666,667
667
-
-
999,333
-
-
-
1,000,000
Issuance of common stock as employee compensation, June 2003, $2.00
-
-
100
-
-
-
200
-
-
-
200
Exercise of warrants for cash, June 2003, $1.50
-
-
1,496,001
1,496
-
-
2,242,506
-
-
-
2,244,002
Cashless exercise of warrants, June 2003
-
-
16,379
16
-
-
(16
)
-
-
-
-
Exercise of stock options for cash, June 2003, $1.59
-
-
70,000
70
-
-
111,230
-
-
-
111,300
Accrued interest on note receivable
-
-
-
-
-
-
-
(23,113
)
-
-
(23,113
)
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(13,261,764
)
-
(13,261,764
)
Other comprehensive income (loss)
Currency translation adjustment
-
-
-
-
-
-
-
-
-
406,830
406,830
Total Comprehensive Income (Loss)
(13,261,764
)
406,830
(12,854,934
)
Balance at July 31, 2003
1,000
$
1
26,017,524
$
26,017
(742,216
)
$
(1,610,026
)
$
85,065,980
$
(359,998
)
$
(77,353,787
)
$
88,778
$
5,856,965
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
12
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 2003
1,000
$
1
26,017,524
$
26,017
(742,216
)
$
(1,610,026
)
$
85,065,980
$
(359,998
)
$
(77,353,787
)
$
88,778
$
5,856,965
Shares issued pursuant to acquisition of Antigen Express Inc., August 2003
-
-
2,779,974
2,780
-
-
4,639,777
-
-
-
4,642,557
Cost of stock options to be assumed in conjunction with merger
-
-
-
-
-
-
154,852
-
-
-
154,852
Exercise of stock options for cash, September 2003, $1.59
-
-
10,000
10
-
-
15,890
-
-
-
15,900
Exercise of stock options for cash, October 2003, $2.10
-
-
14,900
15
-
-
31,275
-
-
-
31,290
Exercise of stock options for cash, October 2003, $1.59
-
-
10,000
10
-
-
15,890
-
-
-
15,900
Exercise of stock options for cash, October 2003, $0.30
-
-
65,000
65
-
-
19,435
-
-
-
19,500
Exercise of stock options for cash, October 2003, $0.55
-
-
40,000
40
-
-
21,960
-
-
-
22,000
Issuance of common stock In exchange for services rendered, October 2003, $1.98
-
-
150,000
150
-
-
296,850
-
-
-
297,000
Issuance of common stock In exchange for services rendered, October 2003, $1.84
-
-
337,500
338
-
-
620,662
-
-
-
621,000
Issuance of warrants in exchange for the services rendered October 2003 (at $1.35)
-
-
-
-
-
-
27,000
-
-
-
27,000
Exercise of stock options for cash, November 2003,$2.10
-
-
10,500
10
-
-
22,040
-
-
-
22,050
Redemption of Treasury Stock, November 2003, $2.17
-
-
(742,216
)
(742
)
742,216
1,610,026
(1,609,284
)
-
-
-
-
Granting of stock options in exchange for services, November 2003 (at $1.71)
-
-
-
-
-
-
151,433
-
-
-
151,433
Issuance of common stock for cash pursuant to private placement, Jan 2004, $1.47
-
-
1,700,680
1,701
-
-
2,498,299
-
-
-
2,500,000
Issuance of common stock for cash pursuant to private placement, Jan 2004, $1.80
-
-
55,556
56
-
-
99,944
-
-
-
100,000
Issuance of common stock for cash pursuant to private placement, Jan 2004, $1.75
-
-
228,572
229
-
-
399,771
-
-
-
400,000
Financing costs associated with private placement, January 2004
-
-
-
-
-
-
(68,012
)
-
-
-
(68,012
)
Preferred Stock Dividend paid in January
-
-
-
-
-
-
-
-
(810,003
)
-
(810,003
)
Issuance of common stock for cash pursuant to private placement, Feb 2004, $1.60
-
-
93,750
94
-
-
149,906
-
-
-
150,000
Issuance of common stock for cash pursuant to private placement, Feb 2004, $1.66
-
-
68,675
69
-
-
113,932
-
-
-
114,001
Issuance of common stock for cash pursuant to private placement, Feb 2004, $1.50
-
-
666,667
667
-
-
999,334
-
-
-
1,000,001
Issuance of common stock as employee compensation, Feb 2004, $1.48
-
-
8,850
8
-
-
13,089
-
-
-
13,097
Issuance of common stock In exchange for services rendered, Feb 2004, $1.48
-
-
175,000
175
-
-
258,825
-
-
-
259,000
Issuance of common stock In exchange for services rendered, Feb 2004, $1.51
-
-
112,500
113
-
-
169,762
-
-
-
169,875
Issuance of common stock for cash pursuant to private placement, July 2004, $1.22
-
-
2,459,016
2,459
-
-
2,997,541
-
-
-
3,000,000
Financing costs associated with private placement, July 2004
-
-
-
-
-
-
(41,250
)
-
-
-
(41,250
)
Variable accounting non-cash compensation expense
-
-
-
-
-
-
45,390
-
-
-
45,390
Accrued interest on note receivable
-
-
-
-
-
-
-
(24,805
)
-
-
(24,805
)
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(18,362,583
)
-
(18,362,583
)
Other comprehensive income (loss)
Currency translation adjustment
-
-
-
-
-
-
-
-
-
207,593
207,593
Total Comprehensive Income (Loss)
(18,362,583
)
207,593
(18,154,990
)
Balance at July 31, 2004
1,000
$
1
34,262,448
$
34,264
-
$
-
$
97,110,291
$
(384,803
)
$
(96,526,373
)
$
296,371
$
529,751
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
13
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 2004
1,000
$
1
34,262,448
$
34,264
-
$
-
$
97,110,291
$
(384,803
)
$
(96,526,373
)
$
296,371
$
529,751
Issuance of common stock In exchange for services rendered, Aug 2004, $1.09
-
-
620,000
620
-
-
675,180
-
-
-
675,800
Issuance of warrants in exchange for services rendered Aug 2004, $1.08
-
-
-
-
-
-
415,000
-
-
-
415,000
Granting of stock options in exchange for services,Oct 2004, $0.94
-
-
-
-
-
-
75,600
-
-
-
75,600
Cancellation of common stock for non-performance of services, Oct 2004, $0.94
-
-
(75,000
)
(75
)
-
-
(137,925
)
-
-
-
(138,000
)
Issuance of warrants in conjunction with financing, Nov 2004, $0.91
-
-
-
-
-
-
89,900
-
-
-
89,900
Issuance of warrants in conjunction with convertible debentures, $4,000,000, Nov 2004 $0.91
-
-
-
-
-
-
1,722,222
-
-
-
1,722,222
Value of beneficial conversion feature on convertible debentures, $4,000,000, Nov 2004 $0.91
-
-
-
-
-
-
1,722,222
-
-
-
1,722,222
Issuance of common stock In exchange for services rendered, Dec 2004, $0.71
-
-
48,000
48
-
-
34,032
-
-
-
34,080
Conversion of Series A Preferred Stock, Dec 2004 $25.77
-
-
534,085
534
-
-
14,309,523
-
-
-
14,310,057
Issuance of common stock In exchange for services rendered, Jan 2005, $0.85
-
-
18,000
18
-
-
15,282
-
-
-
15,300
Issuance of common stock In exchange for services rendered, Jan 2005, $0.75
-
-
40,000
40
-
-
29,960
-
-
-
30,000
Issuance of common stock In exchange for services rendered, Feb 2005, $0.69
-
-
18,000
18
-
-
12,402
-
-
-
12,420
Issuance of common stock as repayment of principal and interest due, $4,000,000, Feb 2005
-
-
250,910
251
-
-
181,262
-
-
-
181,513
Issuance of common stock In exchange for services rendered, Feb 2005, $0.68
-
-
50,000
50
-
-
33,950
-
-
-
34,000
Issuance of common stock as repayment of principal and interest due, $4,000,000, Mar 2005
-
-
265,228
265
-
-
162,197
-
-
-
162,462
Issuance of common stock as repayment of principal and interest due, $4,000,000, Apr 2005
-
-
314,732
315
-
-
162,275
-
-
-
162,590
Issuance of common stock in connection with conversion of $143,500 of $4,000,000 debenture, Apr 2005
-
-
175,316
175
-
-
143,584
-
-
-
143,759
Issuance of common stock as employee compensation, Apr 2005, $0.56
-
-
8,800
9
-
-
4,919
-
-
-
4,928
Issuance of warrants in conjunction with convertible debentures, $500,000, Apr 2005, $0.82
-
-
-
-
-
-
245,521
-
-
-
245,521
Value of beneficial conversion feature on convertible debentures, $500,000, Apr 2005, $0.82
-
-
-
-
-
-
86,984
-
-
-
86,984
Issuance of warrants in conjunction with convertible debentures, $100,000, Apr 2005, $0.82
-
-
-
-
-
-
49,104
-
-
-
49,104
Value of beneficial conversion feature on convertible debentures, $100,000, Apr 2005, $0.82
-
-
-
-
-
-
17,397
-
-
-
17,397
Issuance of warrants in exchange for services rendered Apr 2005, $0.82
-
-
-
-
-
-
40,000
-
-
-
40,000
Issuance of common stock In exchange for services rendered, Apr 2005, $0.82
-
-
350,000
350
-
-
286,650
-
-
-
287,000
Issuance of common stock in satisfaction of accounts payable, Apr 2005, $0.82
-
-
950,927
951
-
-
778,809
-
-
-
779,760
Granting of stock options in exchange for outstanding liabilities, Apr 2005, $0.001
-
-
-
-
-
-
1,332,052
-
-
-
1,332,052
Issuance of common stock as repayment of principal and interest due, $4,000,000, May 2005
-
-
482,071
482
-
-
321,877
-
-
-
322,359
Issuance of common stock in connection with conversion of $300,000 of $4,000,000 debenture, May 2005
-
-
365,914
366
-
-
299,683
-
-
-
300,049
Issuance of common stock in connection with conversion of $244,000 of $4,000,000 debenture, May 2005
-
-
297,659
298
-
-
243,783
-
-
-
244,081
Issuance of common stock in connection with conversion of $410,000 of $4,000,000 debenture, May 2005
-
-
500,000
500
-
-
409,500
-
-
-
410,000
Issuance of warrants in conjunction with 1st extension of due date of $600,000 convertible debentures, May 2005, $0.82
-
-
-
-
-
-
717,073
-
-
-
717,073
Issuance of common stock as repayment of principal and interest due, $4,000,000, June 2005
-
-
311,307
311
-
-
244,644
-
-
-
244,955
Issuance of common stock in conjunction with financing,$2,000,000, June 2005, $0.82
-
-
170,732
171
-
-
139,829
-
-
-
140,000
Issuance of warrants in conjunction with financing, $2,000,000,June 2005, $0.82
-
-
-
-
-
-
20,300
-
-
-
20,300
Issuance of warrants in conjunction with convertible debentures,$2,000,000, June 2005, $0.82
-
-
-
-
-
-
828,571
-
-
-
828,571
Value of beneficial conversion feature on convertible debentures, $2,000,000, June 2005, $0.82
-
-
-
-
-
-
1,171,429
-
-
-
1,171,429
Issuance of common stock in connection with conversion of $100,000 of $2,000,000 debenture, June 2005
-
-
166,667
167
-
-
99,833
-
-
-
100,000
Issuance of common stock in connection with conversion of $190,000 of $2,000,000 debenture, June 2005
-
-
316,927
317
-
-
189,839
-
-
-
190,156
Issuance of common stock In exchange for services rendered, June 2005, $0.60
-
-
63,207
63
-
-
37,861
-
-
-
37,924
Issuance of common stock in satisfaction of accounts payable, June 2005, $0.82
-
-
90,319
90
-
-
73,971
-
-
-
74,061
Issuance of common stock in connection with conversion of $17,000 of $2,000,000 debenture, July 2005
-
-
28,398
28
-
-
17,011
-
-
-
17,039
Issuance of common stock in connection with conversion of $75,000 of $2,000,000 debenture, July 2005
-
-
125,000
125
-
-
75,035
-
-
-
75,160
Issuance of warrants in conjunction with 2nd extension of due date of $600,000 convertible debentures,July 2005, $0.82
-
-
-
-
-
-
629,268
-
-
-
629,268
Issuance of common stock as repayment of principal and interest due, $4,000,000, July 2005
-
-
364,123
364
-
-
237,586
-
-
-
237,950
Issuance of common stock in satisfaction of accounts payable, July 2005, $0.82
-
-
820,128
820
-
-
671,685
-
-
-
672,505
Granting of stock options in exchange for services,July 2004, $0.63
-
-
-
-
-
-
17,155
-
-
-
17,155
Accrued interest on note receivable
-
-
-
-
-
-
-
(6,300
)
-
-
(6,300
)
Write-off of uncollectible notes receivable – common stock
-
-
-
-
-
-
-
391,103
-
-
391,103
Variable accounting non-cash compensation expense
-
-
-
-
-
-
-
-
-
-
-
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(24,001,735
)
-
(24,001,735
)
Other comprehensive income (loss)
Currency translation adjustment
-
-
-
-
-
-
-
-
-
272,478
272,478
Total Comprehensive Income (Loss)
(24,001,735
)
272,478
(23,729,257
)
Balance at July 31, 2005
1,000
$
1
41,933,898
$
41,935
-
$
-
$
126,044,326
$
-
$
(120,528,108
)
$
568,849
$
6,127,003
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
14
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 2005
1,000
$
1
41,933,898
$
41,935
-
$
-
$
126,044,326
$
-
$
(120,528,108
)
$
568,849
$
6,127,003
Issuance of common stock as repayment of monthly amortization payments due, $4,000,000, August 2005
-
-
429,041
429
-
-
282,738
-
-
-
283,167
Issuance of common stock in exchange for the services rendered August 2005 (at $0.61)
-
-
19,500
19
-
-
11,877
-
-
-
11,896
Issuance of common stock in exchange for the services rendered August 2005 (at $0.59)
-
-
246,429
246
-
-
145,147
-
-
-
145,393
Issuance of common stock as repayment of monthly amortization payments due, $4,000,000, September 2005
-
-
388,730
389
-
-
267,835
-
-
-
268,224
Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, September 2005
-
-
322,373
322
-
-
222,115
-
-
-
222,437
Issuance of common stock in connection with conversion of $504,538 of $2,000,000 debenture, September 2005
-
-
841,309
841
-
-
503,945
-
-
-
504,786
Issuance of common stock in connection with conversion of $286,538 of $2,000,000 debenture, September 2005
-
-
477,962
478
-
-
286,299
-
-
-
286,777
Issuance of common stock in connection with conversion of $457,200 of 2nd $2,000,000 debenture, September 2005
-
-
762,000
762
-
-
456,739
-
-
-
457,501
Issuance of common stock in satisfaction of accounts payable, September 2005, $0.81
-
-
162,933
163
-
-
113,442
-
-
-
113,605
Issuance of common stock in connection with conversion of $211,538 of $2,000,000 debenture, September 2005
-
-
353,665
354
-
-
211,845
-
-
-
212,199
Issuance of common stock in connection with conversion of $150,000 of 2nd $2,000,000 debenture, September 2005
-
-
250,000
250
-
-
149,750
-
-
-
150,000
Issuance of common stock in connection with conversion of $457,317 of 2nd $2,000,000 debenture, September 2005
-
-
762,195
762
-
-
458,209
-
-
-
458,971
Issuance of common stock in conjunction with financing, 2nd $2,000,000, September 2005, $0.82
-
-
170,732
171
-
-
139,829
-
-
-
140,000
Issuance of warrants in conjunction with financing, 2nd $2,000,000, September 2005, $0.82
-
-
-
-
-
-
30,600
-
-
-
30,600
Issuance of warrants in conjunction with convertible debentures, 2nd $2,000,000, September 2005 (at $0.82)
-
-
-
-
-
-
785,185
-
-
-
785,185
Value of Beneficial Conversion Feature on Convertible Debentures, 2nd $2,000,000, September 2005 (at $0.82)
-
-
-
-
-
-
1,185,185
-
-
-
1,185,185
Issuance of common stock as repayment of monthly amortization payments due, $4,000,000, October 2005
-
-
243,836
244
-
-
163,126
-
-
-
163,370
Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, October 2005
-
-
67,949
68
-
-
45,458
-
-
-
45,526
Issuance of common stock in connection with conversion of $307,317 of 2nd $2,000,000 debenture, October 2005
-
-
512,195
512
-
-
306,805
-
-
-
307,317
Issuance of common stock in connection with conversion of $300,000 of $2,000,000 debenture, October 2005
-
-
501,397
501
-
-
300,337
-
-
-
300,838
Issuance of common stock in connection with conversion of $500,000 of $500,000 debenture, October 2005
-
-
644,003
644
-
-
527,438
-
-
-
528,082
Issuance of common stock in connection with conversion of $113,077 of  $2,000,000 debenture, October 2005
-
-
189,019
189
-
-
113,222
-
-
-
113,411
Issuance of common stock in connection with conversion of $297,692 of $4,000,000 debenture, October 2005
-
-
364,113
364
-
-
298,209
-
-
-
298,573
Exercise of stock warrants for cash, October 2005, $0.82
-
-
8,404,876
8,405
-
-
6,883,593
-
-
-
6,891,998
Exercise of stock options for cash, October 2005, $0.63
-
-
101,500
101
-
-
63,844
-
-
-
63,945
Exercise of stock options for cash, October 2005, $0.94
-
-
40,000
40
-
-
37,560
-
-
-
37,600
Issuance of common stock in connection with conversion of $100,000 of $100,000 debenture, October 2005
-
-
128,834
129
-
-
105,515
-
-
-
105,644
Issuance of warrants in conjunction with financing, $500,000, October 2005, $0.82
-
-
-
-
-
-
14,250
-
-
-
14,250
Issuance of warrants in conjunction with convertible debentures, $500,000, October 2005, $0.82
-
-
-
-
-
-
270,950
-
-
-
270,950
Issuance of warrants as exercise inducement Oct 2005, $1.20
-
-
-
-
-
-
573,146
-
-
-
573,146
Issuance of warrants as exercise inducement Oct 2005, $1.25
-
-
-
-
-
-
2,501,390
-
-
-
2,501,390
Value of Beneficial Conversion Feature on Convertible Debentures, $500,000, October 2005 (at $0.82)
-
-
-
-
-
-
229,050
-
-
-
229,050
Issuance of common stock as repayment of monthly amortization payments due, $4,000,000, Nov 2005, $1.17
-
-
108,006
108
-
-
126,259
-
-
-
126,367
Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, Nov 2005, $1.17
-
-
16,753
17
-
-
19,584
-
-
-
19,601
Exercise of stock options for cash, November 2005, $0.94
-
-
100,000
100
-
-
93,900
-
-
-
94,000
Exercise of stock options for cash, November 2005, $0.63
-
-
1,500
2
-
-
944
-
-
-
946
Exercise of stock warrants for cash, November 2005, $0.82
-
-
3,058,536
3,058
-
-
2,504,942
-
-
-
2,508,000
Issuance of common stock in exchange for the services rendered November 2005, $0.97
-
-
64,287
64
-
-
62,294
-
-
-
62,358
Issuance of common stock in connection with conversion of $42,800 of 2nd $2,000,000 debenture, Nov 2005, $1.23
-
-
72,058
72
-
-
88,559
-
-
-
88,631
Issuance of common stock in exchange for the services rendered August 2005, $0.97
-
-
19,500
19
-
-
18,897
-
-
-
18,916
Issuance of common stock in connection with conversion of $230,769 of $4,000,000 debenture, November 2005,$0.97
-
-
282,721
283
-
-
273,957
-
-
-
274,240
Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, Dec 2005, $0.98
-
-
212,750
213
-
-
208,282
-
-
-
208,495
Issuance of common stock in connection with conversion of $1,451,000 of  $3,500,000 debenture, Dec 2005, $0.93
-
-
1,770,223
1,770
-
-
1,644,537
-
-
-
1,646,307
Issuance of common stock in connection with conversion of $4,221 of 2nd $2,000,000 debenture, Dec 2005, $0.85
-
-
7,042
7
-
-
5,979
-
-
-
5,986
Issuance of common stock in conjunction with financing, $3,500,000, December 2005, $0.95
-
-
224,000
224
-
-
212,576
-
-
-
212,800
Issuance of warrants in conjunction with financing, $3,500,000, December 2005, $0.82
-
-
-
-
-
-
76,650
-
-
-
76,650
Issuance of warrants in conjunction with convertible debentures, $3,500,000, December 2005, $0.82
-
-
-
-
-
-
1,648,387
-
-
-
1,648,387
Value of Beneficial Conversion Feature on Convertible Debentures, $3,500,000, December 2005,$0.82
-
-
-
-
-
-
1,851,613
-
-
-
1,851,613
Issuance of warrants as exercise inducement Dec 2005, $1.25
-
-
-
-
-
-
1,115,853
-
-
-
1,115,853
Issuance of common stock in connection with conversion of $82,000 of $3,500,000 debenture, December 2005, $0.84
-
-
100,000
100
-
-
83,900
-
-
-
84,000
Issuance of common stock as repayment of monthly amortization payments due, 2nd $2,000,000, Jan 2006, $0.81
-
-
75,149
75
-
-
60,796
-
-
-
60,871
Issuance of common stock as repayment of monthly amortization payments due, $500,000, Jan 2006, $0.81
-
-
53,612
54
-
-
43,372
-
-
-
43,426
Issuance of common stock in connection with conversion of $617,000 of $3,500,000 debenture, January 2005, $0.94
-
-
757,630
758
-
-
711,415
-
-
-
712,173
Issuance of common stock in conjunction with financing, $4,000,000, January 2006, $1.00
-
-
266,667
267
-
-
266,400
-
-
-
266,667
Issuance of warrants in conjunction with financing, $4,000,000, January 2006, $1.05
-
-
-
-
-
-
88,800
-
-
-
88,800
Issuance of warrants in conjunction with convertible debentures, 4,000,000, January 2006, $1.05
-
-
-
-
-
-
1,653,631
-
-
-
1,653,631
Value of Beneficial Conversion Feature on Convertible Debentures, 4,000,000, January 2006, $1.05
-
-
-
-
-
-
1,463,155
-
-
-
1,463,155
Exercise of stock warrants for cash, January 2006, $0.82
-
-
7,317,072
7,317
-
-
5,992,682
-
-
-
5,999,999
Issuance of warrants as exercise inducement Jan 2006, $1.60
-
-
-
-
-
-
3,109,756
-
-
-
3,109,756
Exercise of stock options for cash, January 2006, $0.63
-
-
10,000
10
-
-
6,290
-
-
-
6,300
Issuance of common stock in connection with conversion of $850,000 of $3,500,000 debenture, January 2006, $1.06
-
-
1,045,779
1,046
-
-
1,107,480
-
-
-
1,108,526
Issuance of common stock as repayment of monthly amortization payments due, $500,000, Feb 2006, $1.23
-
-
49,812
50
-
-
61,219
-
-
-
61,269
Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, Feb 2006, $1.23
-
-
67,746
68
-
-
83,260
-
-
-
83,328
Issuance of common stock as employee compensation, December 2005, $0.90
-
-
140,115
140
-
-
125,964
-
-
-
126,104
Exercise of stock warrants for cash, February 2006, $0.82
-
-
303,902
304
-
-
248,896
-
-
-
249,200
Issuance of common stock in exchange for the services rendered February 2006, $1.53
-
-
50,000
50
-
-
76,450
-
-
-
76,500
Exercise of stock options for cash, February 2006, $0.94
-
-
80,000
80
-
-
75,120
-
-
-
75,200
Exercise of stock options for cash, February 2006, $1.59
-
-
80,000
80
-
-
127,120
-
-
-
127,200
Exercise of stock options for cash, February 2006, $1.38
-
-
20,000
20
-
-
27,580
-
-
-
27,600
Exercise of stock warrants for cash, February 2006, $1.05
-
-
3,809,524
3,810
-
-
3,996,191
-
-
-
4,000,001
Exercise of stock warrants for cash, February 2006, $1.20
-
-
909,756
910
-
-
1,090,797
-
-
-
1,091,707
Exercise of stock warrants for cash, February 2006, $1.25
-
-
4,578,048
4,578
-
-
5,717,982
-
-
-
5,722,560
Exercise of stock warrants for cash, February 2006, $1.72
-
-
34,782
35
-
-
59,790
-
-
-
59,825
Issuance of common stock in connection with conversion of $950,000 of Jan $4,000,000 debenture, Feb 2006, $2.38
-
-
904,762
905
-
-
2,152,429
-
-
-
2,153,334
Issuance of warrants in conjunction with convertible debentures, 4,000,000, February 2006, $1.05
-
-
-
-
-
-
2,374,507
-
-
-
2,374,507
Value of Beneficial Conversion Feature on Convertible Debentures, 4,000,000, February 2006, $1.05
-
-
-
-
-
-
1,625,493
-
-
-
1,625,493
Issuance of warrants as exercise inducement Feb 2006, $3.00
-
-
-
-
-
-
8,294,141
-
-
-
8,294,141
Issuance of common stock in connection with conversion of $1,550,000 of Jan $4,000,000 debenture, Mar 2006, $2.21
-
-
1,485,349
1,485
-
-
3,281,136
-
-
-
3,282,621
Exercise of stock warrants for cash, March 2006, $1.72
-
-
347,913
348
-
-
598,062
-
-
-
598,410
Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, Mar 2006, $2.31
-
-
67,094
67
-
-
154,920
-
-
-
154,987
Issuance of common stock as repayment of monthly amortization payments due, $500,000, March 2006, $2.31
-
-
49,312
49
-
-
113,861
-
-
-
113,910
Issuance of common stock as repayment of monthly amortization payments due, $3,500,000, Mar 2006, $2.31
-
-
55,644
56
-
-
128,482
-
-
-
128,538
Issuance of common stock in exchange for the services rendered March 2006, $2.31
-
-
50,000
50
-
-
115,450
-
-
-
115,500
Exercise of stock options for cash, March 2006, $0.94
-
-
300,222
300
-
-
281,909
-
-
-
282,209
Issuance of common stock in connection with conversion of $2,350,000 of Feb $4,000,000 debenture, Mar 2006, $2.31
-
-
1,880,000
1,880
-
-
4,340,920
-
-
-
4,342,800
Exercise of stock options for cash, March 2006, $1.47
-
-
274,500
274
-
-
403,241
-
-
-
403,515
Exercise of stock warrants for cash, March 2006, $1.25
-
-
1,600,000
1,600
-
-
1,998,400
-
-
-
2,000,000
Exercise of stock warrants for cash, March 2006, $0.91
-
-
60,000
60
-
-
54,540
-
-
-
54,600
Exercise of stock options for cash, March 2006, $1.59
-
-
263,700
264
-
-
419,019
-
-
-
419,283
Issuance of common stock in connection with conversion of $500,000 of Feb $4,000,000 debenture, Mar 2006, $2.20
-
-
400,592
401
-
-
880,902
-
-
-
881,303
Exercise of stock warrants for cash, March 2006, $0.82
-
-
48,000
48
-
-
39,312
-
-
-
39,360
Exercise of stock warrants for cash, March 2006, $1.05
-
-
46,000
46
-
-
48,254
-
-
-
48,300
Issuance of common stock in connection with conversion of $200,000 of Jan $4,000,000 debenture, March 2006, $2.31
-
-
192,136
192
-
-
443,642
-
-
-
443,834
Exercise of stock options for cash, March 2006, $1.71
-
-
180,000
180
-
-
307,620
-
-
-
307,800
Issuance of common stock in connection with conversion of $384,615 of $500,000 debenture, March 2006, $3.33
-
-
470,450
470
-
-
1,566,129
-
-
-
1,566,599
Exercise of stock warrants for cash, March 2006, $1.68
-
-
1,639,344
1,639
-
-
2,752,459
-
-
-
2,754,098
Cashless exercise of stock warrants, March 2006, $2.50
-
-
8,179
8
-
-
(8
)
-
-
-
-
Exercise of stock warrants for cash, March 2006, $1.25
-
-
68,000
68
-
-
84,932
-
-
-
85,000
Exercise of stock options for cash, March 2006, $2.10
-
-
175,000
175
-
-
367,325
-
-
-
367,500
Exercise of stock options for cash, March 2006, $1.10
-
-
150,000
150
-
-
164,850
-
-
-
165,000
Exercise of stock options for cash, March 2006, $1.52
-
-
150,000
150
-
-
227,850
-
-
-
228,000
Exercise of stock options for cash, March 2006, $2.19
-
-
150,000
150
-
-
328,350
-
-
-
328,500
Exercise of stock warrants for cash, March 2006, $2.15
-
-
2,000
2
-
-
4,298
-
-
-
4,300
Exercise of stock warrants for cash, March 2006, $1.88
-
-
31,000
31
-
-
58,249
-
-
-
58,280
Exercise of stock warrants for cash, March 2006, $2.02
-
-
23,438
23
-
-
47,322
-
-
-
47,345
Exercise of stock options for cash, March 2006, $0.63
-
-
120,750
121
-
-
75,952
-
-
-
76,073
Exercise of stock warrants for cash, March 2006, $1.86
-
-
170,068
170
-
-
316,156
-
-
-
316,326
Issuance of common stock in exchange for the services rendered March 2006, $2.96
-
-
25,000
25
-
-
73,975
-
-
-
74,000
Issuance of common stock in satisfaction of accounts payable March 2006, $3.20
-
-
2,390
2
-
-
7,646
-
-
-
7,648
Issuance of warrants as exercise inducement Mar 2006, $3.00
-
-
-
-
-
-
1,293,953
-
-
-
1,293,953
Issuance of common stock as repayment of monthly amortization payments due, $2,000,000, April 2006, $2.70
-
-
67,083
67
-
-
181,057
-
-
-
181,124
Issuance of common stock as repayment of monthly amortization payments due, $3,500,000, April 2006, $2.70
-
-
49,812
50
-
-
134,443
-
-
-
134,493
Issuance of common stock as repayment of monthly amortization payments due, Jan $4,000,000, Apr 2006, $2.70
-
-
167,144
167
-
-
451,122
-
-
-
451,289
Exercise of stock warrants for cash, April 2006, $1.88
-
-
29,000
29
-
-
54,491
-
-
-
54,520
Exercise of stock options for cash, April 2006, $1.47
-
-
95,500
95
-
-
140,290
-
-
-
140,385
Issuance of common stock in connection with conversion of $307,692 of 2nd $2,000,000 debenture, April 2006, $2.63
-
-
513,158
513
-
-
1,349,092
-
-
-
1,349,605
Issuance of common stock in connection with conversion of $423,077 of  $3,500,000 debenture, April 2005, $2.63
-
-
516,291
516
-
-
1,357,329
-
-
-
1,357,845
Issuance of common stock in connection with conversion of $923,077 of Jan $4,000,000 debenture, April 2006, $2.63
-
-
879,699
880
-
-
2,312,729
-
-
-
2,313,609
Exercise of stock options for cash, April 2006, $0.94
-
-
25,000
25
-
-
23,475
-
-
-
23,500
Exercise of stock warrants for cash, April 2006, $0.82
-
-
132,000
132
-
-
108,108
-
-
-
108,240
Exercise of stock warrants for cash, April 2006, $0.91
-
-
60,000
60
-
-
54,540
-
-
-
54,600
Exercise of stock warrants for cash, April 2006, $1.05
-
-
69,000
69
-
-
72,381
-
-
-
72,450
Issuance of common stock in satisfaction of deposit April 2006, $1.25
-
-
204,465
204
-
-
255,377
-
-
-
255,581
Issuance of common stock in exchange for the services rendered April 2006, $2.67
-
-
38,400
38
-
-
102,490
-
-
-
102,528
Issuance of warrants in exchange for the services rendered April 2006, $2.66
-
-
-
-
-
-
137,200
-
-
-
137,200
Issuance of common stock as repayment of monthly amortization payments due, Jan $4,000,000, May 2006, $3.10
-
-
74,322
74
-
-
230,324
-
-
-
230,398
Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000, May 2006, $3.10
-
-
172,713
173
-
-
535,238
-
-
-
535,411
Exercise of stock options for cash, May 2006, $2.10
-
-
25,000
25
-
-
52,475
-
-
-
52,500
Exercise of stock options for cash, May 2006, $1.47
-
-
10,000
10
-
-
14,690
-
-
-
14,700
Issuance of warrants in exchange for the services rendered May 2006, $1.91
-
-
-
-
-
-
35,250
-
-
-
35,250
Issuance of common stock as employee compensation May 2006, $1.88
-
-
755,000
755
-
-
1,418,645
-
-
-
1,419,400
Issuance of common stock in exchange for the services rendered May 2006, $1.85
-
-
3,784
4
-
-
6,997
-
-
-
7,001
Issuance of common stock in exchange for the services rendered May 2006, $1.88
-
-
38,000
38
-
-
71,402
-
-
-
71,440
Issuance of common stock as repayment of monthly amortization payments due, Jan $4,000,000, Jun 2006, $1.96
-
-
73,979
74
-
-
144,925
-
-
-
144,999
Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000, Jun 2006, $1.96
-
-
83,911
84
-
-
164,382
-
-
-
164,466
Exercise of stock warrants for cash, June 2006, $1.25
-
-
1,327,880
1,328
-
-
1,658,522
-
-
-
1,659,850
Exercise of stock warrants for cash, June 2006, $1.60
-
-
3,036,310
3,036
-
-
4,855,060
-
-
-
4,858,096
Issuance of warrants as exercise inducement June 2006, $2.35
-
-
-
-
-
-
4,549,670
-
-
-
4,549,670
Issuance of common stock for cash pursuant to private placement, June 2006, $2.05
-
-
3,414,636
3,415
-
-
6,996,589
-
-
-
7,000,004
Issuance of common stock in exchange for the services rendered June 2006, $1.85
-
-
3,784
4
-
-
6,997
-
-
-
7,001
Issuance of common stock as repayment of monthly amortization payments due, Jan $4,000,000, July 2006, $1.75
-
-
66,264
66
-
-
115,896
-
-
-
115,962
Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000, July 2006, $1.75
-
-
64,923
65
-
-
113,550
-
-
-
113,615
Issuance of common stock in exchange for the services rendered July 2006, $1.40
-
-
5,000
5
-
-
6,995
-
-
-
7,000
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(67,967,204
)
-
(67,967,204
)
Other comprehensive income (loss)
Currency translation adjustment
-
-
-
-
-
-
-
-
-
185,232
185,232
Total Comprehensive Income (Loss)
(67,967,204
)
185,232
(67,781,972
)
Balance at July 31, 2006
1,000
$
1
107,398,360
$
107,397
$
-
$
-
$
243,097,627
$
-
$
(188,495,312
)
$
754,081
$
55,463,794
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
15
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 2006
1,000
$
1
107,398,360
$
107,397
$
-
$
-
$
243,097,627
$
-
$
(188,495,312
)
$
754,081
$
55,463,794
Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000,  Aug 2006, $1.48
-
-
64,718
65
-
-
95,718
-
-
-
95,783
Issuance of common stock in exchange for the services rendered Aug 2006, $1.43
-
-
25,000
25
-
-
35,725
-
-
-
35,750
Issuance of common stock as repayment of monthly amortization payments due Feb $4,000,000, Sep 2006 $1.53
-
-
64,400
64
-
-
98,468
-
-
-
98,532
Issuance of common stock in exchange for the services rendered Oct 2006, $1.50
-
-
25,000
25
-
-
37,475
-
-
-
37,500
Issuance of common stock as repayment of monthly amortization payments due , Feb $4,000,000, Oct 2006, $1.65
-
-
64,000
64
-
-
105,536
-
-
-
105,600
Issuance of common stock in exchange for the services rendered Oct 2006, $1.83
-
-
27,262
27
-
-
49,862
-
-
-
49,889
Issuance of common stock in exchange for the services rendered Oct 2006, $1.50
-
-
25,000
25
-
-
37,475
-
-
-
37,500
Issuance of common stock as employee compensation Oct 2006, $1.83
-
-
100,000
100
-
-
182,900
-
-
-
183,000
Exercise of stock warrants for cash, Oct 2006, $1.25
-
-
100,000
100
-
-
124,900
-
-
-
125,000
Exercise of stock options for cash, Oct 2006, $1.59
-
-
90,300
90
-
-
143,487
-
-
-
143,577
Exercise of stock options for cash, Oct 2006, $1.47
-
-
6,500
6
-
-
9,549
-
-
-
9,555
Issuance of common stock as repayment of monthly amortization payments due Feb $4,000,000, Nov 2006, $2.02
-
-
63,764
64
-
-
128,740
-
-
-
128,804
Exercise of stock options for cash, Nov 2006, $1.59
-
-
15,000
15
-
-
23,835
-
-
-
23,850
Issuance of common stock in exchange for the services rendered Nov 2006, $2.15
-
-
50,000
50
-
-
107,450
-
-
-
107,500
Issuance of common stock as repayment of monthly amortization payments due, Feb $4,000,000, Dec 2006, $2.08
-
-
63,384
63
-
-
131,775
-
-
-
131,838
Issuance of common stock in exchange for the services rendered Dec 2006, $1.68
-
-
25,000
25
-
-
41,975
-
-
-
42,000
Issuance of common stock in exchange for the services rendered Jan 2007, $1.77
-
-
25,000
25
-
-
44,225
-
-
-
44,250
Issuance of common stock in connection with conversation of $52,554 of Feb $4,000,000 debenture, Jan, $1.74
-
-
42,043
42
-
-
73,113
-
-
-
73,155
Issuance of common stock in connection with conversion of 52,554 of Feb $4,000,000 debenture, Jan, $1.77
-
-
42,043
42
-
-
74,374
-
-
-
74,416
Issuance of common stock in exchange for the services rendered Feb 2007, $1.90
-
-
25,000
25
-
-
47,475
-
-
-
47,500
Issuance of common stock in exchange for the services rendered Mar 2007, $1.71
-
-
100,000
100
-
-
170,900
-
-
-
171,000
Issuance of common stock as employee compensation Mar 2007,$1.71
-
-
9,844
10
-
-
16,823
-
-
-
16,833
Issuance of warrants in exchange for the services rendered Mar 2007,$1.71
-
-
-
-
125,000
-
-
-
125,000
Issuance of common stock as employee compensation Mar 2007, $1.71
-
-
296,000
296
-
-
505,864
-
-
-
506,160
Issuance of common stock in exchange for the services rendered Mar 2007, $1.65
-
-
13,637
13
-
-
22,487
-
-
-
22,500
Issuance of common stock in exchange for the services rendered Mar 2007, $1.69
-
-
25,000
25
-
-
42,225
-
-
-
42,250
Issuance of common stock in connection with conversion of $52,554 of Feb $4,000,000 debenture, Mar 2007, $1.71
-
-
42,043
42
-
-
71,851
-
-
-
71,893
Issuance of common stock as employee compensation Mar 2007, $1.70
-
-
4,951
5
-
-
8,412
-
-
-
8,417
Issuance of common stock in exchange for the services rendered Apr 2007, $1.71
-
-
22,728
23
-
-
38,842
-
-
-
38,865
Preferred Shares Redemption, April 2007
(1,000
)
(1
)
-
-
-
-
(99
)
-
-
-
(100
)
Issuance of common stock in exchange for the services rendered Apr 2007, $1.65
-
-
13,637
14
-
-
22,486
-
-
-
22,500
Issuance of common stock in exchange for the services rendered Apr 2007, $1.69
-
-
25,000
25
-
-
42,225
-
-
-
42,250
Issuance of common stock as employee compensation Apr 2007, $1.64
-
-
5,132
5
-
-
8,411
-
-
-
8,416
Issuance of common stock in connection with conversion of $52,554 of Feb $4,000,000 debenture, Apr 2007, $1.61
-
-
42,043
42
-
-
67,647
-
-
-
67,689
Issuance of common stock in exchange for the services rendered May 2007, $1.60
-
-
22,728
23
-
-
36,342
-
-
-
36,365
Exercise of stock options for cash, May 2007, $0.63
-
-
5,000
5
-
-
3,145
-
-
-
3,150
Issuance of common stock in exchange for the services rendered May 2007, $1.47
-
-
25,000
25
-
-
36,725
-
-
-
36,750
Issuance of common stock in exchange for the services rendered May 2007, $1.47
-
-
13,637
14
-
-
20,033
-
-
-
20,047
Issuance of common stock as employee compensation May 2007, $1.45
-
-
5,805
6
-
-
8,411
-
-
-
8,417
Issuance of common stock as employee compensation May 2007, $1.45
-
-
450,000
450
-
-
652,050
-
-
-
652,500
Issuance of warrants in exchange for the services rendered May 2007, $1.45
-
-
-
-
141,400
-
-
-
141,400
Cancellation of common stock, May 2007, $1.45
-
-
(150,000
)
(150
)
-
-
150
-
-
-
-
Issuance of common stock in exchange for the services rendered Jun 2007 , $1.40
-
-
22,728
23
-
-
31,796
-
-
-
31,819
Issuance of common stock in exchange for the services rendered Jun 2007, $1.83
-
-
13,637
14
-
-
24,942
-
-
-
24,956
Issuance of common stock in exchange for services rendered Jun 2007, $1.80
-
-
25,000
25
-
-
44,975
-
-
-
45,000
Issuance of common stock as employee compensation, Jul 2007, $1.78
-
-
4,728
5
-
-
8,411
-
-
-
8,416
Issuance of common stock in exchange for the services rendered Jul 2007, $1.78
-
-
22,728
23
-
-
40,433
-
-
-
40,456
Exercise of stock options for cash, Jul 2007, $0.94
-
-
70,000
70
-
-
65,730
-
-
-
65,800
Exercise of stock options for cash, Jul 2007, $0.56
-
-
100,000
100
-
-
55,900
-
-
-
56,000
Issuance of common stock in exchange for the services rendered Jul 2007, $1.75
-
-
13,637
14
-
-
23,851
-
-
-
23,865
Issuance of common stock in exchange for the services rendered Jul 2007, $1.68
-
-
25,000
25
-
-
41,975
-
-
-
42,000
Issuance of common stock as employee compensation April 2007, $1.65
-
-
5,101
5
-
-
8,412
-
-
-
8,417
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(23,504,958
)
-
(23,504,958
)
Other comprehensive income (loss)
Currency translation adjustment
-
-
-
-
-
-
-
-
-
127,726
127,726
Total Comprehensive Income (Loss)
(23,504,958
)
127,726
(23,377,232
)
Balance at July 31, 2007
-
-
109,616,518
109,616
-
-
247,079,439
-
(212,000,270
)
881,807
36,070,592
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
16
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance, August 1, 2007
-
$
-
109,616,518
$
109,616
-
$
-
$
247,079,439
$
-
$
(212,000,270
)
$
881,807
$
36,070,592
Issuance of common stock in exchange for the services rendered August 2007,  $1.57
-
-
22,728
23
-
-
35,660
-
-
-
35,683
Issuance of restricted common stock to officers as employee compensation August 2007
-
-
550,000
550
-
-
(550
)
-
-
-
-
Stock-based compensation - officers
-
-
-
-
-
-
527,909
-
-
-
527,909
Issuance of common stock as employee compensation August 2007, $1.51 (Issued under the 2006 Plan and fully vested)
-
-
100,000
100
-
-
150,900
-
-
-
151,000
Issuance of common stock as employee compensation August 2007, $1.50
-
-
5,611
6
-
-
8,411
-
-
-
8,417
Issuance of common stock in exchange for the services rendered September 2007, $1.48
-
-
22,728
22
-
-
33,615
-
-
-
33,637
Issuance of common stock in exchange for the services rendered September 2007, $1.61
-
-
8,000
8
-
-
12,872
-
-
-
12,880
Issuance of common stock in exchange for the services rendered September 2007, $1.53
-
-
50,000
50
-
-
76,450
-
-
-
76,500
Issuance of common stock as employee compensation September 2007,$1.55
-
-
5,430
5
-
-
8,411
-
-
-
8,416
Issuance of common stock in exchange for the services rendered October 2007, $1.50
-
-
22,728
23
-
-
34,069
-
-
-
34,092
Issuance of common stock as employee compensation October 2007, $1.52
-
-
446,000
446
-
-
677,474
-
-
-
677,920
Issuance of common stock in exchange for the services rendered October 2007, $1.53
-
-
8,000
8
-
-
12,232
-
-
-
12,240
Issuance of common stock in exchange for the services rendered October 2007, $1.50
-
-
37,500
38
-
-
56,213
-
-
-
56,251
Issuance of common stock as employee compensation October 2007, $1.53
-
-
5,501
6
-
-
8,411
-
-
-
8,417
Issuance of common stock in exchange for the services rendered November 2007, $1.71
-
-
22,728
23
-
-
38,842
-
-
-
38,865
Issuance of common stock in exchange for the services rendered November 2007, $1.75
-
-
8,000
8
-
-
13,992
-
-
-
14,000
Issuance of common stock as employee compensation November 2007,$1.70
-
-
4,951
5
-
-
8,412
-
-
-
8,417
Issuance of common stock in exchange for the services rendered November 2007, $1.54
-
-
228,087
228
-
-
349,771
-
-
-
349,999
Issuance of common stock in exchange for the services rendered November 2007, $1.53
-
-
98,168
98
-
-
149,903
-
-
-
150,001
Issuance of common stock in exchange for the services rendered December 2007, $1.80
-
-
22,728
23
-
-
40,888
-
-
-
40,911
Issuance of common stock in exchange for the services rendered December 2007, $1.84
-
-
8,000
8
-
-
14,712
-
-
-
14,720
Exercise of stock options for cash, December 2007, $1.59
-
-
31,000
31
-
-
49,259
-
-
-
49,290
Stock-based compensation – officers
-
-
-
-
-
-
67,242
-
-
-
67,242
Issuance of common stock in exchange for the services rendered December 2007, $1.74
-
-
50,000
50
-
-
86,950
-
-
-
87,000
Issuance of common stock as employee compensation December 2007,$1.75
-
-
4,810
5
-
-
8,413
-
-
-
8,418
Issuance of common stock in exchange for the services rendered January 2008, $1.61
-
-
22,728
23
-
-
36,569
-
-
-
36,592
Issuance of common stock in exchange for the services rendered January 2008, $1.38
-
-
8,000
8
-
-
11,032
-
-
-
11,040
Issuance of common stock in exchange for the services rendered January 2008, $1.34
-
-
37,500
37
-
-
50,213
-
-
-
50,250
Issuance of common stock as employee compensation October 2007, $1.36
-
-
6,189
6
-
-
8,411
-
-
-
8,417
Issuance of common stock in exchange for the services rendered February 2008, $1.36
-
-
22,728
23
-
-
30,887
-
-
-
30,910
Issuance of common stock in exchange for the services rendered February 2008, $1.34
-
-
8,000
8
-
-
10,712
-
-
-
10,720
Exercise of stock options for cash, February 2008, $1.00
-
-
70,000
70
-
-
69,930
-
-
-
70,000
Issuance of common stock as employee compensation February 2008, $1.32
-
-
6,376
6
-
-
8,410
-
-
-
8,416
Issuance of common stock in exchange for the services rendered March 2008, $1.00
-
-
8,000
8
-
-
7,992
-
-
-
8,000
Stock-based compensation – officers
-
-
50,000
50
-
-
67,242
-
-
-
67,292
Issuance of common stock in exchange for the services rendered March 2008, $0.95
-
-
8,093
8
-
-
47,450
-
-
-
47,458
Issuance of common stock as employee compensation March 2008, $1.04
-
-
200,000
200
-
-
8,409
-
-
-
8,609
Issuance of common stock in exchange for the services rendered March 2008, $1.14
-
-
-
-
-
-
227,800
-
-
-
227,800
Issuance of warrants in exchange for the services rendered March 2008,$3.75
-
-
-
-
-
-
52,500
-
-
-
52,500
Issuance of warrants as employee compensation March 2008, $0.94
-
-
-
-
-
-
29,500
-
-
-
29,500
Issuance of warrants in conjunction with convertible debenture, March 2008,$1.10
-
-
-
-
-
-
5,323,109
-
-
-
5,323,109
Issuance of warrants in conjunction with convertible debentures, March 2008,$1.21
-
-
-
-
-
-
5,323,109
-
-
-
5,323,109
Repurchase of common stock March 2008, $1.16
-
-
(326,255
)
(326
)
-
-
(378,130
)
-
-
-
(378,456
)
Option repricing costs March 2008
-
-
-
-
-
-
14,500
-
-
-
14,500
Value of Beneficial Conversion Feature on Convertible Debentures, March 2008, $1.21
-
-
-
-
-
-
8,768,946
-
-
-
8,768,946
Exercise of stock options for cash, April 2008, $1.00
-
-
50,000
50
-
-
49,950
-
-
-
50,000
Issuance of common stock in exchange for the services rendered April 2008,$1.19
-
-
8,000
8
-
-
9,512
-
-
-
9,520
Exercise of stock options for cash, April 2008, $0.89
-
-
250,000
250
-
-
222,250
-
-
-
222,500
Issuance of common stock in exchange for the services rendered April 2008,$1.06
-
-
37,500
37
-
-
39,713
-
-
-
39,750
Issuance of common stock as employee compensation April 2008, $1.08
-
-
7,793
8
-
-
8,409
-
-
-
8,417
Issuance of common stock in exchange for the services rendered May 2008,$1.05
-
-
8,000
8
-
-
8,392
-
-
-
8,400
Stock-based compensation - officers stock options, May 2008, $0.96
-
-
-
-
-
-
58,078
-
-
-
58,078
Issuance of common stock as employee compensation May 2008, $1.00
-
-
8,417
8
-
-
8,409
-
-
-
8,417
Stock-based compensation - officers stock
-
-
-
-
-
-
67,242
-
-
-
67,242
Issuance of common stock in exchange for the services rendered May 2008,$0.97
-
-
50,000
50
-
-
48,450
-
-
-
48,500
Issuance of common stock in exchange for the services rendered June 2008,$0.95
-
-
8,000
8
-
-
7,592
-
-
-
7,600
Issuance of common stock as employee compensation June 2008, $0.97
-
-
8,677
9
-
-
8,409
-
-
-
8,418
Issuance of common stock in exchange for the services rendered July 2008,$0.79
-
-
8,000
8
-
-
6,312
-
-
-
6,320
Issuance of common stock in exchange for the services rendered July 2008,$0.80
-
-
37,500
37
-
-
29,963
-
-
-
30,000
Issuance of common stock as employee compensation July 2008, $0.83
-
-
10,141
10
-
-
8,409
-
-
-
8,419
Comprehensive Income (Loss):
Net Loss
-
-
-
-
-
-
-
-
(36,228,991
)
-
(36,228,991
)
Other comprehensive income (loss):
Currency translation adjustment
-
-
-
-
-
-
-
-
-
32,688
32,688
Total Comprehensive Income (Loss)
(36,228,991
)
32,688
(36,196,303
)
Balance at July 31, 2008
-
$
-
111,992,603
$
111,992
-
$
-
$
269,849,581
$
-
$
(248,229,261
)
$
914,495
$
22,646,807
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
17
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance at August 1, 2008
-
-
111,992,603
111,992
-
-
269,849,581
-
(248,229,261
)
914,495
22,646,807
Issuance of common stock as repayment of monthly amortization payments on convertible notes Aug 2008, $0.65
-
-
2,891,182
2,891
-
-
1,873,775
-
-
-
1,876,666
Stock-based compensation - officers stock options
-
-
-
-
-
-
9,680
-
-
-
9,680
Issuance of common stock as employee compensation, Aug 2008, $0.56
-
-
11,690
12
-
-
8,405
-
-
-
8,417
Stock-based compensation - officers stock
-
-
-
-
-
-
29,885
-
-
-
29,885
Exercise of stock options for cash Aug 2008, $0.56
-
-
100,000
100
-
-
55,900
-
-
-
56,000
Issuance of common stock as repayment of monthly amortization payments on convertible notes Sept 2008, $0.52
-
-
3,597,214
3,597
-
-
1,873,069
-
-
-
1,876,666
Issuance of common stock in exchange for the services rendered Sept. 2008, $0.58
-
-
50,000
50
-
-
28,950
-
-
-
29,000
Issuance of common stock in exchange for the services rendered Sept. 2008, $0.53
-
-
4,000
4
-
-
2,116
-
-
-
2,120
Issuance of common stock as employee compensation Sept 2008, $0.56
-
-
15,030
15
-
-
8,402
-
-
-
8,417
Issuance of common stock as repayment of monthly amortization payments on convertible notes Oct 2008, $0.29
-
-
2,638,809
2,639
-
-
756,810
-
-
-
759,449
Issuance of common stock as repayment of interest on Convertible Notes, Oct 2008, $0.52
-
-
483,195
483
-
-
251,600
-
-
-
252,083
Issuance of common stock in exchange for the services rendered, Oct 2008, $0.32
-
-
4,000
4
-
-
1,276
-
-
-
1,280
Issuance of common stock in exchange for the services rendered, July 2008 $0.38
-
-
37,500
38
-
-
14,213
-
-
-
14,251
Issuance of common stock as employee compensation, Oct 2008, $0.31
-
-
27,151
27
-
-
8,390
-
-
-
8,417
Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, Nov 2008, $0.29
-
-
2,144,605
2,145
-
-
615,073
-
-
-
617,218
Stock-based compensation - officers stock options
-
-
-
-
-
-
9,680
-
-
-
9,680
Issuance of common stock as employee compensation, Nov 2008, $0.35
-
-
24,048
24
-
-
8,393
-
-
-
8,417
Stock-based compensation - officers stock
-
-
-
-
-
-
22,414
-
-
-
22,414
Issuance of common stock in exchange for the services rendered, Nov 2008, $0.35
-
-
4,000
4
-
-
1,396
-
-
-
1,400
Issuance of common stock in exchange for the services rendered, Nov 2008, $0.38
-
-
25,000
25
-
-
9,475
-
-
-
9,500
Issuance of common stock in exchange for the services rendered, Dec 2008, $0.45
-
-
33,335
33
-
-
14,967
-
-
-
15,000
Issuance of common stock in exchange for the services rendered, Dec 2008, $0.47
-
-
4,000
4
-
-
1,876
-
-
-
1,880
Issuance of common stock in exchange for the services rendered, Dec 2008, $0.53
-
-
68,102
68
-
-
29,932
-
-
-
30,000
Issuance of common stock as employee compensation, Dec 2008, $0.38
-
-
22,149
22
-
-
8,394
-
-
-
8,416
Warrant modification costs, Dec 2008
-
-
-
-
-
-
1,589,988
-
-
-
1,589,988
Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, Jan 2009, $0.32
-
-
4,556,989
4,557
-
-
1,372,109
-
-
-
1,376,666
Issuance of common stock in exchange for services rendered, Jan 2009, $0.34
-
-
4,000
4
-
-
1,356
-
-
-
1,360
Issuance of common stock in exchange for services rendered, Jan 2009, $0.33
-
-
37,500
38
-
-
12,338
-
-
-
12,376
Issuance of common stock in exchange for services rendered, Jan 2009, $0.33
-
-
18,182
18
-
-
5,982
-
-
-
6,000
Issuance of common stock as employee compensation, Jan 2009, $0.34
-
-
24,755
25
-
-
8,392
-
-
-
8,417
Issuance of common stock in exchange for the services rendered, Feb 2009, $0.27
-
-
22,059
22
-
-
5,978
-
-
-
6,000
Stock-based compensation - officers stock options
-
-
-
-
-
-
9,680
-
-
-
9,680
Issuance of common stock as employee compensation, Feb 2009, $0.23
-
-
36,594
37
-
-
8,380
-
-
-
8,417
Stock-based compensation - officers
-
-
-
-
-
-
22,414
-
-
-
22,414
Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, Mar 2009, $0.18
-
-
10,713,359
10,713
-
-
1,916,620
-
-
-
1,927,333
Issuance of common stock as repayment of interest on Convertible Notes, Mar 2009, $0.18
-
-
773,743
774
-
-
138,423
-
-
-
139,197
Issuance of common stock in exchange for the services rendered, Feb 2009, $0.27
-
-
4,000
4
-
-
1,076
-
-
-
1,080
Issuance of common stock in exchange for the services rendered, Mar 2009, $0.29
-
-
25,000
25
-
-
7,225
-
-
-
7,250
Issuance of common stock in exchange for the services rendered, Mar 2009, $0.30
-
-
250,000
250
-
-
74,750
-
-
-
75,000
Issuance of common stock in exchange for the services rendered, Mar 2009, $0.35
-
-
4,000
4
-
-
1,396
-
-
-
1,400
Issuance fo common stock in exchange for the services rendered, Mar 2009, $0.31
-
-
20,870
21
-
-
5,979
-
-
-
6,000
Issuance of common stock as employee compensation, Mar 2009, $0.31
-
-
27,151
27
-
-
8,390
-
-
-
8,417
Issuance of common stock in exchange for the services rendered, Mar 2009, $0.29
-
-
150,000
150
-
-
43,350
-
-
-
43,500
Issuance of common stock as repayment of monthly amortization payments
on Convertible Notes, Apr 2009, $0.28
-
-
6,783,997
6,784
-
-
1,920,550
-
-
-
1,927,334
Issuance of common stock in exchange for the services rendered, Apr 2009, $0.30
-
-
150,000
150
-
-
44,250
-
-
-
44,400
Issuance of common stock in exchange for the services rendered, Mar 2009, $0.30
-
-
150,000
150
-
-
44,850
-
-
-
45,000
Issuance of common stock in exchange for the services rendered, Apr 2009, $0.30
-
-
4,000
4
-
-
1,196
-
-
-
1,200
Issuance of common stock in exchange for the services rendered, Apr 2009, $0.39
-
-
150,000
150
-
-
58,350
-
-
-
58,500
Issuance of common stock in exchange for the services rendered, Apr 2009, $0.39
-
-
37,500
38
-
-
14,588
-
-
-
14,626
Issuance of common stock in exchange for the services rendered, Apr 2009, $0.33
-
-
18,254
18
-
-
5,982
-
-
-
6,000
Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, Apr 2009, $0.30
-
-
7,424,242
7,424
-
-
2,194,606
-
-
-
2,202,030
Cashless exercise of stock warrants, Apr 2009, $0.50
-
-
341,000
341
-
-
(341
)
-
-
-
-
Issuance of common stock as employee compensation, Apr 2009, $0.37
-
-
22,748
23
-
-
8,394
-
-
-
8,417
Issuance of common stock in exchange for the services rendered, May 2009, $0.40
-
-
15,019
15
-
-
5,985
-
-
-
6,000
Stock-based compensation - officers stock options
-
-
-
-
-
-
5,378
-
-
-
5,378
Issuance of common stock as employee compensation, May 2009, $0.38
-
-
22,149
22
-
-
8,394
-
-
-
8,416
Stock-based compensation - officers stock
-
-
-
-
-
-
22,414
-
-
-
22,414
Issuance of common stock as repayment of monthly amortization payments on Convertible Notes, May 2009, $0.33
-
-
5,840,404
5,840
-
-
1,921,493
-
-
-
1,927,333
Issuance of common stock as repayment of interest on Convertible Notes, May 2009, $0.33
-
-
341,534
341
-
-
112,365
-
-
-
112,706
Issuance of common stock for cash pursuant to private placement, May 2009, $0.33
-
-
15,151,517
15,152
-
-
4,539,848
-
-
-
4,555,000
Issuance of common stock in exchange for the services rendered, May 2009, $0.38
-
-
4,000
4
-
-
1,516
-
-
-
1,520
Issuance of common stock in exchange for the services rendered, May 2009, $0.37
-
-
25,000
25
-
-
9,225
-
-
-
9,250
Issuance of common stock in exchange for the services rendered, May 2009, $0.38
-
-
435,000
435
-
-
164,865
-
-
-
165,300
Issuance of common stock in exchange for the services rendered, May 2009, $0.37
-
-
39,000
39
-
-
14,391
-
-
-
14,430
Issuance of common stock in exchange for the services rendered, May 2009, $0.42
-
-
150,000
150
-
-
62,850
-
-
-
63,000
Issuance of options in exchange for the services rendered, May 2009, $0.29
-
-
-
-
-
-
11,000
-
-
-
11,000
Issuance of common stock in satisfaction of accounts payable, Jun 2009, $0.36-0.65
-
-
982,382
982
-
-
437,715
-
-
-
438,697
Issuance of common stock for cash pursuant to private placement, Jun 2009, $0.64
-
-
17,200,000
17,200
-
-
10,804,964
-
-
-
10,822,164
Issuance of common stock in exchange for the services rendered, Jun 2009, $0.62
-
-
4,000
4
-
-
2,476
-
-
-
2,480
Issuance of common stock in exchange for the services rendered, Jun 2009, $0.64
-
-
9,353
9
-
-
5,991
-
-
-
6,000
Issuance of common stock as employee compensation, Jun 2009, $0.57
-
-
14,766
15
-
-
8,402
-
-
-
8,417
Issuance of common stock in exchange for the services rendered, Jun 2009, $0.42
-
-
100,000
100
-
-
35,900
-
-
-
36,000
Issuance of common stock as converstion of Convertible Notes, June 2009, $0.33
-
-
4,914,251
4,914
-
-
1,616,789
-
-
-
1,621,703
Issuance of common stock for cash pursuant to private placement, Jun 2009, $0.33
-
-
230,513
231
-
-
75,839
-
-
-
76,070
Issuance of common stock in exchange for the services rendered, Jun 2009, $0.43
-
-
150,000
150
-
-
64,350
-
-
-
64,500
Issuance of common stock in exchange for the services rendered, Jun 2009, $0.76
-
-
500,000
500
-
-
379,500
-
-
-
380,000
Issuance of common stock in exchange for the services rendered, Jun 2009, $0.58
-
-
260,000
260
-
-
150,540
-
-
-
150,800
Issuance of common stock in exchange for the services rendered, Jun 2009, $0.43
-
-
200,000
200
-
-
85,800
-
-
-
86,000
Issuance of common stock in exchange for the services rendered, Jul 2009, $0.58
-
-
4,000
4
-
-
2,332
-
-
-
2,336
Issuance of common stock in exchange for the services rendered, Jul 2009, $0.56
-
-
150,000
150
-
-
83,985
-
-
-
84,135
Issuance of common stock in exchange for the services rendered, Apr 2009, $0.65
-
-
37,500
37
-
-
24,524
-
-
-
24,561
Issuance of common stock in exchange for the services rendered, Jul 2009, $0.62
-
-
9,717
10
-
-
5,991
-
-
-
6,001
Cashless exercise of stock warrants, Jun 2009, $0.33
-
-
9,567,583
9,568
-
-
(9,568
)
-
-
-
-
Issuance of common stock as employee compensation, Jul 2009, $0.66
-
-
12,753
13
-
-
8,404
-
-
-
8,417
Exercise of stock warrants for cash, July 2009, $0.33
-
-
330,817
330
-
-
108,839
-
-
-
109,169
Warrant modification costs, July 2009
-
-
-
-
-
-
1,608,616
-
-
-
1,608,616
Net Loss
-
-
-
-
-
-
-
-
(45,812,228
)
-
(45,812,228
)
Other comprehensive income (loss)
Currency translation adjustment
-
-
-
-
-
-
-
-
-
(262,908
)
(262,908
)
Total comprehensive income (loss)
(45,812,228
)
(262,908
)
(46,075,136
)
Balance at July 31, 2009
-
$
-
212,628,814
$
212,628
-
$
-
$
307,401,016
$
-
$
(294,041,489
)
$
651,587
$
14,223,742
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
18
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance at August 1, 2009
-
-
212,628,814
212,628
-
-
307,401,016
-
(294,041,489
)
651,587
14,223,742
Effect of the initial adoption of accounting for down-round provision
-
-
-
-
-
-
(13,844,822
)
(5,981,043
)
(19,825,865
)
Exercise of warrants classified as derivatives
-
-
-
-
-
-
10,020,557
-
-
-
10,020,557
Stock-based compensation - officers stock options
-
-
-
-
-
-
3,227
-
-
-
3,227
Issuance of common stock as employee compensation Aug 2009, $0.6215
-
-
13,543
14
-
-
8,403
-
-
-
8,417
Stock-based compensation - officers stock
-
-
-
-
-
-
3,736
-
-
-
3,736
Issuance of common stock for cash pursuant to private placement, Aug 2009, $0.79
-
-
8,558,013
8,558
-
-
5,152,142
-
-
-
5,160,700
Issuance of common stock in exchange for the services rendered Aug 2009, $0.61
-
-
4,000
4
-
-
2,436
-
-
-
2,440
Issuance of common stock in exchange for the services rendered Aug 2009, $0.63
-
-
100,000
100
-
-
63,200
-
-
-
63,300
Issuance of options in exchange for the services rendered May 2009, $0.46
-
-
-
-
-
-
5,653
-
-
-
5,653
Issuance of common stock in satisfaction of accounts payable, Sep 2009, $0.55-0.77
-
-
1,582,640
1,583
-
-
1,053,877
-
-
-
1,055,459
Issuance of common stock in exchange for the services rendered Sep 2009, $0.76
-
-
4,000
4
-
-
3,036
-
-
-
3,040
Issuance of common stock in exchange for the services rendered Sep 2009, $0.7215
-
-
83,335
83
-
-
60,043
-
-
-
60,126
Issuance of common stock as employee compensation Sep 2009, $0.7254
-
-
11,603
12
-
-
8,405
-
-
-
8,417
Issuance of common stock for cash pursuant to private placement, Sep 2009, $0.80
-
-
15,312,500
15,313
-
-
11,224,660
-
-
-
11,239,973
Issuance of common stock in exchange for the services rendered Sep 2009, $0.62
-
-
200,000
200
-
-
124,400
-
-
-
124,600
Issuance of common stock in exchange for the services rendered Sep 2009, $0..76
-
-
200,000
200
-
-
151,800
-
-
-
152,000
Issuance of common stock in exchange for the services rendered Oct 2009, $0.68
-
-
250,000
250
-
-
169,750
-
-
-
170,000
Issuance of common stock in exchange for the services rendered Oct 2009, $0.695
-
-
4,000
4
-
-
2,776
-
-
-
2,780
Issuance of common stock in exchange for the services rendered Oct 2009, $0.65
-
-
15,000
15
-
-
9,735
-
-
-
9,750
Issuance of common stock in exchange for the services rendered Oct 2009, $0.525
-
-
37,500
38
-
-
19,650
-
-
-
19,688
Cashless exercise of stock warrants, Jan 2010, $0.33
-
-
4,466,239
4,467
-
-
(4,466
)
-
-
-
1
Issuance of common stock in exchange for the services rendered Oct 2009, $0.525
-
-
60,000
60
-
-
31,440
-
-
-
31,500
Issuance of common stock as employee compensation Oct 2009, $0.60
-
-
14,028
14
-
-
8,403
-
-
-
8,417
Exercise of stock warrants for cash, Sep 2009, $0.33
-
-
4,599,817
4,600
-
-
1,513,340
-
-
-
1,517,940
Option modification costs, Oct 2009
-
-
-
-
-
-
875,773
-
-
-
875,773
Stock-based compensation - officers stock options
-
-
-
-
-
-
3,227
-
-
-
3,227
Issuance of common stock as employee compensation Nov 2009, $0.50
-
-
16,833
17
-
-
8,400
-
-
-
8,417
Issuance of common stock in exchange for the services rendered Nov 2009, $0.61
-
-
39,144
39
-
-
23,961
-
-
-
24,000
Issuance of common stock in exchange for the services rendered Nov 2009, $0.51
-
-
4,000
4
-
-
2,036
-
-
-
2,040
Issuance of common stock in exchange for the services rendered Nov 2009, $0.45
-
-
60,000
60
-
-
26,940
-
-
-
27,000
Issuance of common stock in exchange for the services rendered Dec 2009, $0.50
-
-
10,000
10
-
-
5,040
-
-
-
5,050
Issuance of common stock in exchange for the services rendered Dec 2009, $0.56
-
-
39,000
39
-
-
21,957
-
-
-
21,996
Issuance of common stock in satisfaction of accounts payable, Dec 2009, $0.48-0.67
-
-
1,713,030
1,713
-
-
934,666
-
-
-
936,379
Issuance of common stock in exchange for the services rendered Dec 2009, $0.61
-
-
4,000
4
-
-
2,436
-
-
-
2,440
Issuance of warrants in exchange for the services rendered Dec 2009, $0.51
-
-
-
-
-
-
505,000
-
-
-
505,000
Issuance of options in exchange for the services rendered Dec 2009, $0.46
-
-
-
-
-
-
24,766
-
-
-
24,766
Issuance of common stock in exchange for the services rendered Dec 2009, $0.57
-
-
10,565
11
-
-
5,989
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Dec 2009, $0.53
-
-
60,000
60
-
-
31,740
-
-
-
31,800
Issuance of common stock as employee compensation Dec 2009, $0.56
-
-
15,030
15
-
-
8,402
-
-
-
8,417
Issuance of common stock in exchange for the services rendered Jan 2010, $0.67
-
-
4,000
4
-
-
2,676
-
-
-
2,680
Issuance of common stock in exchange for the services rendered Jan 2010, $0.59
-
-
5,000
5
-
-
2,945
-
-
-
2,950
Issuance of common stock in exchange for the services rendered Jan 2010, $0.62
-
-
9,615
10
-
-
5,990
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Jan 2010, $0.63
-
-
37,500
38
-
-
23,588
-
-
-
23,626
Cashless exercise of stock warrants, Jan 2010, $0.33
-
-
779,220
779
-
-
(779
)
-
-
-
-
Issuance of common stock in exchange for the services rendered Jan 2010, $0.63
-
-
60,000
60
-
-
37,740
-
-
-
37,800
Issuance of common stock as employee compensation Jan 2010, $0.64
-
-
13,221
13
-
-
8,403
-
-
-
8,416
Stock-based compensation - stock options
-
-
-
-
-
-
499,469
-
-
-
499,469
Issuance of common stock as employee compensation Feb 2010, $0.60
-
-
14,044
14
-
-
8,403
-
-
-
8,417
Issuance of common stock in exchange for the services rendered Feb 2010, $0.60
-
-
9,921
10
-
-
5,990
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Feb 2010, $0.59
-
-
4,000
4
-
-
2,340
-
-
-
2,344
Issuance of warrants in exchange for the services rendered Mar 2010, $1.25
-
-
-
-
-
-
86,000
-
-
-
86,000
Issuance of common stock in exchange for the services rendered Feb, $0.625
-
-
60,000
60
-
-
37,440
-
-
-
37,500
Issuance of common stock in exchange for the services rendered Mar 2010, $0.64
-
-
10,000
10
-
-
6,430
-
-
-
6,440
Issuance of common stock in exchange for the services rendered Mar 2010, $0.62
-
-
483,871
484
-
-
299,516
-
-
-
300,000
Issuance of common stock in exchange for the services rendered Mar 2010, $0.62
-
-
300,000
300
-
-
187,200
-
-
-
187,500
Issuance of common stock in exchange for the services rendered Mar 2010, $0.53
-
-
200,000
200
-
-
106,360
-
-
-
106,560
Issuance of common stock in satisfaction of accounts payable, Mar 2010, $0.45-0.65
-
-
1,198,808
1,199
-
-
693,896
-
-
-
695,095
Issuance of common stock in exchange for the services rendered Mar 2010, $0.64
-
-
4,000
4
-
-
2,556
-
-
-
2,560
Issuance of options in exchange for the services rendered Mar 2010, $0.64
-
-
-
-
-
-
23,959
-
-
-
23,959
Issuance of common stock in exchange for the services rendered Mar 2010, $0.60
-
-
9,977
10
-
-
5,990
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Mar 2010, $0.54
-
-
60,000
60
-
-
32,262
-
-
-
32,322
Issuance of common stock as employee compensation Mar 2010, $0.56
-
-
14,912
15
-
-
8,402
-
-
-
8,417
Issuance of common stock in exchange for the services rendered Apr 2010, $0.49
-
-
4,000
4
-
-
1,956
-
-
-
1,960
Issuance of common stock in exchange for the services rendered Apr 2010, $0.53
-
-
5,000
5
-
-
2,663
-
-
-
2,668
Issuance of common stock in exchange for the services rendered Apr 2010, $0.47
-
-
12,637
13
-
-
5,987
-
-
-
6,000
Issuance of common stock for cash pursuant to private placement, Apr 2010, $0.47
-
-
2,000,000
2,000
-
-
870,373
-
-
-
872,373
Issuance of common stock for cash pursuant to private placement, Apr 2010, $0.4258
-
-
2,000,000
2,000
-
-
813,036
-
-
-
815,036
Issuance of common stock for cash pursuant to private placement, Apr 2010, $0.42
-
-
2,000,000
2,000
-
-
792,300
-
-
-
794,300
Issuance of common stock in exchange for the services rendered Apr 2010, $0.45
-
-
37,500
38
-
-
16,838
-
-
-
16,876
Cashless exercise of stock warrants, Apr 2010, $0.33
-
-
2,390,167
2,390
-
-
(2,390
)
-
-
-
0
Exercise of stock warrants for cash, Apr 2010, $0.33
-
-
170,068
170
-
-
55,952
-
-
-
56,122
Issuance of common stock in exchange for the services rendered Apr 2010, $0.45
-
-
5,000
5
-
-
2,245
-
-
-
2,250
Issuance of common stock in exchange for the services rendered Apr 2010, $0.45
-
-
60,000
60
-
-
26,940
-
-
-
27,000
Issuance of common stock as employee compensation Apr 2010, $0.46
-
-
18,270
18
-
-
8,399
-
-
-
8,417
Stock-based compensation - stock options
-
-
-
-
-
-
272,206
-
-
-
272,206
Issuance of common stock as employee compensation May 2010, $0.38
-
-
22,211
22
-
-
8,394
-
-
-
8,416
Issuance of common stock in exchange for the services rendered May 2010, $0.38
-
-
15,752
16
-
-
5,984
-
-
-
6,000
Issuance of common stock in exchange for the services rendered May 2010, $0.33
-
-
4,000
4
-
-
1,296
-
-
-
1,300
Issuance of common stock in exchange for the services rendered May, $0.39
-
-
60,000
60
-
-
23,460
-
-
-
23,520
Issuance of common stock in exchange for the services rendered May 2010, $0.39
-
-
5,000
5
-
-
1,955
-
-
-
1,960
Issuance of common stock in exchange for the services rendered Jul 2010, $0.33
-
-
54,545
55
-
-
17,945
-
-
-
18,000
Issuance of common stock in satisfaction of accounts payable, Jun 2010, $0.33-0.37
-
-
936,895
937
-
-
324,725
-
-
-
325,662
Issuance of common stock in exchange for the services rendered Jun 2010, $0.35
-
-
4,000
4
-
-
1,396
-
-
-
1,400
Issuance of options in exchange for the services rendered Jul 2010, $0.38
-
-
-
-
-
-
28,600
-
-
-
28,600
Issuance of options in exchange for the services rendered Mar 2010, $0.64
-
-
-
-
-
-
24,766
-
-
-
24,766
Issuance of common stock in exchange for the services rendered Jun 2010, $0.35
-
-
15,385
15
-
-
5,985
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Jun 2010, $0.32
-
-
60,000
60
-
-
19,284
-
-
-
19,344
Issuance of common stock as employee compensation Jun 2010, $0.33
-
-
25,209
25
-
-
8,392
-
-
-
8,417
Issuance of common stock in exchange for the services rendered Jul 2010, $0.35
-
-
4,000
4
-
-
1,376
-
-
-
1,380
Issuance of common stock in exchange for the services rendered Jun 2010, $0.32
-
-
5,000
5
-
-
1,607
-
-
-
1,612
Issuance of common stock in exchange for the services rendered Jun 2010, $0.35
-
-
150,000
150
-
-
52,950
-
-
-
53,100
Issuance of common stock in exchange for the services rendered Jul 2010, $0.35
-
-
18,912
19
-
-
5,981
-
-
-
6,000
Issuance of common stock for cash pursuant to private placement, May 2010, $0.35
-
-
2,000,000
2,000
-
-
666,732
-
-
-
668,732
Issuance of common stock for cash pursuant to private placement, May 2010, $0.35
-
-
2,000,000
2,000
-
-
669,420
-
-
-
671,420
Issuance of common stock for cash pursuant to private placement, Jun 2010, $0.35
-
-
2,000,000
2,000
-
-
675,756
-
-
-
677,756
Issuance of common stock in exchange for the services rendered Jul 2010, $0.40
-
-
37,500
38
-
-
14,963
-
-
-
15,001
Issuance of common stock in exchange for the services rendered Jul 2010, $0.40
-
-
60,000
60
-
-
23,940
-
-
-
24,000
Issuance of common stock as employee compensation July 2010, $0.35
-
-
23,841
24
-
-
8,393
-
-
-
8,417
Net Loss
-
-
-
-
-
-
(25,279,940
)
(25,279,940
)
Other comprehensive income (loss)
-
Currency translation adjustment
-
-
-
-
-
-
-
-
-
132,596
132,596
Total comprehensive income (loss)
(25,279,940
)
132,596
(25,147,344
)
Balance at July 31, 2010
-
$
-
269,599,615
$
269,600
-
$
-
$
333,219,309
$
-
$
(325,302,472
)
$
784,183
$
8,970,620
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
19
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDERS' (DEFICIENCY)/EQUITY
FOR THE PERIOD NOVEMBER
2, 1995 (DATE OF INCEPTION) TO JULY 31, 2011
Deficit
SVR
Notes
Accumulated
Accumulated
Preferred
Common
Treasury
Additional
Receivable -
During the
Other
Total
Stock
Stock
Stock
Paid-In
Common
Development
Comprehensive
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Stock
Stage
Income (Loss)
(Deficiency)/Equity
Balance at August 1, 2010
-
-
269,599,615
269,600
-
-
333,219,309
-
(325,302,472
)
784,183
8,970,620
Stock-based compensation - stock options
-
-
-
-
47,672
-
-
-
47,672
Issuance of common stock as employee compensation Aug 2010, $0.43
-
-
19,701
20
-
-
8,397
-
-
-
8,417
Issuance of common stock in exchange for the services rendered May 2010, $0.40
-
-
14,881
15
-
-
5,985
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Aug 2010, $0.36
-
-
4,000
4
-
-
1,436
-
-
-
1,440
Issuance of common stock in exchange for the services rendered Aug, $0.38
-
-
60,000
60
-
-
22,740
-
-
-
22,800
Cashless exercise of stock warrants, Sep 2010, $0.001
-
-
998,118
998
-
-
(998
)
-
-
-
-
Issuance of common stock in satisfaction of accounts payable, Sep 2010, $0.36-0.49
-
-
532,389
532
-
-
221,889
-
-
-
222,421
Issuance of common stock in exchange for the services rendered Sep 2010, $0.41
-
-
4,000
4
-
-
1,629
-
-
-
1,633
Issuance of options in exchange for the services rendered Sep 2010, $0.64
-
-
-
-
24,766
-
-
-
24,766
Issuance of common stock in exchange for the services rendered Sep 2010, $0.45
-
-
13,239
13
-
-
5,987
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Sep 2010, $0.49
-
-
60,000
60
-
-
29,340
-
-
-
29,400
Issuance of common stock as employee compensation Sep 2010, $0.50
-
-
16,876
17
-
-
8,400
-
-
-
8,417
Issuance of common stock in exchange for the services rendered Oct 2010, $0.37
-
-
4,000
4
-
-
1,476
-
-
-
1,480
Issuance of common stock in exchange for the services rendered Oct 2010, $0.45
-
-
73,000
73
-
-
32,777
-
-
-
32,850
Issuance of common stock in exchange for the services rendered Oct 2010, $0.45
-
-
150,000
150
-
-
67,350
-
-
-
67,500
Issuance of common stock in exchange for the services rendered Oct 2010, $0.40
-
-
15,024
15
-
-
5,985
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Oct 2010, $0.45
-
-
300,000
300
-
-
134,700
-
-
-
135,000
Issuance of common stock in exchange for the services rendered Oct 2010, $0.45
-
-
2,500,000
2,500
-
-
1,122,500
-
-
-
1,125,000
Issuance of common stock in exchange for the services rendered Oct 2010, $0.34
-
-
150,000
150
-
-
51,450
-
-
-
51,600
Issuance of common stock as employee compensation Oct 2010, $0.36
-
-
23,651
24
-
-
8,393
-
-
-
8,417
Stock-based compensation - stock options
-
-
-
-
43,037
-
-
-
43,037
Issuance of common stock as employee compensation Nov 2010, $0.31
-
-
27,340
27
-
-
8,389
-
-
-
8,416
Issuance of common stock in exchange for the services rendered Nov 2010, $0.31
-
-
19,119
19
-
-
5,981
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Nov 2010, $0.30
-
-
4,000
4
-
-
1,228
-
-
-
1,232
Issuance of common stock in exchange for the services rendered Nov 2010, $0.30
-
-
150,000
150
-
-
45,600
-
-
-
45,750
Exercise of stock options for cash, Jan 2011, $0.001
-
-
576,752
577
-
-
0
-
-
-
577
Issuance of common stock in satisfaction of accounts payable, Dec 2010, $0.29-0.33
-
-
2,520,253
2,520
-
-
783,278
-
-
-
785,798
Issuance of common stock in exchange for the services rendered Dec 2010, $0.32
-
-
4,000
4
-
-
1,276
-
-
-
1,280
Issuance of options in exchange for the services rendered Dec 2010, $0.64
-
-
-
-
24,766
-
-
-
24,766
Issuance of common stock in exchange for the services rendered Dec 2010, $0.30
-
-
19,950
20
-
-
5,980
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Dec 2010, $0.29
-
-
150,000
150
-
-
43,200
-
-
-
43,350
Issuance of common stock as employee compensation Dec 2010, $0.29
-
-
28,786
29
-
-
8,388
-
-
-
8,417
Issuance of common stock in exchange for the services rendered Oct 2010, $0.37
-
-
4,000
4
-
-
1,476
-
-
-
1,480
Issuance of common stock for cash pursuant to private placement,Jan 2011, $0.25
-
-
12,720,000
12,720
-
-
332,280
-
-
-
345,000
Issuance of common stock in exchange for the services rendered Dec 2010, $0.31
-
-
150,000
150
-
-
46,350
-
-
-
46,500
Issuance of common stock in exchange for the services rendered Jan 2011, $0.28
-
-
21,189
21
-
-
5,979
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Jan 2011, $0.25
-
-
150,000
150
-
-
37,350
-
-
-
37,500
Issuance of common stock as employee compensation Jan 2011, $0.28
-
-
30,588
31
-
-
8,386
-
-
-
8,417
Stock-based compensation - stock options
-
-
-
-
29,265
-
-
-
29,265
Issuance of common stock as employee compensation Feb 2011, $0.23
-
-
36,123
36
-
-
8,381
-
-
-
8,417
Issuance of common stock in exchange for the services rendered Feb 2011, $0.23
-
-
25,647
26
-
-
5,974
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Feb 2011, $0.24
-
-
4,000
4
-
-
956
-
-
-
960
Issuance of common stock in exchange for the services rendered Mar 2011, $0.21
-
-
300,000
300
-
-
62,700
-
-
-
63,000
Issuance of options in exchange for the services rendered Mar 2011, $0.282
-
-
-
-
692,010
-
-
-
692,010
Issuance of options in exchange for the services rendered Mar 2011, $0.64
-
-
-
-
23,959
-
-
-
23,959
Issuance of common stock in exchange for the services rendered Mar 2011, $0.24
-
-
25,479
25
-
-
5,975
-
-
-
6,000
Issuance of common stock as employee compensation Mar 2011, $0.25
-
-
33,285
33
-
-
8,383
-
-
-
8,416
Issuance of common stock for cash pursuant to private placement, Mar 2011, $0.25
-
-
4,056,000
4,056
-
-
174,408
-
-
-
178,464
Issuance of common stock in exchange for the services rendered Apr 2011, $0.23
-
-
26,557
27
-
-
5,973
-
-
-
6,000
Issuance of common stock in exchange for the services rendered Apr 2011, $0.22
-
-
150,000
150
-
-
33,450
-
-
-
33,600
Issuance of common stock as employee compensation Apr 2011, $0.22
-
-
38,130
38
-
-
8,378
-
-
-
8,416
Stock-based compensation - stock options
-
-
-
-
29,265
-
-
-
29,265
Issuance of common stock as employee compensation May 2011, $0.21
-
-
39,618
40
-
-
8,377
-
-
-
8,417
Issuance of common stock in exchange for the services rendered May 2011, $0.23
-
-
155,556
156
-
-
34,845
-
-
-
35,001
Issuance of common stock in exchange for the services rendered May 2011, $0.22
-
-
27,059
27
-
-
5,973
-
-
-
6,000
Issuance of common stock in exchange for the services rendered May 2011, $0.21
-
-
150,000
150
-
-
32,100
-
-
-
32,250
Issuance of common stock in exchange for the services rendered June 2011, $0.15
-
-
150,000
150
-
-
21,750
-
-
-
21,900
Issuance of options in exchange for the services rendered Jun 2011, $0.64
-
-
-
-
21,725
-
-
-
21,725
Issuance of common stock in exchange for the services rendered Jun 2011, $0.18
-
-
33,569
34
-
-
5,966
-
-
-
6,000
Issuance of common stock as employee compensation Jun 2011, $0.17
-
-
50,050
50
-
-
8,367
-
-
-
8,417
Issuance of common stock in satisfaction of accounts payable, Jun 2011, $0.19-0.23
-
-
499,313
499
-
-
102,148
-
-
-
102,647
Preferred Stock, July 2011 (see Note 12)
2,575
-
Issuance of common stock in connection with conversion of $1,288,000 of $2,575,000 Preferred Stock, July 2011
(1,288
)
-
8,586,665
8,587
-
-
(8,587
)
-
-
-
(0
)
Preferred Stock Dividend, July 2011
-
-
-
-
-
(766,417
)
-
(766,417
)
Issuance of common stock in connection with preferred stock make whole payments , July 2011
-
-
2,323,083
2,323
-
-
345,437
-
-
-
347,760
Issuance of common stock in exchange for the services rendered July 2011, $0.14
-
-
41,827
42
-
-
5,958
-
-
-
6,000
Issuance of common stock in exchange for the services rendered July 2011, $0.13
-
-
150,000
150
-
-
19,350
-
-
-
19,500
Issuance of common stock in exchange for the services rendered July 2011, $0.15
-
-
440,000
440
-
-
(440
)
-
-
-
-
Issuance of common stock as employee compensation July 2011, $0.13
-
-
63,336
63
-
-
8,353
-
-
-
8,416
Net Loss
-
-
-
-
-
-
-
(21,675,867
)
-
(21,675,867
)
Other comprehensive income (loss)
-
Currency translation adjustment
-
-
-
-
-
-
-
-
-
85,392
85,392
Total comprehensive income (loss)
(21,675,867
)
85,392
(21,590,475
)
Balance at July 31, 2011
1,287
$
-
308,519,768
$
308,520
-
$
-
$
338,124,525
$
-
$
(347,744,756
)
$
869,575
$
(8,442,136
)
The Notes to Consolidated Financial
Statements are an integral part of these statements.
F-
20
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS
OF CASH FLOWS
Cumulative From
For the Twelve Months
November 2, 1995
Ended July 31,
(Date of Inception)
2011
2010
2009
to July 31, 2011
Cash Flows From Operating Activities:
Net loss
$
(21,675,867
)
$
(25,279,940
)
$
(45,812,228
)
$
(344,683,282
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
742,961
780,250
805,806
9,295,882
Minority interest share of loss
—
—
—
(3,038,185
)
Reduction of notes receivable - common stock in exchange for services rendered
—
—
—
423,882
Write-off of uncollectible notes receivable - common stock
—
—
—
391,103
Write-off of deferred offering costs
—
—
—
3,406,196
Write-off of abandoned patents
—
—
—
913,196
Loss on disposal of property and equipment
35,878
—
—
36,789
Loss on extinguishment of debt
—
—
—
14,134,069
Common stock issued as employee compensation
100,999
101,002
198,128
3,881,394
Amortization of options and option modifications as stock compensation
936,465
1,765,381
34,418
2,808,842
Common stock issued for services rendered
1,990,005
1,755,200
1,536,431
13,807,834
Amortization of prepaid services in conjunction with common stock issuance
—
—
—
138,375
Non-cash compensation expense
—
—
—
45,390
Stock options and warrants issued for services rendered
—
591,000
11,000
7,956,723
Issuance of warrants as additional exercise right inducement
—
—
—
21,437,909
Preferred stock issued for services rendered
—
—
—
100
Treasury stock redeemed for non-performance of services
—
—
—
(138,000
)
Amortization of deferred debt issuance costs and loan origination fees
—
—
717,694
2,405,629
Amortization of discount on convertible debentures
—
—
15,931,481
38,345,592
Common stock issued for interest on convertible debentures & preferred stock
—
—
473,055
757,514
Interest on short-term advance
—
—
—
22,190
Founders' shares transferred for services rendered
—
—
—
353,506
Fees in connection with refinancing of debt
—
—
—
113,274
Warrant repricing costs
—
—
3,198,604
3,198,604
Change in fair value of derivative warrant liability
(2,220,916
)
(4,125,590
)
—
(365,463
)
(1)
Changes in operating assets and liabilities (excluding the effects of acquisition):
Accounts receivable
62,200
(12,482
)
14,146
(23,517
)
Miscellaneous receivables
—
—
—
43,812
Inventory
1,197,768
(618,401
)
147,591
(736,483
)
Other current assets
116,171
601,115
(379,487
)
(203,894
)
Accounts payable and accrued expenses
1,811,120
1,878,296
462,520
16,242,556
Deferred revenue
(28,152
)
252,042
13,325
362,727
Other, net
—
—
—
110,317
Net Cash Used in Operating Activities
(16,931,368
)
(22,312,127
)
(22,647,516
)
(208,555,419
)
Cash Flows From Investing Activities:
Purchase of property and equipment
(52,383
)
(159,708
)
(1,385
)
(4,807,023
)
Costs incurred for patents
(234,984
)
(228,777
)
(152,148
)
(2,666,271
)
Change in restricted cash
—
—
—
512,539
Proceeds from maturity of short term investments
—
—
8,852,214
195,242,918
Purchases of short-term investments
—
—
—
(195,242,918
)
Cash received in conjunction with merger
—
—
—
82,232
Advances to Antigen Express, Inc.
—
—
—
(32,000
)
Increase in officers' loans receivable
—
—
—
(1,126,157
)
Change in deposits
—
—
—
(652,071
)
Change in notes receivable - common stock
—
—
—
(91,103
)
Change in due from related parties
—
—
—
(2,222,390
)
Other, net
—
—
—
89,683
Net Cash (Used in) Provided By Investing Activities
(287,367
)
(388,485
)
8,698,681
(10,912,561
)
Cash Flows From Financing Activities:
Proceeds from short-term advance
—
—
—
325,179
Repayment of short-term advance
—
—
—
(347,369
)
Proceeds from issuance of long-term debt
—
—
—
2,005,609
Repayment of long-term debt
(116,632
)
(100,030
)
(82,682
)
(2,241,188
)
Repayment of obligations under capital lease
(7,818
)
(39,950
)
(35,234
)
(83,002
)
Change in due to related parties
—
—
—
154,541
Proceeds from exercise of warrants
—
1,574,062
109,170
45,698,281
Proceeds from exercise of stock options
577
—
56,000
5,002,493
Proceeds from minority interest investment
—
—
—
3,038,185
Proceeds from issuance of preferred stock
2,315,000
—
—
14,330,000
Redemption of SVR preferred stock
—
—
—
(100
)
Proceeds from issuance of convertible debentures, net
—
—
—
40,704,930
Payment of costs associated with convertible debentures
—
—
—
(722,750
)
Repayments of convertible debentures
—
—
(4,506,667
)
(5,142,424
)
Purchase of treasury stock
—
—
—
(483,869
)
Proceeds from issuance of common stock, net
3,939,000
20,900,289
15,453,234
120,576,242
Purchase and retirement of common stock
—
—
—
(497,522
)
Net Cash Provided by Financing Activities
6,130,127
22,334,371
10,993,821
222,317,236
Effect of Exchange Rates on Cash
6,535
50,063
(85,448
)
(50,459
)
Net (Decrease) Increase in Cash and Cash Equivalents
(11,082,073
)
(316,178
)
(3,040,462
)
2,798,797
Cash and Cash Equivalents, Beginning of Period
13,880,870
14,197,048
17,237,510
—
Cash and Cash Equivalents, End of Period
$
2,798,797
$
13,880,870
$
14,197,048
$
2,798,797
(1) - includes $5,981,403
as adjustment related to the adoption of FASB ASC Topic 815 in "Cumulative from November 2, 1995 (Date of Inception) to July 31,
2011" column. See Note 13 - Derivative Warrant Liability.
The Notes to Consolidated
Financial Statements are an integral part of these statements.
F-
21
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Note 1 - Organization
and Business
:
Generex Biotechnology
Corporation (the Company) and its wholly-owned subsidiary Generex Pharmaceuticals, Inc. are engaged in the research and development
of drug delivery systems and technology.  Since its inception, the Company has devoted its efforts and resources to the
development of a platform technology for the oral administration of large molecule drugs, including proteins, peptides, monoclonal
antibodies, hormones and vaccines, which historically have been administered by injection, either subcutaneously or intravenously.  Oral-lyn
TM
the first product based on this platform technology, is in the various stages of regulatory approval in different jurisdictions
around the world.
The Company's
wholly-owned subsidiary, Antigen Express, Inc. (Antigen), is engaged in research and development of technologies and immunomedicines
for the treatment of malignant, infectious, autoimmune and allergic diseases.  The Company's immunomedicine products
work by stimulating the immune system to either attack offending agents (i.e., cancer cells, bacteria, and viruses) or to stop
attacking benign elements (i.e., self proteins and allergens). The immunomedicine products are based on two platform technologies
that were discovered by an executive officer of Antigen, the Ii-Key hybrid peptides and Ii-Suppression. These technologies are
expected to greatly boost immune cell responses which diagnose and treat the ailments and conditions.
The Company is a development
stage company, which has a limited history of operations and limited revenue to date. This revenue has been comprised mainly of
the sale of our confectionary products, although the Company has recognized $600,000 relating to upfront license fees for the signing
of license and distribution agreements for Generex Oral-lyn™.  Additionally, the Company has several product candidates
that are in various research or early stages of pre-clinical and clinical development.  There can be no assurance that
the Company will be successful in obtaining regulatory clearance for the sale of existing or any future products or that any of
the Company's products will be commercially viable.
Going Concern
The accompanying financial
statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities
and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception
and had an accumulated deficit at July 31, 2011 of approximately $350 million. The Company has funded its activities to date almost
exclusively from debt and equity financings.
The Company will continue
to require substantial funds to continue research and development, including preclinical studies and clinical trials of its product
candidates, and to commence sales and marketing efforts, if the FDA or other regulatory approvals are obtained.  Management's
plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common
stock, preferred stock offerings, issuances of debt and convertible debt instruments.  Management is also actively pursuing
industry collaboration activities including product licensing and specific project financing.
While the Company believes
that it will be successful in obtaining the necessary financing to fund its operations, meet revenue projections and manage costs,
there are no assurances that such additional funding will be achieved and that it will succeed in its future operations. The financial
statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts
of liabilities that might be necessary should the Company be unable to continue in existence.
Note 2 - Summary of Significant
Accounting Policies:
Principles of Consolidation
The consolidated financial
statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained.  For
those consolidated subsidiaries where the Company ownership is less than 100 percent, the outside stockholders' interests
are shown as minority interests.  Effective December 17, 2004, the Company's ownership in all consolidated subsidiaries
is 100 percent.  All significant intercompany transactions and balances have been eliminated.
Development Stage
Company
The accompanying consolidated
financial statements have been prepared in accordance with the provisions of FASB ASC Topic 915, "Development Stage Entities."
Cash and Cash Equivalents
The Company considers
all
highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Accounts Receivable
Accounts receivable
are customer obligations due under normal trade terms. The Company sells its product to various distributors and retailers. The
Company performs ongoing credit evaluations of customers' financial condition and does not require collateral.
F-
22
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Management reviews
accounts receivable on a monthly basis to determine collectability. Balances that are determined to be uncollectible are written
off to the allowance for doubtful accounts. The allowance for doubtful accounts contains a general accrual for estimated bad debts
and had a balance of zero at July 31, 2011 and 2010, however, actual write-offs may exceed the allowance.
Inventory
Inventory consists
of raw materials, product components and finished goods.  Inventory is stated at the lower of cost or market with cost
determined using the first-in first-out ("FIFO") method. In evaluating whether inventory is stated at the lower of
cost or market, management considers such factors as the amount of inventory on hand and in the distribution channel, estimated
time required to sell such inventory, remaining shelf life and current and expected market conditions, including levels of competition.
As appropriate, a provision is recorded to reduce inventory to its net realizable value.
Property and Equipment
Property and equipment
are recorded at cost less accumulated depreciation.  Depreciation is provided on the straight-line method over the estimated
useful lives of the assets, which range from three to thirty years.  Gains and losses on depreciable assets retired or
sold are recognized in the statement of operations in the year of disposal.  Repairs and maintenance expenditures are
expensed as incurred.
Assets Held for
Investment
Property held for investment
is recorded at cost less accumulated depreciation.  Depreciation is provided on the straight-line method over the estimated
useful lives of the assets of thirty years.  Gains and losses on depreciable assets retired or sold are recognized in
the statement of operations in the year of disposal.  Repairs and maintenance expenditures are expensed as incurred.
Patents
Capitalized patent
costs represent legal costs incurred to establish patents and a portion of the acquisition price paid attributed to patents upon
the acquisition of Antigen in August 2003.  When patents reach a mature stage, any associated legal costs are comprised mostly
of maintenance fees and costs of national applications and are expensed as incurred.  Capitalized patent costs are amortized
on a straight line basis over the remaining life of the patent.  As patents are abandoned, the net book value of the patent
is written off.
Impairment or Disposal
of Long-Lived Assets
The Company assesses
the impairment of long-lived assets under FASB ASC Topic 360 whenever events or changes in circumstances indicate that the carrying
value may not be recoverable.  For long-lived assets to be held and used, the Company recognizes an impairment loss only
if its carrying amount is not recoverable and exceeds its fair value.  The carrying amount of the long-lived asset is
not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the
asset.  There were no disposals relating to long-lived assets in the fiscal years ended July 31, 2011, 2010 and 2009
and no impairments relating to long-lived assets in the fiscal years ended July 31, 2010 and 2009.  In the fiscal year
ended July 31, 2011, the Company recorded a write down of $35,878 on certain fixed assets.
Derivative Warrant
Liability
The Company's
derivative warrant instruments are measured at fair value using an accepted valuation model which takes into account, as of the
valuation date, factors including the current exercise price, the expected life of the warrant, the current price of the underlying
stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the term of the warrant.  The
Company recognizes all of its warrants with price protection in its consolidated balance sheet as liabilities depending on the
rights or obligations under the contracts.  The liability is revalued at each reporting period and changes in fair value
are recognized currently in the consolidated statements of operations under the caption "Change in fair value of derivative
warrant liability." See
Note 13 – Derivative Liabilities
.
Revenue Recognition
Revenues from the sale
of commercial products are recognized at the time title of goods passes to the buyer and the buyer assumes the risks and rewards
of ownership. Certain product sales are made to retailers under agreements allowing for a right to return unsold products. In accordance
with FASB ASC Topic 605, recognition of revenue on all sales to these retailers is deferred until the right of return expires,
the product is sold to a third party or a provision for returns can be reasonably estimated based on historical experience. The
cost of inventory under these sales is considered to be a consigned inventory until the revenue is recognized.  Sales
are reported net of estimated returns and allowances, discounts, mail-in rebate redemptions and credit card chargebacks. If actual
sales returns, allowances, discounts, mail-in rebate redemptions or credit card chargebacks are greater than estimated by management,
additional expense may be incurred.
F-
23
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Grant revenue is recognized
as the Company provides the services stipulated in the underlying grant based on the time and expenditures incurred.  Amounts
received in advance of services provided are recorded as deferred revenue and amortized as revenue when the services are provided.  The
Company received grant revenue of $488,959 in the fiscal year ended July 31, 2011 and recognized the full amount of the grant in
fiscal 2011, as the Company had already incurred all of the qualifying expenses and the amount was fully received.  See
Note 16 - Qualifying Therapeutic Discovery Project Program.
Included in miscellaneous
income are fees received under licensing agreements.  Nonrefundable fees received under licensing agreements are recognized
as revenue when received if the Company has no continuing obligations to the other party.
Rental income is recognized
as revenue in the period in which the related rental space is occupied.
Research and Development
Costs
Expenditures for research
and development are expensed as incurred and include, among other costs, those related to the production of experimental drugs,
including payroll costs, and amounts incurred for conducting clinical trials.  Amounts expected to be received from governments
under research and development tax credit arrangements are offset against current research and development expense.
Income Taxes
Income taxes are accounted
for under the asset and liability method prescribed by FASB ASC Topic 740.  These standards require a company to determine
whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the
position.  If the more likely than not threshold is met, a company must measure the tax position to determine the amount
to recognize in the financial statements. Deferred income taxes are recorded for temporary differences between financial statement
carrying amounts and the tax basis of assets and liabilities.  Deferred tax assets and liabilities reflect the tax rates
expected to be in effect for the years in which the differences are expected to reverse.  A valuation allowance is provided
if it is more likely than not that some or all of the deferred tax asset will not be realized.  At
July 31,
2011 and 2010, the Company had a full valuation allowance equal to the amount of the net deferred tax asset.
The Company adopted
the FASB guidance concerning accounting for uncertainty in income taxes, which clarifies the accounting and disclosure for uncertainty
in tax positions as of August 1, 2007. The guidance requires that the Company determine whether it is more likely than not that
a tax position will not be sustained upon examination by the appropriate taxing authority. If a tax position does not meet the
more likely than not recognition criterion, the guidance requires that the tax position be measured at the largest amount of benefit
greater than 50 percent not likely of being sustained upon ultimate settlement.  Based on the Company's evaluation,
management has concluded that there are no significant uncertain tax positions requiring recognition in the consolidated financial
statements.
Stock-Based Compensation
The Company follows
FASB ASC Topic 718 which requires that new, modified and unvested share-based payment transactions with employees, such as grants
of stock options and restricted stock, be recognized in the financial statements based on their fair value at the grant date and
recognized as compensation expense over their vesting periods. The Company estimates the fair value of stock options as of the
date of grant using the Black-Scholes option pricing model and restricted stock based on the quoted market price. The Company also
follows the guidance in FASB ASC Topic 505 for equity based payments to non-employees for equity instruments issued to consultants
and other non-employees.
Net Loss per Common
Share
Basic earnings per
share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding
during the period.  Diluted earnings per share gives effect to all dilutive potential common shares outstanding during
the period.  The computation of diluted earnings per share does not assume conversion, exercise or contingent exercise
of securities that would have an anti-dilutive effect on earnings.  Refer to Note 17 for methodology for determining
net loss per share.
Comprehensive Income/(Loss)
Other comprehensive
income/(loss), which includes only foreign currency translation adjustments, is shown in the Statement of Changes in Stockholders'
Equity.
Concentration of
Credit Risk
The Company maintains
cash balances, at times, with financial institutions in excess of amounts insured by the Canada Deposit Insurance Corporation and
the U.S. Federal Deposit Insurance Corporation.  Management monitors the soundness of these institutions and has not
experienced any collection losses with these financial institutions.
F-
24
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
During the fiscal year
ended July 31, 2011, 49% of total net revenues were generated from three customers that individually represented over 10% of total
revenue each (Customer A – 17%, Customer B – 16%, Customer C – 15%).  During the fiscal year ended
July 31, 2010, 41% of total net revenues were generated from two different customers from above that individually represented over
10% of total revenue each (Customer D – 27%, Customer E – 14%).  During the fiscal year ended July 31, 2009,
78% of total net revenues were generated from two different customers from above, each individually representing over 10% of total
revenue (Customer F – 44%, Customer G – 34%).  None of these seven customers had balances owing to the Company
at each of the respective fiscal year end dates.
Foreign Currency
Translation
Foreign denominated
assets and liabilities of the Company are translated into U.S. dollars at the prevailing exchange rates in effect at the end of
the reporting period.  Income statement accounts are translated at a weighted average of exchange rates which were in
effect during the period.  Translation adjustments that arise from translating the foreign subsidiary's financial
statements from local currency to U.S. currency are recorded in the other comprehensive loss component of stockholders' equity.
Fair Value of Financial
Instruments
Fair value is defined
under FASB ASC Topic 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price)
in the principal or the most advantageous market for an asset or liability in an orderly transaction between participants on the
measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use
of unobservable inputs. The standard describes a fair value hierarchy based on the levels of inputs, of which the first two are
considered observable and the last unobservable, that may be used to measure fair value.  The levels are as follows:
·
Level 1 - Quoted prices in active markets for identical assets or liabilities
·
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities
·
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities
The Company's
financial instruments consist of cash and cash equivalents, accounts receivable, long-term debt, accounts payable and accrued expenses,
as well as derivative warrant liabilities and derivative additional investment rights. All of these items, except for the derivative
warrant liabilities and derivative additional investment rights, were determined to be Level 1 fair value measurements.  The
carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and accrued expenses approximate their
respective fair values because of the short maturities of these instruments. Long-term debt balances were determined to approximate
their fair value as we believe the borrowing rates reflect the prevailing market rates available for similar debt instruments.
The Company has determined
its derivative warrant liability and its derivative additional investment rights liability to be Level 2 fair value measurements
and has used the binomial lattice model valuation method to calculate the fair value of the derivative warrant liability as of
July 31, 2011 and 2010 and the derivative additional investment rights liability at July 31, 2011.  See
Note 13 –
Derivative Liabilities
.
Use of Estimates
The preparation of
financial statements in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting
periods.
The Company evaluates
its estimates, including those related to bad debts, inventories, long lived assets (including patents) impairment valuations,
debt obligations, derivatives, convertible preferred shares, long-term contracts, and contingencies and litigation, on an ongoing
basis. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable
under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or
conditions.
Critical accounting
estimates are reviewed and discussed with the audit committee of the board of directors.  The Company considers an accounting
estimate to be critical if it requires assumptions to be made that were uncertain at the time the estimate was made and changes
in the estimate or different estimates that could have been selected could have a material impact on our results of operations
or financial condition.
F-
25
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Effects of Recent
Accounting Pronouncements
Recently Adopted
Accounting Pronouncements
In October 2009,
the Financial Accounting Standards Board ("FASB") issued guidance on multiple deliverable revenue arrangements which
eliminates the residual method of allocation and requires the relative selling price method when allocating deliverables of a multiple-deliverable
revenue arrangement. The determination of the selling price for each deliverable requires the use of a hierarchy designed to maximize
the use of available objective evidence including, vendor specific objective evidence, third party evidence of selling price, or
estimated selling price.  This guidance is effective prospectively for revenue arrangements entered into or materially
modified in fiscal years beginning on or after June 15, 2010, and must be adopted in the same period using the same transition
method. If adoption is elected in a period other than the beginning of a fiscal year, the amendments in these standards must be
applied retrospectively to the beginning of the fiscal year. This guidance was effective for the Company's current fiscal
year beginning August 1, 2010.  The adoption of this guidance did not have a significant impact on the Company's
consolidated financial statements.
Recently Issued
Accounting Pronouncements
In January 2010,
the FASB issued additional guidance on fair value measurements and disclosures which requires reporting entities to provide information
about movements of assets among Levels 1 and 2 of the three-tier fair value hierarchy established by the existing guidance.  The
guidance is effective for any fiscal year that begins after December 15, 2010, and it should be used for quarterly and annual filings.  The
Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.
In May 2011, the FASB
issued further guidance on fair value measurements and disclosures which requires the categorization by level for items that are
only required to be disclosed at fair value and information about transfers between Level 1 and Level 2. In addition, the update
provides guidance on measuring the fair value of financial instruments managed within a portfolio and the application of premiums
and discounts on fair value measurements. The guidance requires additional disclosure for Level 3 measurements regarding the sensitivity
of fair value to changes in unobservable inputs and any interrelationships between those inputs. The guidance is effective for
interim and annual periods beginning after December 15, 2011. The Company is currently evaluating the impact of this new accounting
guidance on its consolidated financial statements.
In June 2011, the FASB
issued guidance regarding the presentation of Comprehensive Income within financial statements.  The guidance is effective
for interim and annual periods beginning after December 15, 2011. The Company is currently evaluating the impact of this new accounting
guidance on its consolidated financial statements.
Note 3 - Property and
Equipment
:
The costs and accumulated
depreciation of property and equipment are summarized as follows:
July 31,
2011
2010
Land
$
237,969
$
220,409
Buildings and Improvements
1,508,288
1,396,990
Furniture and Fixtures
149,540
159,739
Office Equipment
201,314
210,379
Lab Equipment
4,614,656
4,438,268
Total Property and Equipment
6,711,767
6,425,785
Less:  Accumulated Depreciation
5,439,900
5,084,377
Property and Equipment, Net
$
1,271,867
$
1,341,408
Depreciation expense
related to property and equipment amounted to $172,250, $238,253 and $298,407 for the years ended July 31, 2011, 2010 and 2009,
respectively.
Note 4 - Assets Held for
Investment, Net
:
The costs and accumulated
depreciation of assets held for investment are summarized as follows:
July 31,
2011
2010
Assets Held For Investment
$
5,100,519
$
4,724,147
Less:  Accumulated Depreciation
1,465,590
1,221,037
Assets Held for Investment, Net
$
3,634,929
$
3,503,110
F-
26
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
These assets are held
as collateral for long term debt (see Note 11).  Depreciation expense on assets held for investment amounted to $141,686,
$134,251 and $117,515 for the years ended July 31, 2011, 2010 and 2009, respectively.
The Company's
intent is to hold this property for investment purposes and collect rental income.  Included in income from rental operations,
net is $582,974, $407,809 and $497,858 of rental income and $233,516, $201,234 and $177,311 of rental expenses, including the depreciation
expense amounts above relating to assets held for investment, for the years ended July 31, 2011, 2010 and 2009, respectively.
On August 26, 2011,
the Company sold two of its commercial properties held as investments for gross proceeds of $1,809,926.  These properties
had a net book value of $1,073,837 and the resulting gain on sale of these investment properties will be recognized in the first
quarter of fiscal 2012.
Note 5 - Patents
:
The costs and accumulated
amortization of patents are summarized as follows:
July 31,
2011
2010
Patents
$
6,487,389
$
6,221,777
Less:  Accumulated Amortization
3,137,801
2,688,089
Patents, Net
$
3,349,588
$
3,533,688
Weighted Average Life
11.2 years
11.7 years
Amortization expense
amounted to $430,650, $407,746, $390,773 for the years ended July 31, 2011, 2010 and 2009, respectively. Amortization expense is
expected to be approximately $414,000 per year for the years ended July 31, 2012 through 2016.  During the years ended
July 31, 2011, 2010 and 2009, the Company did not write off any patents.
Note 6 - Income Taxes
:
The Company has incurred
losses since inception, which have generated net operating loss ("NOL") carryforwards.  The NOL carryforwards
arise from both United States and Canadian sources.  Pretax losses arising from domestic operations (United States) were
$15,060,207, $18,127,536 and $40,064,006 for the years ended July 31, 2011, 2010 and 2009, respectively.  Pretax losses
arising from foreign operations (Canada and Bermuda) were $6,615,660, $7,152,404 and $5,748,222 for the years ended July 31, 2011,
2010 and 2009, respectively.  As of July 31, 2011, the Company has NOL carryforwards in Generex Biotechnology Corporation
of approximately $191,475,000, which expire in 2018 through 2031, in Generex Pharmaceuticals Inc. of approximately $45,391,000,
which expire in 2012 through 2031, and in Antigen Express, Inc. of approximately $25,226,000, which expire in 2016 through 2031.  These
loss carryforwards are subject to limitation due to the acquisition of Antigen and may be limited in future years due to certain
structural ownership changes which have occurred over the last several years, related to the Company's equity and convertible
debenture financing transactions.
For the years ended
July 31, 2011, 2010 and 2009, the Company's effective tax rate differs from the federal statutory rate principally due to
net operating losses and other temporary differences for which no benefit was recorded.  Additionally for the year ended
July 31, 2011, the Company has taken into account a decrease in the Canadian effective tax rate from 36.12% to 25% as of January
2012, which will reduce the future value (prior to valuation allowances) of the NOL carryforwards of the Canadian subsidiary.
Deferred income taxes
consist of the following:
July 31,
2011
2010
Net operating loss carryforwards
$
85,026,388
$
84,804,372
Other timing difference
5,680
929,056
Total Deferred Tax Assets
85,032,068
85,733,428
Valuation Allowance
(84,336,137
)
(84,966,128
)
Deferred Tax Liabilities
Intangible assets
(623,708
)
(719,846
)
Other timing difference
(72,223
)
(47,454
)
Total Deferred Tax Liabilities
(695,931
)
(767,300
)
Net Deferred Income Taxes
$
—
$
—
F-
27
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
A reconciliation of
the United States Federal Statutory rate to the Company's effective tax rate for the years ended July 31, 2011, 2010 and
2009 is as follows:
2011
2010
2009
Federal statutory rate
(34.0
)%
(34.0
)%
(34.0
)%
Increase (decrease) in income taxes resulting from:
Imputed interest income on intercompany receivables from foreign subsidiaries
3.0
2.0
1.0
Nondeductible items
(4.0
)
(6.0
)
5.0
Change in Canadian NOL carryforwards due to future tax rate changes
20.0
—
—
Other timing differences
18.0
3.0
10.0
Change in valuation allowance
(3.0
)
35.0
18.0
Effective tax rate
—
%
—
%
—
%
As of July 31, 2011,
the Company had no unrecognized tax benefits, and no adjustment to its financial position, results of operations or cash flows
was required. The Company does not expect that unrecognized tax benefits will increase within the next twelve months. The Company
records interest and penalties related to tax matters within other expense on the accompanying consolidated statement of operations.
These amounts are not material to the consolidated financial statements for the periods presented.  Generally, tax years
2008 to 2011 remain open to examination by the Internal Revenue Agency or other tax jurisdictions to which the Company is subject.
The Company's Canadian tax returns are subject to examination by federal and provincial taxing authorities in Canada. Generally,
tax years 2003 to 2011 remain open to examination by the Canadian Customs and Revenue Agency or other tax jurisdictions to which
the Company is subject.
Note 7 - Inventory
:
Inventory consists
of the following:
July 31,
2011
2010
Raw materials
$
502,195
$
962,035
Finished goods
215,247
949,848
Total
$
717,442
$
1,911,883
At July 31, 2011 and 2010, approximately 70% and 60%, respectively, of the inventory related to the Company's Oral-lyn™ product, while the remainder in each year related to the Company's over-the-counter confectionary products.
Note 8 - Accounts Payable
and Accrued Expenses
:
Accounts payable and
accrued expenses consist of the following:
July 31,
2011
2010
Accounts Payable & Accruals – General and Administrative
$
4,805,091
$
3,480,340
Accounts Payable & Accruals – Research and Development
2,151,333
2,621,514
Accounts Payable & Accruals – Selling and Marketing
434,265
415,166
Accrued Make Whole Payments on Convertible Preferred Stock (see Note 12)
347,490
—
Executive Compensation
—
37,694
Total
$
7,738,179
$
6,554,714
Note 9 - Commitments and
Contingent Liabilities
:
Leases
The Company has entered
into various operating lease agreements for the use of operating space, vehicles and office equipment.
F-
28
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Aggregate minimum annual
lease commitments of the Company under non-cancelable operating leases as of July 31, 2011 are as follows:
Year
Amount
2012
$
125,339
2013
16,621
2014
3,849
2015 and thereafter
—
Total Minimum Lease Payments
$
145,809
Lease expense amounted
to approximately $210,000, $200,000 and $102,000 for the years ended July 31, 2011, 2010 and 2009, respectively.
The preceding data
reflects existing leases and does not include replacements upon their expiration.  In the normal course of business,
operating leases are generally renewed or replaced by other leases.
Rental Operations
The Company sub-leases
a portion of the floor that it owns in an office building located in Toronto, Canada.  The following represents the approximate
minimum amount of sublease income under current lease agreements to be received in years ending after July 31, 2011:
Year
Amount
2012
$
51,071
2013
28,601
2014
16,201
2015
11,144
2016 and thereafter
7,533
Total
$
114,550
Assets Held for
Investment
The Company leases
two commercial buildings located in Brampton and Mississauga, Canada, and units of property that it owns located in Toronto, Canada.  On
August 26, 2011, the Company sold the two commercial buildings located in Brampton and Mississauga.  The following represents
the approximate minimum amount in lease income under current lease agreements to be received in years ending after July 31, 2011
after adjustment for the August 2011 building sales:
Year
Amount
2012
$
301,060
2013
236,566
2014
211,026
2015
180,562
2016
153,771
Thereafter
650,562
Total
$
1,733,547
Supply Agreements
On December 7, 2009,
the Company entered into a long-term agreement with sanofi-aventis Deutschland GmbH ("sanofi-aventis").  Under
this agreement, sanofi-aventis will manufacture and supply recombinant human insulin to the Company in the territories specified
in the agreement.  Through this agreement, the Company will procure recombinant human insulin crystals for use in the
production of Generex Oral-lyn™.  The terms of the supply agreement require the Company to make certain minimum
purchases of insulin from sanofi-aventis through the period ending December 31, 2011. To date, the Company has not met the
minimum purchase commitments under this agreement.  After December 31, 2011, sanofi-aventis may terminate the agreement
due to the Company's failure to meet such purchase commitments.  Upon termination, the Company would be obligated
to pay sanofi-aventis for all materials and components that it has acquired or ordered to manufacture insulin based on the Company's
forecasts or minimum purchase commitments, all related work-in-progress (at cost) and all finished insulin in inventory.
The Company has a supply
agreement with Presspart Manufacturing Limited ("Presspart"), whereby the Company will purchase its entire requirements
for products to use in the administration of insulin through the buccal mucosa and shall not purchase the products or any metal
containers competitive to the products from any other person in exchange for an exclusive non-transferable royalty-free irrevocable
license to use the products.  The contract shall continue for a minimum period of four contract years from the end of
the first contract year in which the total quantity of products purchased by the Company from Presspart exceeds 10,000,000 units,
and thereafter, shall continue until terminated by either party by giving twelve months written notice.  As of July 31,
2011, the Company has not yet completed a contract year in which the total quantity has exceeded 10,000,000 units and as such the
expiration date of this contract cannot be determined.
F-
29
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Pending Litigation
In February 2001, a
former business associate of the former Vice President of Research and Development ("VP") of the Company and an entity
known as Centrum Technologies Inc. ("CTI") commenced an action in the Ontario Superior Court of Justice against the
Company and the VP seeking, among other things, damages for alleged breaches of contract and tortious acts related to a business
relationship between this former associate and the VP that ceased in July 1996. The plaintiffs' statement of claim also seeks
to enjoin the use, if any, by the Company of three patents allegedly owned by CTI. The three patents are entitled
Liquid Formulations
for Proteinic Pharmaceuticals
,
Vaccine Delivery System for Immunization, Using Biodegradable Polymer Microspheres
, and
Controlled Releases of Drugs or Hormones in Biodegradable Polymer Microspheres
. It is the Company's position that
the buccal drug delivery technologies which are the subject matter of the Company's research, development, and commercialization
efforts, including Generex Oral-lyn™ and the RapidMist™ Diabetes Management System, do not make use of, are not derivative
of, do not infringe upon, and are entirely different from the intellectual property identified in the plaintiffs' statement
of claim. On July 20, 2001, the Company filed a preliminary motion to dismiss the action of CTI as a nonexistent entity or, alternatively,
to stay such action on the grounds of want of authority of such entity to commence the action. The plaintiffs brought a cross motion
to amend the statement of claim to substitute Centrum Biotechnologies, Inc. ("CBI") for CTI. CBI is a corporation of
which 50 percent of the shares are owned by the former business associate and the remaining 50 percent are owned by the Company.
Consequently, the shareholders of CBI are in a deadlock. The court granted the Company's motion to dismiss the action of
CTI and denied the plaintiffs' cross motion without prejudice to the former business associate to seek leave to bring a derivative
action in the name of or on behalf of CBI. The former business associate subsequently filed an application with the Ontario Superior
Court of Justice for an order granting him leave to file an action in the name of and on behalf of CBI against the VP and the Company.
The Company opposed the application. In September 2003, the Ontario Superior Court of Justice granted the request and issued an
order giving the former business associate leave to file an action in the name of and on behalf of CBI against the VP and the Company.
A statement of claim was served in July 2004. The Company is not able to predict the ultimate outcome of this legal proceeding
at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding.
On April 6, 2010, the
Company commenced legal proceedings against TheStreet.com, Inc. and Adam Feuerstein in the Supreme Court of the State of New York
(New York, NY) seeking $250,000,000 in damages for business defamation, product disparagement, and injurious falsehood.  The
claims arise out of articles authored by Mr. Feuerstein and published on TheStreet.com website on March 19 and March 26, 2010.  In
the complaint, the Company contends that the articles disseminate numerous defamatory statements about the Company, its management,
and its flagship product, Generex Oral-lyn™, and that the articles put forward several ostensible statements of fact that
are, in truth, misleading or outright misstatements made with malicious intent or with a reckless disregard for the truth.  Defendants
have filed an answer denying the claims in the complaint and have served discovery requests on the Company.  The Company
is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential
damages recovered, if any, from this legal proceeding.
In May 2011, Rose C.
Perri, the Company's former Chief Operating Officer and Chief Financial Officer, commenced two proceedings against the Company.  On
May 11, 2011, Ms. Perri filed a notice of application in the Ontario Superior Court of Justice, Commercial List, against the Company,
two of its affiliates (1097346 Ontario, Inc. and Generex Pharmaceuticals Inc.), three of the Company's independent directors
(John P. Barratt, Nola Masterson and Brian T. McGee), the President and Chief Executive Officer (Mark A. Fletcher), the Chief Operating
Officer (David Brusegard) and the Acting Chief Financial Officer (Stephen Fellows).  In the notice of application, Ms.
Perri seeks, among other things, a declaration that respondents' actions, including the termination of Ms. Perri's
employment with the Company, have prejudiced her interest as a shareholder, officer and director of the Company, an order for the
production of certain financial records, and the appointment of an interim receiver for our two affiliates.  On July
15, 2011, the court ordered that this matter be heard together with the action brought by Ms. Perri for wrongful termination as
described in the next paragraph.   The Company intends to vigorously defend this action and is not able to predict
the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any,
from this legal proceeding.
On May 20, 2011, Ms.
Perri filed a statement of claim (subsequently amended) in the Ontario Superior Court of Justice, naming as defendants the Company,
Mr. Barratt, Ms. Masterson, Mr. McGee, and Mr. Fletcher.  In this action, Ms. Perri has alleged that defendants engaged
in discrimination, harassment, bad faith and infliction of mental distress in connection with the termination of her employment
with the Company.  Ms. Perri is seeking damages in this action in excess of $7,000,000 for, among other things, breach
of contract, breach of fiduciary duty, violations of the Ontario Human Rights Code and aggravated and punitive damages.   On
September 20, 2011, the defendants filed a statement of defense and counterclaim, also naming Time Release Corp., Khazak Group
Consulting Corp., and David Khazak, C.A. as defendants by counterclaim, and seeking damages of approximately $2.3 million in funds
that the defendants allege Ms. Perri wrongly caused the Company to pay to third parties in varying amounts over several years and
an accounting of certain third-party payments, plus interests and costs.  The factual basis for the counterclaim involves
payments made by the Company to third parties believed to be related to Ms. Perri.  The Company intends to defend this
action and pursue its counterclaim vigorously and is not able to predict the ultimate outcome of this legal proceeding at the present
time or to estimate an amount or range of potential loss, if any, from this legal proceeding.
F-
30
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
On June 1, 2011, Golden
Bull Estates Ltd. filed a claim (subsequently amended) in the Ontario Superior Court of Justice, naming the Company, 1097346 Ontario,
Inc. and Generex Pharmaceuticals Inc. as defendants.  The plaintiff, Golden Bull Estates, is controlled by Ms. Perri.  The
plaintiff alleges damages in the amount of $550,000 for breach of contract, $50,000 for punitive damages, plus interest and costs.  The
plaintiff's claims relate to an alleged contract between the plaintiff and the Company for property management services for
certain Ontario properties owned by the Company.  The Company terminated the plaintiff's property management services
in April 2011.  Pleadings are closed, and the Company has served a motion for summary judgment.  No date for
a hearing on this matter has been scheduled.  The Company is not able to predict the ultimate outcome of this legal proceeding
at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding
In August 2011, the
estate of Antonio Perri, the late father of Ms. Perri, commenced an action against Generex Pharmaceuticals, Inc., the law firm
of Brans, Lehun, Baldwin LLP and William Lehun in the Ontario Superior Court of Justice claiming that the estate is entitled to
the proceeds of sale (approximately $1,730,000) received by the Company on its sale of two properties to Golden Bull Estates, a
company controlled by Ms. Perri.  The suit alleges that no consideration was received when the Company purchased the
two properties from Antonio Perri in 1998.  The Company intends to respond to this statement of claim and to defend this
action vigorously. The Company is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate
an amount or range of potential loss, if any, from this legal proceeding.
The Company is involved
in certain other legal proceedings in addition to those specifically described herein. Subject to the uncertainty inherent in all
litigation, the Company does not believe at the present time that the resolution of any of these legal proceedings is likely to
have a material adverse effect on the Company's financial position, operations or cash flows.
With respect to all
litigation, as additional information concerning the estimates used by the Company becomes known, the Company reassesses its position
both with respect to accrued liabilities and other potential exposures.
Employment Agreements
As of July 31, 2011,
the Company had an employment arrangement with its President & Chief Executive Officer, whereby the Company is required to
pay an annual base salary of $475,000.  The term of service for this executive extended through March 16, 2008, which
term had not been formally extended as of July 31, 2011.  In the event the agreement is terminated, by reason other than
cause, death, voluntary retirement or disability, the Company is required to pay the employee in one lump sum twelve months base
salary and the average annual bonus.
As of July 31, 2011,
the Company has an employment agreement with an executive expiring March 2012, whereby the Company is required to pay an annual
base salary of $225,000.  In the event the agreement is terminated, by reason other than cause, death, voluntary retirement
or disability, the Company is required to pay the employee in one lump sum twelve months base salary and the average annual bonus.
As of July 31, 2011,
the Company has three at will employment agreements with Antigen employees requiring the Company to pay an annual aggregate salary
of $503,341 to the three employees.  In the event any agreement is terminated by reason other than death, disability,
a voluntary termination not for good reason (as defined in the agreement) or a termination for cause, the Company is required to
pay the employee severance in accordance with the terms of the individual employment agreement.
Collaboration Agreements
The Company has a research
and development agreement with Fertin Pharma A/S (Fertin) whereby the parties have established collaboration for the development
of a metformin medicinal chewing gum for the treatment of Type-2 diabetes mellitus and obesity.  The agreement includes
certain milestone payments required of the Company upon Fertin's completion of various development phases.  The
Company is required to pay all development costs related to the development of the product together with royalty payments amounting
to five percent of the sale or licensing of the products.  In lieu of receiving reimbursement for development costs,
Fertin, at its discretion and upon written notice, may elect to receive royalty payments amounting to twenty-five percent of the
sale or licensing of the products.  The agreement shall remain in effect ten years from the date of market introduction
and commercial sale.  Either party may terminate the agreement by providing sixty days written notice.  Through
the fiscal year ended July 31, 2011, the Company has not paid any milestone or royalty payments relating to this agreement and
has paid approximately $223,000, in the aggregate, to Fertin under the agreement for materials and development costs.
F-
31
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Amarantus - Letter
of Agreement
On May 30, 2011, the
Company entered into a binding letter agreement with Amarantus Biosciences, Inc. ("Amarantus"), relating to an arrangement
for intellectual property licensing and collaboration.  Pursuant to the letter agreement, definitive agreements were
to be delivered on July 15, 2011, but definitive agreements have not yet been delivered or signed to date.  Under the
letter agreement, the Company will grant an exclusive, worldwide license to its buccal drug delivery technologies to Amarantus
for use with certain of Amarantus' proprietary technologies in exchange for a non-refundable license fee of $10 million.   Amarantus
will bear all costs associated with such use, but the Company will retain ownership of any improvements to its buccal drug delivery
technologies.  The license fee will be payable in whole or in part in shares of Amarantus common stock.  The
number of shares of Amarantus common stock to be issued to the Company on the closing date in payment of the license fee may not
exceed 9.99% of Amarantus' issued and outstanding shares of common stock.  To the extent the license fee is not
paid by Amarantus common stock, the remaining balance will be paid pursuant to a Promissory Note to be issued to the Company for
the balance of the license fee.  The Company will have the option to terminate the letter agreement if, on the closing
date, either: (1) the number of shares of Amarantus common stock issued in part payment of the license fee is less than 7,125,000
shares, or (2) the amount of the Promissory Note issued in payment of the remainder of the license fee is more than $5,000,000.
In addition, the parties
will collaborate in the research and development of certain of Amarantus' proprietary technologies for application in the
treatment of diabetes.  The Company will fund direct expenditures incurred in the collaborative research and development
in accordance with a budget to be agreed upon, up to a maximum of $5,000,000 over a period of three years.  The Company
will have the option to acquire licenses to certain Amarantus technologies in connection with collaborative developments in the
treatment of diabetes.
The letter agreement
provides that Amarantus will pay the Company a 10% royalty on future gross sales of products which use the Company's technologies,
in addition to milestone payments upon achieving certain levels of gross sales and royalties representing a portion of any licensing
or sublicensing arrangements that Amarantus enters into for the commercialization of products which use the Company's technologies.
Note 10 - Related Party
Transactions
:
Through April 20, 2011,
the Company used a management company to manage all of its real estate properties. The property management company is owned by
two of the Company's former executive officers.  For the years ended July 31, 2011, 2010 and 2009, the Company
has paid the management company $40,778, $55,691 and $47,981, respectively, in management fees.  The arrangement with
the management company was formally terminated on April 20, 2011 and no further property management fees will be paid to this company.
Note 11 - Long-Term Debt
:
Long-term debt consists
of the following:
July 31,
2011
2010
Mortgage payable - interest at 6.822 percent per annum, monthly principal and interest payments of $2,447, due August 2011, secured by real property located at 98 Stafford Drive, Brampton, Canada
$
264,908
$
$255,674
Mortgage payable - interest at 6.822 percent per annum, monthly principal and interest payments of $3,947, due August 2011, secured by real property located at 1740 Sismet Road, Mississauga, Canada
427,255
412,362
Mortgage payable - interest at 6.75 percent per annum, monthly payments of principal and interest of $6,317, due May 2015, secured by first mortgage over real property located at 17 Carlaw Avenue and 33 Harbour Square, Toronto, Canada
645,443
627,056
Mortgage payable - interest at 10.0 percent per annum, monthly payments of principal and interest of $2,738, due November 2013, secured by real property located at 13-14, 11 Carlaw Avenue, Toronto, Canada
186,632
185,665
Mortgage payable - interest at 8.5 percent per annum, monthly payments of interest only of $2,964, principal payment due August 2012 secured by real property located at 10-11, 11 Carlaw Avenue, Toronto, Canada
418,480
387,600
Mortgage payable - interest at 5.91 percent per annum, monthly interest payments of $9,633, principal due April 2014, secured by secondary rights to real property located at 1-8, 11 Carlaw Avenue, Toronto, Canada
1,137,348
1,097,575
Total Debt
3,080,066
2,965,932
Less Current Maturities of Long-Term Debt
1,210,271
1,141,861
Total Long-Term Debt
$
1,869,795
$
1,824,071
F-
32
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Aggregate maturities
of long-term debt of the Company due within the next five years are as follows:
Year
Amount
2012
$
1,210,271
2013
106,545
2014
1,226,510
2015
34,240
2016
502,500
Thereafter
—
Total
$
3,080,066
The mortgages related to the properties at 98 Stafford Drive, Brampton and 1740 Sismet Road, Mississauga were discharged on August 26, 2011, in conjunction with the sales of those properties.
For the years ended July 31, 2011, 2010 and 2009, the Company incurred $205,539, $206,838 and $193,351, respectively in interest expense on its long-term debt.
Note 12 - Series A 9%
Convertible Preferred Stock
:
The Company has authorized
5,500 shares of Series A 9% Convertible Preferred Stock with a stated value of one-thousand ($1,000.00) per share.  Pursuant
to a securities purchase agreement dated July 8, 2011, the Company sold an aggregate of 2,575 shares of convertible preferred stock,
as well as 17,166,666 accompanying warrants. An aggregate of 17,166,667 shares of the Company's common stock are issuable
upon conversion of the convertible preferred stock which was issued at the initial closing.
Subject to certain
ownership limitations, the convertible preferred stock is convertible at the option of the holder at any time into shares of the
Company's common stock at an effective conversion price of $0.15 per share, and will accrue a 9% dividend until July 8, 2014
and, beginning on July 8, 2014 and on each one year anniversary thereafter, such dividend rate will increase by an additional 3%.
The dividend will be payable quarterly on September 30, December 31, March 31 and June 30, beginning on September 30, 2011 and
on each conversion date in cash, or at the Company's option, in shares of common stock. In the event that the convertible
preferred stock is converted prior to July 8, 2014, the Company will pay the holder of the converted preferred stock an amount
equal to $270 per $1,000 of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid
on such converted preferred stock before the relevant conversion date. Such "make-whole payment" may be made in cash
or, at the Company's option, in shares of its common stock. In addition, beginning July 8, 2014, the Company will pay dividends
on shares of preferred stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than
dividends in the form of common stock) actually paid on shares of the common stock when, and if such dividends are paid. The Company
will incur a late fee of 18% per annum on unpaid dividends.
The conversion price
of the convertible preferred stock is subject to adjustment in the case of stock splits, stock dividends, combinations of shares,
similar recapitalization transactions and certain pro-rata distributions to common stockholders. The conversion price will also
be adjusted if the Company sells or grants any shares of common stock or securities convertible into, or rights to acquire, common
stock at an effective price per share that is lower than the then conversion price, except in the event of certain exempt issuances.
In addition, the holders of convertible preferred stock will be entitled to receive any securities or rights to acquire securities
or property granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders
had converted all of their shares of convertible preferred stock. In the event of a fundamental transaction, such as a merger,
consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the holders of convertible preferred
stock will be entitled to receive, upon conversion of their shares, any securities or other consideration received by the holders
of the Company's common stock pursuant to the fundamental transaction.
The Company may become
obligated to redeem the convertible preferred stock in cash upon the occurrence of certain triggering events, including the failure
to provide an effective registration statement covering shares of common stock issuable upon conversion of the convertible preferred
stock, material breach of certain contractual obligations to the holders of the convertible preferred stock, the occurrence of
a change in control of the Company, the occurrence of certain insolvency events relating to the Company, or the failure of the
Company's common stock to continue to be listed or quoted for trading on one or more specified United States securities exchanges
or regulated quotation service. Upon the occurrence of certain triggering events, each holder of convertible preferred stock will
have the option to redeem such holder's shares of convertible preferred stock for a redemption price payable in shares of
common stock or receive an increased dividend rate of 18% on all of such holder's outstanding convertible preferred stock.
F-
33
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
In conjunction with
the issuance of the convertible preferred stock, the Company also issued 17,166,666 warrants to the investors.  Subject
to certain ownership limitations, the warrants will be exercisable at any time after their date of issuance and on or before the
fifth-year anniversary thereafter at an exercise price of $0.25 per share of common stock. The exercise price of the warrants and,
in some cases, the number of shares issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends,
combinations of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The exercise
price and number of shares of common stock issuable upon exercise will also be adjusted if the Company sells or grants any shares
of common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant holders will be entitled
to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders
of its common stock to the same extent as if such holders had exercised all of their warrants. In the event of a fundamental transaction,
such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the warrant
holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received by the holders
of the Company's common stock pursuant to the fundamental transaction.  These warrants have been classified as
derivative liabilities and are described further in
Note 13 – Derivative Liabilities
.
In addition, until
the first anniversary of date of the securities purchase agreement, each investor may, in its sole determination, elect to purchase,
severally and not jointly with the other investors, in one or more purchases, in the ratio of such investor's original subscription
amount to the original aggregate subscription amount of all investors, additional units consisting of convertible preferred stock
and warrants at a purchase price of $1,000 per unit with an aggregate subscription amount thereof of up to $2,575,000, which units
will have terms identical to the units of convertible preferred stock and warrants issued in connection with the July 2011 closing.  These
additional investment rights of the investors have been classified as derivative liabilities and are described further in
Note
13 – Derivative Liabilities
.
As of July 31, 2011,
8,586,665 shares of common stock had been issued upon the conversion of 1,288 shares of convertible preferred stock and 2,323,083
shares of common stock were issued as "make whole payments" on such conversions of the convertible preferred stock.  As
of July 31, 2011, there remained 1,287 shares of convertible preferred stock outstanding which are discounted at 100% of their
face value of $1,287,000 and are classified in equity on the consolidated balance sheet under the caption "Series A 9% Convertible
Preferred Stock".  The "make whole payments" on the remaining convertible preferred stock in the amount
of $347,490 are included in Accounts Payable and Accrued Expenses (see Note 8).  The total make whole payments at the
date of issuance, in the amount of $695,250, were accrued on the issuance date, with such amount allocated as described directly
below, when accounting for the initial proceeds from the convertible preferred stock financing.
Accounting for proceeds
from the convertible preferred stock financing
The net cash proceeds
from the convertible preferred stock financing were $2,315,000.  The proceeds from the financing were  allocated
first to the warrants that were issued in the financing, second to the additional investment rights associated with the financing
and third to the make whole payments.  As the assigned fair values were greater than the net cash proceeds from the transaction,
the excess was treated as a "deemed dividend" for accounting purposes and is reported on the Company's consolidated
statement of operations under the caption "Preferred Stock Dividend".  The calculation methodologies for
the fair values of the derivative warrant liability and the derivative additional investment rights liability are described in
Note 13 – Derivative Liabilities
below.  The fair values assigned to each component and the calculation
of the amount of the deemed dividend are as follows:
Accounting allocation of initial proceeds
Net proceeds
$
2,315,000
Derivative warrant liability fair value
(1,871,167
)
Derivative additional investment rights fair value
(515,000
)
Make whole payments liability
(695,250
)
Deemed dividend
$
(766,417
)
Subsequent to July 31, 2011, up to the date of this report, an additional 667 shares of convertible preferred stock were converted to common stock in accordance with the terms of the securities purchase agreement dated July 8, 2011.  As of September 30, 2011, as well as the date of this report, 620 shares of convertible preferred stock remained outstanding.  The September 30, 2011 quarterly dividend payment of $12,383, as pro-rated for the period from July 8, to September 30, 2011 was paid in shares of the Company's common stock.
Note 13 - Derivative Liabilities:
Derivative warrant
liability
The Company has
warrants outstanding with price protection provisions that allow for the reduction in the exercise price of the warrants in the
event the Company subsequently issues stock or securities convertible into stock at a price lower than the exercise price of the
warrants.  Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be
purchased upon exercise of each of these warrants shall be increased or decreased proportionately, so that after such adjustment
the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect
immediately prior to such adjustment.  As of August 1, 2009, the Company accounted for its warrants with price protection
in accordance with FASB ASC Topic 815.
F-
34
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Accounting for
Derivative Warrant Liability
The Company's
derivative warrant instruments have been measured at fair value at July 31, 2011 and 2010 using the binomial lattice model.  The
Company recognizes all of its warrants with price protection in its consolidated balance sheet as liabilities.  The liability
is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of operations.  The
initial recognition and subsequent changes in fair value of the derivative warrant liability have no effect on the Company's
cash flows.
The derivative warrants
outstanding at July 31, 2011 are all currently exercisable with a weighted-average remaining life of 4.70 years.
The revaluation
of the warrants at each reporting period, as well as the charges associated with issuing additional warrants due to the price protection
features, resulted in the recognition of income of $2,220,916 and $4,125,590 within the Company's consolidated statements
of operations for the fiscal years ended July 31, 2011 and 2010, respectively, under the caption "Change in fair value of
derivative warrant liability".  The fair value of the warrants at July 31, 2011 and 2010 is $8,745,508 and $5,679,721,
respectively, which is reported on the consolidated balance sheet under the caption "Derivative Warrant Liability".  The
following summarizes the changes in the value of the derivative warrant liability from the date of the Company's adoption
of the provisions of FASB ASC Topic 815 on August 1, 2009 until July 31, 2011:
Value
No. of Warrants
Balance at August 1, 2009– Derivative warrant liability
$
19,825,865
35,966,118
Exercise of warrants classified as derivative warrant liabilities
(10,020,554
)
(19,462,778
)
Decrease in fair value of derivative warrant liability
(4,125,590
)
n/a
Balance at July 31, 2010 – Derivative warrant liability
$
5,679,721
16,503,340
Additional warrants issued in January to April 2011 financings
3,415,536
16,056,000
Additional warrants issued in July 2011 financing
1,871,167
17,166,666
Additional warrants from price protection features of existing warrants
3,867,678
30,508,011
Decrease in fair value of derivative warrant liability
(6,088,594
)
n/a
Balance at July 31, 2011 – Derivative warrant liability
$
8,745,508
80,234,017
Fair Value Assumptions
Used in Accounting for Derivative Warrant Liability
The Company has
determined its derivative warrant liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model
to calculate the fair value as of July 31, 2011 and 2010.  The binomial lattice model requires six basic data inputs:
the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility
of the stock price in the future, and the dividend rate.  Because the warrants contain the price protection feature,
the probability that the exercise price of the warrants would decrease as the stock price decreased was incorporated into the valuation
calculations.  The key inputs used in the July 31, 2011 and 2010 fair value calculations were as follows:
July 31,
2011
2010
Current exercise price
$0.15 and $0.25
$
0.33
Time to expiration
4.70 years
5.75 years
Risk-free interest rate
1.23
%
1.87
%
Estimated volatility
108
%
104
%
Dividend
-0-
-0-
Stock price on July 31
$
0.13
$
0.40
Derivative additional
investment rights liability
The benefit received
by the participants in the July 2011 Series A 9% Convertible Preferred Stock transaction in respect to the right to make an additional
investment with the same terms as the July 2011 transaction was determined to be an embedded derivative instrument and has been
measured at fair value using the binomial lattice model.  The liability will be revalued at each subsequent reporting
period prior to its expiry in July 2012 and any changes in fair value will be recognized in the consolidated statements of operations.  The
initial recognition and subsequent changes in fair value of the derivative additional investment rights liability have no effect
on the Company's cash flows.
F-
35
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
The Company has
determined the derivative additional investment rights liability to be a Level 2 fair value measurement and has used the binominal
lattice pricing model at the date of issuance on July 8, 2011 and as of July 31, 2011 to measure the fair value.  The
fair value of the derivative liability associated with the additional investment rights was determined to be $515,000.  The
key inputs used in the fair value calculations were as follows:
Current exercise price
$
0.25
Time to expiration
1.0 year
Risk-free interest rate
1.23
%
Estimated volatility
58
%
Dividend
-0-
Stock price
$
0.13
Note 14 - Stockholders'
(Deficiency)/Equity
:
Warrants
As of July 31, 2011,
the Company has the following warrants to purchase common stock outstanding:
Number of Shares
Warrant Exercise
Warrant
To be Purchased
Price per Share
Expiration Date
100,000
$
1.71
March 3, 2012
140,000
$
1.45
May 27, 2012
365,625
$
0.33
May 31, 2012
50,000
$
0.94
March 9, 2013
125,000
$
3.75
March 26, 2013
8,844,926
$
0.76
December 15, 2014
3,572,971
$
0.79
February 4, 2015
300,000
$
0.39
(average)
February 9, 2015
200,000
$
1.25
March 7, 2015
6,022,651
$
1.00
March 15, 2015
26,760,001
$
0.15
January 16, 2016*
30,648,261
$
0.15
March 31, 2016*
17,166,666
$
0.25
July 11, 2016*
5,659,089
$
0.15
September 30, 2016*
99,955,190
* Subject to price
protection provisions as described below.
The outstanding warrants
at July 31, 2011 have a weighted average exercise price of $0.31 per share and have a weighted average remaining life of 4.45 years.
The Company has 26,760,001
warrants with a current exercise price of $0.15 and an expiry date of January 16, 2016, 30,648,261 warrants with a current exercise
price of $0.15 and an expiry date of March 31, 2016, 17,166,666 warrants with a current exercise price of $0.25 and an expiry date
of July 11, 2016 and 5,659,089 warrants with a current exercise price of $0.15 and an expiry date of September 30, (80,234,017
warrants in total), which have price protection provisions that allow for the reduction in the current exercise price upon the
occurrence of certain events, including the Company's issuance of common stock or securities convertible into or exercisable
for common stock, such as options and warrants, at a price per share less than the exercise price then in effect.  For
instance, if the Company issues shares of its common stock or options exercisable for or securities convertible into common stock
at an effective price per share of common stock less than the exercise price then in effect, the exercise price will be reduced
to the effective price of the new issuance.  Simultaneously with any reduction to the exercise price, the number of shares
of common stock that may be purchased upon exercise of each of these warrants shall be increased proportionately, so that after
such adjustment the aggregate exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise
price in effect immediately prior to such adjustment.
The Company's
issuance of the following securities will not trigger the price protection provisions of the warrants described above that were
issued in connection with the March 2008 private placement.  (a) shares of common stock or standard options to the Company's
directors, officers, employees or consultants pursuant to a board-approved equity compensation program or other contract or arrangement
(up to an aggregate amount of 5,608,926, representing 5% of the common stock issued and outstanding immediately prior to March
31, 2008); (b) shares of common stock issued upon the conversion or exercise of any security, right or other instrument convertible
or exchangeable into common stock (or securities exchangeable into common stock) issued prior to March 31, 2008; (c) the shares
of common stock issued upon exercise of the warrants issued in March 2008; and (d) shares of common stock and warrants in connection
with strategic alliances, acquisitions, mergers, and strategic partnerships, the primary purpose of which is not to raise capital,
and which are approved in good faith by the Company's board of directors (up to an aggregate number of 11,217,852, representing
10% of the shares of common stock issued and outstanding immediately prior to March 31, 2008). On July 8, 2011, the Company's
issuance of common stock triggered the price protection features of the warrants that were issued in March 2008 resulting in a
decrease of the exercise price from $0.25 to $0.15 per share and an increase in the number of warrants from 21,784,410 to 36,307,350.
F-
36
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
The Company's
issuance of the following securities will not trigger the price protection provisions of the warrants issued on January 25, 2011
and in March and April 2011:   (I) (a) shares of common stock or options to employees, officers, or directors of
the Company pursuant to plans approved by a majority of the non-employee directors of the Company or pursuant to independent contractors
pursuant to other agreements or arrangements in existence as of January 24, 2011, (b) securities issued upon the exercise or exchange
of or conversion of any securities issued under the Securities Purchase Agreement dated January 24, 2011 and/or other securities
exercisable or exchangeable for or convertible into shares of common stock issued and outstanding on January 24, 2011, provided
that such securities have not been amended since their issue date through the date of conversion, exercise or exchange to increase
the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (except
certain adjustments to warrants expiring in March 2016 and September 2016 are not prohibited), and (c) shares of common stock or
warrants to trade vendors of the Company approved by a majority of the non-employee members of the Board of Directors; provided
that (II) (i) the shares issued under paragraphs I(a) and I(c) shall not, in the aggregate exceed 1,500,000 shares in each 30-day
period during the first 90 days after January 24, 2011, (ii) there is a reasonable relationship between the value of the common
stock or options issued pursuant to paragraphs I(a) and I(c) and the value of services rendered or goods provided and (iii) the
Company does not rely in whole or in part on the exemptions provided in Sections 3(a)(9) or 3(a)(10) of the Securities Act.  On
July 8, 2011, the Company's issuance of common stock triggered the price protection features of the warrants that were issued
on January 25, 2011 and in March and April 2011 resulting in a decrease of the exercise price from $0.25 to $0.15 per share and
an increase in the number of warrants from 16,056,000 to 26,760,001.
The Company accounts
for the warrants with price protection provisions in accordance with FASB ASC Topic 815 as described in Note 13 above.
Preferred Stock
The Company has authorized
1,000,000 shares of preferred stock with a par value of one-tenth of a cent ($.001) per share.  The preferred stock may
be issued in various series and shall have preference as to dividends and to liquidation of the Company.  The Company's
Board of Directors is authorized to establish the specific rights, preferences, voting privileges and restrictions of such preferred
stock, or any series thereof.  At July 31, 2010, no shares of preferred stock were issued or outstanding. At July 31,
2011, 1,287 shares of the Company's non-voting Series A 9% Convertible Preferred Stock were issued and outstanding.  See
Note 12 - Series A 9% Convertible Preferred Stock
above.
Equity Instruments
Issued for Services Rendered
During the years ended
July 31, 2011, 2010 and 2009, the Company issued stock options, warrants and shares of common stock in exchange for services rendered
to the Company.  The fair value of each stock option and warrant was valued using the Black Scholes pricing model which
takes into account as of the grant date the exercise price and expected life of the stock option or warrant, the current price
of the underlying stock and its expected volatility, expected dividends on the stock and the risk free interest rate for the term
of the stock option or warrant.  Shares of common stock are valued at the quoted market price on the date of grant.  The
fair value of each grant was charged to the related expense in the consolidated statement of operations for the services received.
Note 15 – Stock-Based
Compensation
:
Stock Option Plans
As of July 31, 2011,
the Company had three stockholder-approved stock incentive plans under which shares and options exercisable for shares of common
stock have been or may be granted to employees, directors, consultants and advisors. A total of 2,000,000 shares of common stock
are reserved for issuance under the 2000 Stock Option Plan (the 2000 Plan), a total of 12,000,000 shares of common stock are reserved
for issuance under the 2001 Stock Option Plan (the 2001 Plan) and 30,000,000 shares of common stock are reserved for issuance under
the 2006 Stock Plan (the 2006 Plan). In July 2009, the 2006 Plan was amended to increase the reserved shares from 10,000,000 to
30,000,000.  Restricted shares can only be issued under the 2006 Plan. At July 31, 2011, there were 2,000,000, 3,617,194
and 15,096,290 shares of common stock reserved for future awards under the 2000 Plan, 2001 Plan and 2006 Plan, respectively.  The
Company issues new shares of common stock from the shares reserved under the respective Plans upon conversion or exercise of options
and issuance of restricted shares.
F-
37
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
The 2000, 2001 and
2006 Plans (the Plans) are administered by the Board of Directors (the Board). The Board is authorized to select from among eligible
employees, directors, advisors and consultants those individuals to whom options are to be granted and to determine the number
of shares to be subject to, and the terms and conditions of the options. The Board is also authorized to prescribe, amend and rescind
terms relating to options granted under the Plans. Generally, the interpretation and construction of any provision of the Plans
or any options granted hereunder is within the discretion of the Board.
The Plans provide that
options may or may not be Incentive Stock Options (ISOs) within the meaning of Section 422 of the Internal Revenue Code. Only employees
of the Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants are eligible
to receive options which are not ISOs, i.e. "Non-Qualified Options." The options granted by the Board in connection
with its adoption of the Plans were Non-Qualified Options. In addition, the 2006 Plan also provides for restricted stock grants.
Share-based employee
compensation related to stock options for the years ended July 31, 2011, 2010 and 2009 amounted to $936,465, $885,872 and $45,417
for each year and were charged to the consolidated statements of operations.  Share-based employee compensation related to
common stock grants for the years ended July 31, 2011, 2010 and 2009 amounted to $100,999 $104,738 and $198,128, respectively,
and were charged to the consolidated statements of operations.
The fair value of each
option granted is estimated on grant date using the Black-Scholes option pricing model which takes into account as of the grant
date the exercise price and expected life of the option, the current price of the underlying stock and its expected volatility,
expected dividends on the stock and the risk-free interest rate for the term of the option.  The following is the average
of the data used to calculate the fair value:
Risk-Free
Expected
Expected
Expected
Interest Rate
Life (Years)
Volatility
Dividends
July 31, 2011
0.013
%
5.0
101
%
-0-
July 31, 2010
0.14
%
6.5
104
%
-0-
July 31, 2009
0.17
%
5.0
101
%
-0-
The following is a
summary of the common stock options granted, forfeited or expired and exercised under the Plan:
Weighted Average
Exercise Price
Options
per Share
Outstanding August 1, 2008
6,246,638
$
0.66
Granted
50,000
$
0.29
Forfeited or expired
(1,129,500
)
$
1.68
Exercised
(100,000
)
$
0.56
Outstanding - July 31, 2009
5,067,138
$
0.44
Granted
2,705,000
$
0.63
Forfeited
(270,000
)
$
0.92
Expired
(36,500
)
$
0.63
Exercised
—
$
0.00
Outstanding - July 31, 2010
7,465,638
$
0.49
Granted
3,300,000
$
0.28
Forfeited or expired
(2,848,704
)
$
0.41
Exercised
(576,752
)
$
0.001
Outstanding - July 31, 2011
7,340,182
$
0.46
Exercisable - July 31, 2011
6,494,346
$
0.44
The 7,340,182 outstanding
options at July 31, 2011 had a weighted average remaining contractual term of 4.5 years.
Options typically vest
over a period of two to four years and have a contractual life of five to ten years.
F-
38
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
The following is a
summary of the non-vested common stock options granted, vested and forfeited under the Plan:
Weighted Average
Grant Date
Options
Fair Value
Outstanding - August 1, 2010
2,021,669
$
0.53
Granted
3,300,000
$
0.21
Vested
(4,097,082
)
$
0.28
Forfeited
(378,751
)
$
0.55
Outstanding - July 31, 2011
845,836
$
0.50
As of July 31, 2011,
the Company had $190,349 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted
under the Plan.  That cost is expected to be recognized over a weighted-average period of 2.2 years.
During the twelve months
ended July 31, 2011, the Company granted 3,300,000 options to executives, directors and management employees, as compensation.
The total fair value of the options at the date of grant was $692,010. The options vested immediately and a charge of $692,010
was recorded at the date of grant. The fair value of each option granted was estimated on the grant date using the Black-Scholes
option pricing model, taking into account the grant date exercise price and current price of the underlying stock of $0.282, an
expected life of the option of 5 years, an expected volatility of 101.3%, expected dividends on the stock of $0 and the risk-free
interest rate for the term of the option of 0.13%.
During the twelve
months ended July 31, 2010, the Company modified the terms of 4,535,638 outstanding options which resulted in a charge to operations
in the amount of $875,773.  The fair value of modification cost is estimated as the difference of options' fair
value before and after modification date.  The estimates employ the Black-Scholes option pricing model, which takes into
account the exercise price ($0.001 – $0.94), expected life of the option (5 years), the current price of the underlying stock
($0.59) and its expected volatility (109.05%), expected dividends on the stock ($0) and the risk-free interest rate for the term
of the option (0.11%).
The following table
summarizes information on stock options outstanding at July 31, 2011:
Options Outstanding
Weighted
Number
Weighted
Average
Outstanding
Average
Remaining
Aggregate
Range of
at
Exercise
Life
Intrinsic
Exercise Price
July 31, 2011
Price
(Years)
Value
$0.001 - $0.18
542,154
$
0.001
3.24
$0.19
-
$0.56
3,450,000
$
0.28
4.60
$0.57
-
$0.63
550,000
$
0.59
3.24
$0.64
-
$0.65
1,758,250
$
0.64
5.82
$0.66
-
$0.96
1,039,778
$
0.94
3.24
7,340,182
$
0.46
4.50
$
69,938
Options Exercisable
Weighted
Number
Weighted
Average
Outstanding
Average
Remaining
Aggregate
Range of
at
Exercise
Life
Intrinsic
Exercise Price
July 31, 2011
Price
(Years)
Value
$0.001 - $0.18
542,154
$
0.001
3.24
$0.19
-
$0.56
3,450,000
$
0.28
4.60
$0.57
-
$0.63
550,000
$
0.59
3.24
$0.64
-
$0.65
912,414
$
0.64
6.57
$0.66
-
$0.96
1,039,778
$
0.94
3.24
6,494,346
$
0.44
4.43
$
69,938
For the Year Ended July 31,
2011
2010
2009
Weighted Average Grant Date Fair Value of Options Granted
$
0.21
$
0.53
$
0.22
Aggregate Intrinsic Value of Options Exercised
$
166,681
$
—
$
15,111
Cash Received for Exercise of Stock Options
$
577
$
—
$
56,000
F-
39
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
The intrinsic value
is calculated as the difference between the market value as of July 31, 2011, 2010 and 2009 and the exercise price of the shares
on the respective dates.  The market values as of July 31, 2011, 2010 and 2009 were $0.13, $0.40, and $0.65, respectively,
based on the high and low bid information for July 31, 2011 and as reported by the NASDAQ Stock Market as of July 31, 2010 and
2009.
Note 16 - Qualifying Therapeutic
Discovery Project Program
:
In the Company's
second fiscal quarter ended January 31, 2011, the Company's wholly-owned subsidiary Antigen Express, Inc. received notification
that it had been awarded a total cash grant of $488,959 under the Qualifying Therapeutic Discovery Project program administered
under Section 48D of the Internal Revenue Code, all of which relates to qualifying expenses that had previously been incurred.  The
Company recognized the full amount of the grant in the fiscal year ended July 31, 2011, as the Company has already incurred all
of the qualifying expenses and the amount has been fully received.  Since this program is non-recurring in nature, the
Company elected to classify this payment as other income in the consolidated statements of operations for the fiscal year ended
July 31, 2011 and it is reported in the "Miscellaneous Income" line item.
Note 17 - Net Loss per
Share
:
Basic loss per share
("EPS") and Diluted EPS for the years ended July 31, 2011, 2010 and 2009 have been computed by dividing the net loss
available to common stockholders for each respective period by the weighted average shares outstanding during that period.  All
outstanding options, warrants, non-vested restricted stock and shares to be issued upon conversion of the outstanding convertible
preferred stock, representing approximately 115,875,372, 44,892,383 and  51,560,258 incremental shares, have been excluded
from the respective 2011, 2010 and 2009 computation of diluted EPS as they are anti-dilutive due to the losses generated.
Note 18 - Supplemental
Disclosure of Cash Flow Information
:
For the Years Ended July 31,
2011
2010
2009
Cash paid during the year for:
Interest
$
208,906
$
210,082
$
1,075,889
Income taxes
$
—
$
—
$
—
Disclosure of non-cash
investing and financing activities:
Year Ended July 31, 2011
Issuance of common stock as payment of dividends on preferred stock
$
347,760
Issuance of common stock as satisfaction of accounts payable and accrued expenses
$
1,110,867
Year Ended July 31, 2010
Issuance of common stock in satisfaction of accounts payable and accrued expenses
$
3,012,595
Par value of common stock issued in conjunction with cashless exercise of warrants
$
7,636
Year Ended July 31, 2009
Issuance of common stock as repayment of convertible debentures
$
16,112,399
Par value of common stock issued in conjunction with cashless exercise of warrants
$
9,909
Purchase of property and equipment through the issuance of obligations under capital lease
$
83,002
Issuance of common stock as satisfaction of accounts payable and accrued expenses
$
438,697
F-
40
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Note 19 - Segment Information
:
The Company follows
FASB ASC Topic 815 which establishes standards for the way that public business enterprises report information about operating
segments in annual financial statements and requires that those enterprises report selected information about operating segments
in interim financial reports.  This Topic also establishes standards for related disclosures about products and services,
geographic areas, and major customers.
This Topic uses a management
approach for determining segments.  The management approach designates the internal organization that is used by management
for making operating decisions and assessing performance as the source of the Company's reportable segments.  The
Company's management reporting structure provides for only one segment: the research, development and commercialization of
drug delivery systems and technologies for metabolic and immunological diseases.
The regions and countries
in which the Company had identifiable assets and revenues are presented in the following table.  Identifiable assets
are those that can be directly associated with a geographic area.
2011
2010
2009
Identifiable Assets
Canada
$
8,822,831
$
20,966,421
$
21,491,898
United States
3,128,053
3,154,963
3,321,859
Middle East, North Africa (MENA)
55,481
453,616
—
Total
$
12,006,365
$
24,575,000
$
24,813,757
Revenue
Canada
$
61,111
$
95,252
$
49,337
United States
60,867
430,516
605,238
Middle East, North Africa (MENA)
169,650
646,843
463,934
Total
$
291,628
$
1,172,611
$
1,118,509
Note 20 - Collaborative
Agreements
:
The Company has a research
and development agreement with Fertin Pharma A/S whereby the parties have established collaboration for the development of a metformin
medicinal chewing gum for the treatment of Type-2 diabetes mellitus and obesity (see Note 9).
Note 21 – Quarterly
Information (Unaudited)
:
The following schedule
sets forth certain unaudited financial data for the preceding eight quarters ending July 31, 2011.  In our opinion, the
unaudited information set forth below has been prepared on the same basis as the audited information and includes all adjustments
necessary to present fairly the information set forth herein.  The operating results for the quarter are not indicative
of results for any future period.
Q1
Q2
Q3
Q4
Fiscal Year July 31, 2011:
Revenues, net
$
173,943
$
29,560
$
65,583
$
22,542
Operating Loss
$
(7,773,820
)
$
(5,967,558
)
$
(5,061,959
)
$
(5,729,745
)
Net Loss
$
(6,877,267
)
$
(5,236,906
)
$
(4,116,953
)
$
(5,444,741
)
Net Loss available to common stockholders
$
(6,877,267
)
$
(5,236,906
)
$
(4,116,953
)
$
(6,211,158
)
Net Loss per share
$
(0.03
)
$
(0.02
)
$
(0.01
)
$
(0.02
)
Fiscal Year July 31, 2010:
Revenues, net
$
97,542
$
431,344
$
327,698
$
316,027
Operating Loss
$
(8,181,433
)
$
(7,339,090
)
$
(7,361,288
)
$
6,548,006
)
Net Loss
$
(5,142,385
)
$
(9,294,218
)
$
(4,567,550
)
$
(6,275,787
)
Net Loss available to common stockholders
$
(5,142,385
)
$
(9,294,218
)
$
(4,567,550
)
$
(6,275,787
)
Net Loss per share
$
(0.02
)
$
(0.04
)
$
(0.02
)
$
(0.02
)
Note 22 - Subsequent Events:
On August 26, 2011,
the Company sold two of its commercial properties held as investments for gross proceeds of $1,809,926.  These properties
had a net book value of $1,073,837 and the resulting gain on sale of these investment properties will be recognized in the first
quarter of fiscal 2012.  The net cash proceeds after discharge of mortgages and payment of real estate commissions was
just over $1,000,000.
The Company has evaluated
subsequent events occurring after the balance sheet date through the date the consolidated financial statements were issued.
On September 28, 2011,
the Company signed a letter agreement agreeing to convert an unsecured payable from May 2009 in the amount of approximately $1.1
million to a balance inclusive of interest and fees of approximately $2.2 million.  Per the letter agreement, such balance
will be settled in Antigen stock following the proposed spinout of Antigen.  The balance per the letter agreement has been
accrued at July 31, 2011 and has been included in our consolidated balance sheet under accounts payable and accrued expenses as
of such date.
F-
41
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
April 30, 2012
July 31, 2011
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents
$
1,194,578
$
2,798,797
Accounts receivable
—
8,690
Inventory (Note 5)
—
717,442
Other current assets (Note 12)
296,290
225,052
Total Current Assets
1,490,868
3,749,981
Property and Equipment, Net
851,423
1,271,867
Assets Held for Investment, Net
886,927
3,634,929
Patents, Net
3,038,855
3,349,588
TOTAL ASSETS
$
6,268,073
$
12,006,365
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable and accrued expenses (Note 6)
$
6,976,878
$
7,738,179
Deferred revenue
287,080
369,748
Current maturities of long-term debt
1,482,023
1,210,271
Total Current Liabilities
8,745,981
9,318,198
Long-Term Debt, Net
569,653
1,869,795
Derivative Warrant Liability (Note 11)
4,603,470
8,745,508
Derivative Additional Investment Rights Liability (Note 11)
437
515,000
Total Liabilities
13,919,541
20,448,501
Commitments and Contingencies (Notes 7 and 8)
Stockholders' Deficiency (Note 10):
Series A 9% Convertible Preferred Stock, $1,000 par value; authorized 5,500
shares at April 30, 2012 and July 31, 2011, respectively ; -0- and 1,287 shares
issued and outstanding at April 30, 2012 and July 31, 2011, respectively
—
—
Series B 9% Convertible Preferred Stock, $1,000 par value; authorized 2,000
and -0- shares at April 30, 2012 and July 31, 2011, respectively ; 2,000 and -0-
shares issued and outstanding at April 30, 2012 and July 31, 2011, respectively
—
—
Common stock, $.001 par value; authorized 750,000,000 shares at April 30,
2012 and July 31, 2011, respectively; 346,678,800 and 308,519,768 shares
issued and outstanding at April 30, 2012 and July 31, 2011, respectively
346,679
308,520
Additional paid-in capital
347,267,912
338,124,525
Deficit accumulated during the development stage
(356,035,942
)
(347,744,756
)
Accumulated other comprehensive income
769,883
869,575
Total Stockholders' Deficiency
(7,651,468
)
(8,442,136
)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY
$
6,268,073
$
12,006,365
The Notes to Consolidated Financial Statements
are an integral part of these statements.
F-
42
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF
OPERATIONS
Cumulative From
November 2, 1995
For the Nine Months Ended
For the Three Months Ended
(Date of Inception)
April 30,
April 30,
April 30,
2012
2011
2012
2011
2012
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenues, net
$
21,901
$
269,086
$
7,012
$
65,583
$
5,104,034
Cost of Goods Sold
9,122
143,360
2,230
55,482
1,618,388
Gross profit
12,779
125,726
4,782
10,101
3,485,646
Operating Expenses:
Research and development
3,835,715
7,859,382
1,127,047
1,754,325
130,824,443
Research and development - related party
—
—
—
—
220,218
Selling and marketing
167,316
806,798
18,258
207,848
9,335,355
General and administrative
3,732,027
10,262,883
1,325,747
3,109,887
146,645,004
General and administrative
    - related party
—
—
—
—
314,328
Total Operating Expenses
7,735,058
18,929,063
2,471,052
5,072,060
287,339,348
Operating Loss
(7,722,279
)
(18,803,337
)
(2,466,270
)
(5,061,959
)
(283,853,702
)
Other Income/(Expense):
Miscellaneous income
—
488,959
—
—
686,303
Income from assets held for investment, net
    (Note 13)
1,928,850
236,732
1,148,526
70,450
4,056,891
Interest income
1,215
5,985
450
1,154
7,781,589
Interest expense
(518,506
)
(153,385
)
(423,674
)
(52,301
)
(68,934,663
)
Change in fair value of derivative liabilities
    (Note 11)
(1,603,720
)
1,993,920
2,608,825
925,703
(1,238,257
)
Loss on extinguishment
    of debt
—
—
—
—
(14,134,068
)
Net (Loss)/Income Before Undernoted
(7,914,440
)
(16,231,126
)
867,857
(4,116,953
)
(355,635,907
)
Minority Interest Share of Loss
—
—
—
—
3,038,185
Net (Loss) /Income
(7,914,440
)
(16,231,126
)
867,857
(4,116,953
)
(352,597,722
)
Preferred Stock Dividend
376,746
—
376,746
—
3,438,220
Net (Loss)/Income Available to Common Stockholders
$
(8,291,186
)
$
(16,231,126
)
$
491,111
$
(4,116,953
)
$
(356,035,942
)
Net (Loss)/Income Per Common Share (Note 9)
Basic
$
(.024
)
$
(.060
)
$
.003
$
(.010
)
Diluted
$
(.024
)
$
(.060
)
$
.003
$
(.010
)
Shares Used to Compute (Loss)/Earnings per Share (Note 9)
Basic
326,340,807
279,968,884
345,539,723
292,370,915
Diluted
326,340,807
279,968,884
345,543,799
292,370,915
The Notes to Consolidated
Financial Statements are an integral part of these statements.
F-
43
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Cumulative From
For the Nine Months
November 2, 1995
Ended April
    30,
(Date of Inception)
2012
2011
to April 30,
    2012
(Unaudited)
(Unaudited)
(Unaudited)
Cash Flows From Operating Activities:
Net loss
$
(7,914,440
)
$
(16,231,126
)
$
(352,597,722
)
Adjustments to reconcile net loss to net cash
    used in operating activities:
Depreciation and amortization
472,146
561,304
9,768,028
Minority interest share of loss
—
—
(3,038,185
)
Reduction of notes receivable - common stock
    in exchange
for services rendered
—
—
423,882
Write-off of uncollectible notes receivable
    - common stock
—
—
391,103
Write-off of deferred offering costs
—
—
3,406,196
Write-off of abandoned patents
88,582
—
1,001,778
Gain on disposal of property and equipment
(1,793,087
)
—
(1,756,298
)
Loss on extinguishment of debt
—
—
14,134,069
Common stock issued as employee compensation
68,483
75,749
3,949,877
Amortization of options and option modifications
    as stock compensation
56,961
885,475
2,865,803
Common stock issued for services rendered
606,545
1,797,355
14,414,379
Amortization of prepaid services in conjunction
    with common stock issuance
—
—
138,375
Non-cash compensation expense
—
—
45,390
Stock options and warrants issued for services
    rendered
—
—
7,956,723
Issuance of warrants as additional exercise
    right inducement
—
—
21,437,909
Preferred stock issued for services rendered
—
—
100
Treasury stock redeemed for non-performance
    of services
—
—
(138,000
)
Amortization of deferred debt issuance costs
    and loan origination fees
—
—
2,405,629
Amortization of discount on convertible debentures
—
—
38,345,592
Common stock issued for interest on convertible
    debentures & preferred stock
347,490
—
1,105,004
Interest on short-term advance
—
—
22,190
Founders' shares transferred for services
    rendered
—
—
353,506
Fees in connection with refinancing of debt
—
—
113,274
Warrant repricing costs
—
—
3,198,604
Change in fair value of derivative liabilities
1,603,720
(1,993,920
)
1,238,257
Changes in operating assets and liabilities
    (excluding the effects of acquisition):
Accounts receivable
8,474
51,926
(15,043
)
Miscellaneous receivables
—
—
43,812
Inventory
716,415
443,626
(20,068
)
Other current assets
(70,693
)
153,278
(274,587
)
Accounts payable and accrued expenses
(1,267,420
)
336,322
14,975,136
Deferred revenue
(81,634
)
(19,854
)
281,093
Other, net
—
—
110,317
Net Cash Used in Operating
    Activities
(7,158,458
)
(13,939,865
)
(215,713,877
)
Cash Flows From Investing Activities:
Purchase of property and equipment
(2,416
)
(52,160
)
(4,809,439
)
Proceeds from sale of property and equipment
4,614,057
—
4,614,057
Costs incurred for patents
(110,929
)
(179,503
)
(2,777,200
)
Change in restricted cash
—
—
512,539
Proceeds from maturity of short term investments
—
—
195,242,918
Purchases of short-term investments
—
—
(195,242,918
)
Cash received in conjunction with merger
—
—
82,232
Advances to Antigen Express, Inc.
—
—
(32,000
)
Increase in officers' loans receivable
—
—
(1,126,157
)
Change in deposits
—
—
(652,071
)
Change in notes receivable - common stock
—
—
(91,103
)
Change in due from related parties
—
—
(2,222,390
)
Other, net
—
—
89,683
Net Cash Provided by/(Used
    in) Investing Activities
4,500,712
(231,663
)
(6,411,849
)
The Notes to Consolidated Financial Statements
are an integral part of these statements.
F-
44
GENEREX BIOTECHNOLOGY CORPORATION
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Cumulative From
For the Nine Months
November 2, 1995
Ended April
    30,
(Date of Inception)
2012
2011
to April 30,
    2012
(Unaudited)
(Unaudited)
(Unaudited)
Cash Flows From Financing Activities:
Proceeds from short-term advance
—
—
325,179
Repayment of short-term advance
—
—
(347,369
)
Proceeds from issuance of long-term debt
3,566,088
—
5,571,697
Repayment of long-term debt
(4,488,539
)
(86,016
)
(6,729,727
)
Repayment of obligations under capital lease
—
(7,818
)
(83,002
)
Change in due to related parties
—
—
154,541
Proceeds from exercise of warrants
30,000
—
45,728,281
Proceeds from exercise of stock options
—
577
5,002,493
Proceeds from minority interest investment
—
—
3,038,185
Proceeds from issuance of preferred stock
1,975,000
—
16,305,000
Redemption of SVR preferred stock
—
—
(100
)
Proceeds from issuance of convertible debentures,
    net
—
—
40,704,930
Payment of costs associated with convertible
    debentures
—
—
(722,750
)
Repayments of convertible debentures
—
—
(5,142,424
)
Purchase of treasury stock
—
—
(483,869
)
Proceeds from issuance of common stock, net
—
3,939,000
120,576,242
Purchase and retirement
    of common stock
—
—
(497,522
)
Net Cash Provided by
    Financing Activities
1,082,549
3,845,743
223,399,785
Effect of Exchange Rates on Cash
(29,022
)
10,399
(79,481
)
Net (Decrease)/Increase in Cash and Cash Equivalents
(1,604,219
)
(10,315,386
)
1,194,578
Cash and Cash Equivalents, Beginning of Period
2,798,797
13,880,870
—
Cash and Cash Equivalents, End of Period
$
1,194,578
$
3,565,484
$
1,194,578
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest
$
518,506
$
153,385
Income taxes
$
—
$
—
Disclosure of non-cash investing and financing
    activities:
Issuance of common stock
    as satisfaction of accounts payable and accrued expenses
$
—
$
1,008,220
Par value of common stock
    issued in conjunction with cashless exercise of warrants
$
20,460
$
998
Issuance of common stock
    as interest on convertible preferred stock
$
347,490
$
—
The Notes to Consolidated Financial Statements
are an integral part of these statements.
F-
45
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1.
Basis of Presentation
The accompanying unaudited interim
consolidated financial statements ("interim statements") have been prepared pursuant to the rules and regulations
for reporting on Form 10-Q. Accordingly, certain information and disclosures required by generally accepted accounting principles
for complete financial statements are not included herein. The interim statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's latest Annual Report on Form 10-K. The results for the
nine months ended April 30, 2012 may not be indicative of the results for the entire year.
Interim statements are subject
to possible adjustments in connection with the annual audit of the Company's accounts for fiscal year 2012. In the Company's
opinion, all adjustments necessary for a fair presentation of these interim statements have been included and are of a normal
and recurring nature.
The Company is a development
stage company, which has a limited history of operations and limited revenue to date. This revenue has been comprised mainly of
the sale of our confectionary products, although the Company has recognized $600,000 relating to upfront license fees for the
signing of license and distribution agreements for Generex Oral-lyn™. Additionally, the Company has several product candidates
that are in various research or early stages of pre-clinical and clinical development. There can be no assurance that the Company
will be successful in obtaining regulatory clearance for the sale of existing or any future products or that any of the Company's
products will be commercially viable.
Going Concern
The accompanying interim statements
have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities
and commitments in the normal course of business. The Company has experienced negative cash flows from operations since inception
and had an accumulated deficit at April 30, 2012 of approximately $356 million. The Company has funded its activities to date
almost exclusively from debt and equity financings, as well as the recent sales of non-essential real estate assets in August
2011.
The Company will continue to
require substantial funds to continue research and development, including pre-clinical studies and clinical trials of its product
candidates, and to commence sales and marketing efforts, if the FDA or other regulatory approvals are obtained.  Management's
plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common
stock, preferred stock offerings, issuances of debt and convertible debt instruments.  Management will be limited in the
financing activities that the Company undertakes in the near future as the securities purchase agreement that the Company entered
into on January 31, 2012 with certain investors prohibits the Company from (i) issuing additional equity securities until 60 days
after the effective date of a registration statement covering the resale of the common stock issuable upon exercise of the warrants
and conversion of the preferred stock sold in that transaction and (ii) issuing additional debt or equity securities with variable
conversion or exercise prices until February 1, 2013. Management is also actively pursuing financial and strategic alternatives,
including strategic investments and divestitures, industry collaboration activities and strategic partners.  Management has
sold, and is also seeking further sales of, non-essential real estate assets which are classified as Assets Held for Investment
to augment its cash position.
There are no assurances that
such additional funding will be achieved and that it will succeed in its future operations. The interim statements do not include
any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might
be necessary should the Company be unable to continue in existence. The Company's inability to obtain required funding in
the near future or its inability to obtain funding on favorable terms will have a material adverse effect on its operations and
strategic development plan for future growth. If the Company cannot successfully raise additional capital and implement its strategic
development plan, its liquidity, financial condition and business prospects will be materially and adversely affected, and the
Company may have to cease operations. These factors raise substantial doubt regarding the Company's ability to continue
as a going concern.
2.
Effects of Recent Accounting
                                                                       Pronouncements
Recently Adopted Accounting
Pronouncements
In January 2010, the Financial
Accounting Standards Board ("FASB") issued additional guidance on fair value measurements and disclosures which requires
reporting entities to provide information about movements of assets among Levels 1 and 2 of the three-tier fair value hierarchy
established by the existing guidance.
The guidance was effective for our fiscal year beginning August
1, 2011. The adoption of this new accounting guidance did not have a material impact on the Company's interim statements.
In May 2011, the FASB issued
further guidance on fair value measurements and disclosures which requires the categorization by level for items that are only
required to be disclosed at fair value and information about transfers between Level 1 and Level 2. In addition, the update provides
guidance on measuring the fair value of financial instruments managed within a portfolio and the application of premiums and discounts
on fair value measurements. The guidance requires additional disclosure for Level 3 measurements regarding the sensitivity of
fair value to changes in unobservable inputs and any interrelationships between those inputs. The guidance is effective for the
Company's interim period ended April 30, 2012. The adoption of this new accounting guidance did not have a material impact
on the Company's interim statements.
F-
46
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Recently Issued Accounting
Pronouncements
In June 2011, the FASB issued
guidance regarding the presentation of Comprehensive Income within financial statements. The guidance is effective for annual
periods beginning after December 15, 2011 and subsequent interim periods. The Company is currently evaluating the impact of this
new accounting guidance on its interim statements.
3.
Stock-Based Compensation
As of April 30, 2012, the Company
had three stockholder-approved stock incentive plans under which shares and options exercisable for shares of common stock have
been or may be granted to employees, directors, consultants and advisors. A total of 2,000,000 shares of common stock are reserved
for issuance under the 2000 Stock Option Plan (the "2000 Plan"), a total of 12,000,000 shares of common stock are
reserved for issuance under the 2001 Stock Option Plan (the "2001 Plan") and 30,000,000 shares of common stock are
reserved for issuance under the 2006 Stock Plan (the "2006 Plan"). Restricted shares can only be issued under the
2006 Plan. At April 30, 2012, there were 2,000,000, 3,739,444 and 14,726,577 shares of common stock reserved for future awards
under the 2000 Plan, 2001 Plan and 2006 Plan, respectively.
The 2000, 2001 and 2006 Plans
(the "Plans") are administered by the Board of Directors (the "Board"). The Board is authorized to select
from among eligible employees, directors, advisors and consultants those individuals to whom options are to be granted and to
determine the number of shares to be subject to, and the terms and conditions of the options. The Board is also authorized to
prescribe, amend and rescind terms relating to options granted under the Plans. Generally, the interpretation and construction
of any provision of the Plans or any options granted hereunder are within the discretion of the Board.
The Plans provide that options
may or may not be Incentive Stock Options ("ISOs") within the meaning of Section 422 of the Internal Revenue Code.
Only employees of the Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants
are eligible to receive options which are not ISOs, i.e. "Non-Qualified Options." The options granted by the Board
in connection with its adoption of the Plans were Non-Qualified Options. In addition, the 2006 Plan also provides for restricted
stock grants.
The fair value of each option
granted is estimated on the grant date using the Black-Scholes option pricing model which takes into account as of the grant date
the exercise price and expected life of the option, the current price of the underlying stock and its expected volatility, expected
dividends on the stock and the risk-free interest rate for the term of the option.
In the case of restricted stock
grants under the 2006 Plan, fair market value of the shares is established as the market price on the date of the stock grant.
The following is a summary of
the common stock options granted, forfeited or expired and exercised under the Plans for the nine months ended April 30, 2012:
Weighted
Average
Exercise
Aggregate
Price
Intrinsic
Options
Share
Value
Outstanding, August 1, 2011
7,340,182
$
0.465
Granted
—
n/a
Forfeited or expired
(327,250
)
0.716
Exercised
—
n/a
Outstanding, April 30, 2012
7,012,932
$
0.453
$
54,758
Exercisable, April 30, 2012
6,740,432
$
0.445
$
54,758
F-
47
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The 7,012,932 outstanding options at April 30, 2012
had a weighted average remaining contractual term of 3.8 years.
The following is a summary of
the non-vested common stock options granted, vested and forfeited under the Plan for the nine months ended April 30, 2012:
Weighted Average
Grant Date
Options
Fair Value
Outstanding, August 1, 2011
845,836
$
0.50
Granted
—
0.00
Vested
(470,836
)
0.53
Forfeited
(102,500
)
0.46
Outstanding, April 30, 2012
272,500
$
0.46
As of April 30, 2012, the Company
had $73,604 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under
the Plans. That cost is expected to be recognized over a weighted-average period of 1.45 years.
4.
Comprehensive Income
                                                                       and Loss
Comprehensive income, which includes
net income and the change in the foreign currency translation account, for the three months ended April 30, 2012, was $853,204.
Comprehensive loss, which includes net loss and the change in the foreign currency translation account, for the three months ended
April 30, 2011, was $4,041,033.
Comprehensive loss, which includes
net loss and the change in the foreign currency translation account, for the nine months ended April 30, 2012, was $8,014,132.
Comprehensive loss, which includes net loss and the change in the foreign currency translation account, for the nine months ended
April 30, 2011, was $16,126,975.
5.
Inventory
Inventory consists of the following:
April 30, 2012
July 31, 2011
Raw materials
$
—
$
502,195
Finished goods
—
215,247
Total
$
—
$
717,442
At July 31, 2011, 70% of the
inventory related to the Company's Oral-lyn™ product which was expected to be used primarily in future clinical trials,
while the remainder at July 31, 2011 related to the Company's over-the-counter confectionary products. As the Company is
no longer focusing resources on the sale of the over-the-counter confectionary products, the Company took a write-down of approximately
$207,000 in the nine months ended April 30, 2012 related to the remaining raw materials and finished goods pertaining to this
product line which is included in research and development expenses. The Company took a write-down of approximately $501,000 in
the nine months ended April 30, 2012, pertaining to the remaining raw material inventory related to Oral-lyn™, as such inventory
was not expected to be used up in clinical trials prior to its expiration date.
6.
Accounts Payable and
                                                                       Accrued Expenses
Accounts payable and accrued expenses
consist of the following:
April 30, 2012
July 31, 2011
Accounts Payable & Accruals – General and Administrative
$
3,679,270
$
4,805,091
Accounts Payable & Accruals – Research and Development
2,088,101
2,151,333
Accounts Payable & Accruals – Selling and Marketing
298,802
434,265
Accrued Make Whole Payments on Convertible Preferred Stock (see Note 10)
540,000
347,490
Executive Compensation and Directors' Fees Payable
370,705
—
Total
$
6,976,878
$
7,738,179
F-
48
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
7.
Pending Litigation
In February 2001, a former business
associate of the former Vice President of Research and Development ("VP") of the Company and an entity known as Centrum
Technologies Inc. ("CTI") commenced an action in the Ontario Superior Court of Justice against the Company and the
VP seeking, among other things, damages for alleged breaches of contract and tortious acts related to a business relationship
between this former associate and the VP that ceased in July 1996. The plaintiffs' statement of claim also seeks to enjoin
the use, if any, by the Company of three patents allegedly owned by CTI. The three patents are entitled
Liquid Formulations
for Proteinic Pharmaceuticals
,
Vaccine Delivery System for Immunization, Using Biodegradable Polymer Microspheres
,
and
Controlled Releases of Drugs or Hormones in Biodegradable Polymer Microspheres
. It is the Company's position
that the buccal drug delivery technologies which are the subject matter of the Company's research, development, and commercialization
efforts, including Generex Oral-lyn™ and the RapidMist™ Diabetes Management System, do not make use of, are not derivative
of, do not infringe upon, and are entirely different from the intellectual property identified in the plaintiffs' statement
of claim. On July 20, 2001, the Company filed a preliminary motion to dismiss the action of CTI as a nonexistent entity or, alternatively,
to stay such action on the grounds of want of authority of such entity to commence the action. The plaintiffs brought a cross
motion to amend the statement of claim to substitute Centrum Biotechnologies, Inc. ("CBI") for CTI. CBI is a corporation
of which 50 percent of the shares are owned by the former business associate and the remaining 50 percent are owned by the Company.
Consequently, the shareholders of CBI are in a deadlock. The court granted the Company's motion to dismiss the action of
CTI and denied the plaintiffs' cross motion without prejudice to the former business associate to seek leave to bring a
derivative action in the name of or on behalf of CBI. The former business associate subsequently filed an application with the
Ontario Superior Court of Justice for an order granting him leave to file an action in the name of and on behalf of CBI against
the VP and the Company. The Company opposed the application. In September 2003, the Ontario Superior Court of Justice granted
the request and issued an order giving the former business associate leave to file an action in the name of and on behalf of CBI
against the VP and the Company. A statement of claim was served in July 2004. The Company is not able to predict the ultimate
outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss, if any, from this legal
proceeding.
In May 2011, Rose C. Perri, the
Company's former Chief Operating Officer and Chief Financial Officer, commenced two proceedings against the Company. On
May 11, 2011, Ms. Perri filed a notice of application in the Ontario Superior Court of Justice, Commercial List, against the Company,
two of its affiliates (1097346 Ontario, Inc. and Generex Pharmaceuticals Inc.), three of the Company's independent directors
(John P. Barratt, Nola Masterson and Brian T. McGee), the President and Chief Executive Officer (Mark A. Fletcher), the Chief
Operating Officer (David Brusegard) and the Acting Chief Financial Officer (Stephen Fellows). The application has since been abandoned.
On May 20, 2011, Ms. Perri filed
a statement of claim (subsequently amended) in the Ontario Superior Court of Justice, naming as defendants the Company, Mr. Barratt,
Ms. Masterson, Mr. McGee, and Mr. Fletcher. In this action, Ms. Perri has alleged that defendants engaged in discrimination, harassment,
bad faith and infliction of mental distress in connection with the termination of her employment with the Company. Ms. Perri is
seeking damages in this action in excess of $7,000,000 for, among other things, breach of contract, breach of fiduciary duty,
violations of the Ontario Human Rights Code and aggravated and punitive damages. On September 20, 2011, the defendants filed a
statement of defense and counterclaim, also naming Time Release Corp., Khazak Group Consulting Corp., and David Khazak, C.A. as
defendants by counterclaim, and seeking damages of approximately $2.3 million in funds that the defendants allege Ms. Perri wrongly
caused the Company to pay to third parties in varying amounts over several years and an accounting of certain third-party payments,
plus interests and costs. The factual basis for the counterclaim involves payments made by the Company to third parties believed
to be related to Ms. Perri. The Company intends to defend this action and pursue its counterclaim vigorously and is not able to
predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range of potential loss,
if any, from this legal proceeding.
On June 1, 2011, Golden Bull
Estates Ltd. filed a claim (subsequently amended) in the Ontario Superior Court of Justice, naming the Company, 1097346 Ontario,
Inc. and Generex Pharmaceuticals Inc. as defendants. The plaintiff, Golden Bull Estates, is controlled by Ms. Perri. The plaintiff
alleges damages in the amount of $550,000 for breach of contract, $50,000 for punitive damages, plus interest and costs. The plaintiff's
claims relate to an alleged contract between the plaintiff and the Company for property management services for certain Ontario
properties owned by the Company. The Company terminated the plaintiff's property management services in April 2011. Following
the close of pleadings, the Company served a motion for summary judgment. The plaintiff responded by amending its statement of
claim to include a claim to the Company's interest in certain of its real estate holdings. The plaintiff has brought a motion
for leave to issue and register a Certificate of Pending Litigation in respect of this real estate. The Company has responded
to the motion which was scheduled to be heard on March 22, 2012, but was postponed by the plaintiff and has not yet been rescheduled.
The Company is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount
or range of potential loss, if any, from this legal proceeding.
F-
49
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
In August 2011, the estate of
Antonio Perri, the late father of Ms. Perri, commenced an action against Generex Pharmaceuticals, Inc., the law firm of Brans,
Lehun, Baldwin LLP and William Lehun in the Ontario Superior Court of Justice claiming that the estate is entitled to the proceeds
of sale (approximately $1,730,000) received by the Company on its sale of two properties to Golden Bull Estates Ltd., a company
controlled by Ms. Perri. The suit alleges that no consideration was received when the Company purchased the two properties from
Antonio Perri in 1998. The Company has responded to this statement of claim and intends to defend this action vigorously. The
Company is not able to predict the ultimate outcome of this legal proceeding at the present time or to estimate an amount or range
of potential loss, if any, from this legal proceeding.
In December 2011, a vendor of
the Company's commenced an action against the Company and its subsidiary, Generex Pharmaceuticals, Inc., in the Ontario
Superior Court of Justice claiming damages for unpaid invoices including interest in the amount of $429,000, in addition to costs
and further interest. The Company has responded to this statement of claim and intends to defend this action vigorously. The Company
has also asserted a counterclaim in the proceeding for $200,000 arising from the vendor's breach of contract and detinue,
together with interest and costs. A hearing for the vendor's motion for summary judgment is scheduled for November 15, 2012. 
The Company will be responding to the motion. The Company is not able to predict the ultimate outcome of this legal proceeding
at the present time or to estimate an amount or range of potential loss, if any, from this legal proceeding.
The Company is involved in certain
other legal proceedings in addition to those specifically described herein. Subject to the uncertainty inherent in all litigation,
the Company does not believe at the present time that the resolution of any of these legal proceedings is likely to have a material
adverse effect on the Company's consolidated financial position, operations or cash flows.
With respect to all litigation,
as additional information concerning the estimates used by the Company becomes known, the Company reassesses its position both
with respect to accrued liabilities and other potential exposures.
8.
Commitments
On
December 7, 2009, the Company entered into a long-term agreement with sanofi-aventis Deutschland GmbH ("sanofi").
Under this agreement, sanofi-aventis will manufacture and supply recombinant human insulin to the Company in the territories specified
in the agreement. Through this agreement, the Company will procure recombinant human insulin crystals for use in the production
of Generex Oral-lyn™. The terms of the supply agreement require the Company to make certain minimum purchases of insulin
from sanofi through the period ended December 31, 2011.
To date,
the Company has not met the minimum purchase commitments under this agreement. After December 31, 2011, sanofi may terminate the
agreement due to the Company's failure to meet such purchase commitments. Upon termination, the Company would be obligated
to pay sanofi for all materials and components that it has acquired or ordered to manufacture insulin based on the Company's
forecasts or minimum purchase commitments, all related work-in-progress (at cost) and all finished insulin in inventory. To date,
the Company has not provided forecasts to sanofi for the purchase of insulin and sanofi has not terminated the agreement.
9.
Net (Loss)/Income Per
                                                                       Share ("EPS")
Basic earnings per share ("EPS")
and Diluted EPS for the three-month period ended April 30, 2012 have been computed by dividing the net income available to common
stockholders for the period by the weighted average shares outstanding and the diluted weighted average shares outstanding during
that period, respectively. Per the treasury method of calculating Diluted EPS, 4,076 shares representing outstanding stock options
which have an exercise price lower than the average market price for the quarter ended April 30, 2012 are included in the calculation
of EPS. All remaining outstanding stock options and warrants which have out-of-the-money exercise prices and common stock underlying
convertible preferred stock, representing 95,111,892 incremental shares in aggregate, have been excluded from the April 30, 2012
computation of Diluted EPS, as they are anti-dilutive.
Basic EPS and Diluted EPS for
the nine-month period ended April 30, 2012 and for the three- and nine-month periods ended April 30, 2011 have been computed by
dividing the net loss available to common stockholders for the period by the weighted average shares outstanding during that period.
All outstanding stock options, non-vested restricted stock, warrants and common stock underlying convertible preferred stock,
representing 95,115,968 incremental shares at April 30, 2012 and 65,084,765 incremental shares at April 30, 2011, have been excluded
from the respective computations of Diluted EPS as they are anti-dilutive, due to the losses generated during those periods.
F-
50
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
10.
Stockholders'
                                                                        Deficiency
Common Stock
During the nine months ended
April 30, 2012, the Company issued or committed to issue 4,618,390 shares of common stock to various consultants for services
rendered in the amount of $606,545. The shares were valued at $0.09 to $0.17 per share based on the quoted market price of the
Company's common stock on the dates of the issuances.
During the nine months ended
April 30, 2012, the Company issued or committed to issue 494,626 shares of common stock valued at $68,483 as employee compensation.
The shares were valued at $0.09 to $0.15 per share based on the quoted market price of the Company's common stock on the
dates of the issuances.
During the nine months ended
April 30, 2012, the Company issued 20,459,431 shares of common stock in conjunction with a cashless exercise of 49,663,260 warrants.
During the nine months ended
April 30, 2012, the Company received aggregate cash proceeds of $30,000 from exercises of warrants at $0.15 per share.  The
Company issued 200,000 shares of common stock as a result of these exercises.
Stock option expense related
to executive and employee options granted in October 2009, resulting in a charge to operations during the nine-month period ended
April 30, 2012 of $56,961.
During the nine months ended
April 30, 2012, the Company issued 8,580,002 shares of common stock in conjunction with the conversion of 1,287 shares of Series
A 9% Convertible Preferred Stock and 3,806,583 shares of common stock as dividend on Series A 9% Convertible Preferred Stock.
During the nine months ended
April 30, 2012, the Company recognized an increase in equity of $841,333 related to the partial exercise of the additional investment
rights related to the Company's July 2011 convertible preferred stock financing.
The stockholders' deficiency
transactions as described above are summarized below:
Additional
Change to
Common Stock
Paid-In
Stockholders'
Shares
Amount
Capital
Equity
Issuance of common stock on conversion
    of convertible preferred stock
8,580,002
$
8,580
$
(8,580
)
$
—
Issuance of common stock as dividend on convertible
    preferred stock
3,806,583
3,807
343,683
347,490
Issuance of common stock for services
4,618,390
4,618
601,927
606,545
Issuance of common stock in conjunction with cashless
    exercise of warrants
20,459,431
20,459
7,210,274
7,230,733
Warrants exercised for cash
200,000
200
29,800
30,000
Exercise of additional investment rights
—
—
841,333
841,333
Issuance of common stock as employee compensation
494,626
495
67,989
68,484
Amortization of stock options
    as employee compensation
—
—
56,961
56,961
Total
38,159,032
$
38,159
$
9,143,387
$
9,181,546
Warrants
The following is a summary of
warrants issued, forfeited or expired and exercised for the nine months ended April 30, 2012:
Warrants
Outstanding, August 1, 2011
99,955,190
Issued
24,777,773
Forfeited or expired
(100,000
)
Exercised
(49,863,260
)
Outstanding, April 30, 2012
74,769,703
F-
51
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The outstanding warrants at April
30, 2012 have a weighted average exercise price of $0.33 per share and have a weighted average remaining life of 3.78 years.
As of April 30, 2012, the Company
has 4,000,000 warrants with a current exercise price of $0.15 and an expiry date of January 16, 2016, 29,027,322 warrants with
a current exercise price of $0.15 and an expiry date of March 31, 2016, 3,333,331 warrants with a current exercise price of $0.15
and an expiry date of July 11, 2016, 5,454,544 warrants with a current exercise price of $0.15 and an expiry date of September
30, 2016 and 13,333,333 warrants with a current exercise price of $0.15 and an expiry date of February 2, 2017 (55,148,530 warrants
in total), which have price protection provisions that allow for the reduction in the current exercise price upon the occurrence
of certain events, including the Company's issuance of common stock or securities convertible into or exercisable for common
stock, such as options and warrants, at a price per share less than the exercise price then in effect. For instance, if the Company
issues shares of its common stock or options exercisable for or securities convertible into common stock at an effective price
per share of common stock less than the exercise price then in effect, the exercise price will be reduced to the effective price
of the new issuance. Simultaneously with any reduction to the exercise price, the number of shares of common stock that may be
purchased upon exercise of each of these warrants shall be increased proportionately, so that after such adjustment the aggregate
exercise price payable for the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately
prior to such adjustment.
The Company's issuance
of the following securities will not trigger the price protection provisions of the warrants described above that were issued
in connection with the March 2008 private placement: (a) shares of common stock or standard options to the Company's directors,
officers, employees or consultants pursuant to a board-approved equity compensation program or other contract or arrangement (up
to an aggregate amount of 5,608,926, representing 5% of the common stock issued and outstanding immediately prior to March 31,
2008); (b) shares of common stock issued upon the conversion or exercise of any security, right or other instrument convertible
or exchangeable into common stock (or securities exchangeable into common stock) issued prior to March 31, 2008; (c) the shares
of common stock issued upon exercise of the warrants issued in March 2008; and (d) shares of common stock and warrants in connection
with strategic alliances, acquisitions, mergers, and strategic partnerships, the primary purpose of which is not to raise capital,
and which are approved in good faith by the Company's board of directors (up to an aggregate number of 11,217,852, representing
10% of the shares of common stock issued and outstanding immediately prior to March 31, 2008). On July 8, 2011, the Company's
issuance of common stock triggered the price protection features of the warrants that were issued in March 2008 resulting in a
decrease of the exercise price from $0.25 to $0.15 per share and an increase in the number of warrants from 21,784,410 to 36,307,350.
The Company's issuance
of the following securities will not trigger the price protection provisions of the warrants issued on January 25, 2011 and in
March and April 2011: (I) (a) shares of common stock or options to employees, officers, or directors of the Company pursuant to
plans approved by a majority of the non-employee directors of the Company or pursuant to independent contractors pursuant to other
agreements or arrangements in existence as of January 24, 2011, (b) securities issued upon the exercise or exchange of or conversion
of any securities issued under the Securities Purchase Agreement dated January 24, 2011 and/or other securities exercisable or
exchangeable for or convertible into shares of common stock issued and outstanding on January 24, 2011, provided that such securities
have not been amended since their issue date through the date of conversion, exercise or exchange to increase the number of such
securities or to decrease the exercise price, exchange price or conversion price of such securities (except certain adjustments
to warrants expiring in March 2016 and September 2016 are not prohibited), and (c) shares of common stock or warrants to trade
vendors of the Company approved by a majority of the non-employee members of the Board of Directors; provided that (II) (i) the
shares issued under paragraphs I(a) and I(c) shall not, in the aggregate exceed 1,500,000 shares in each 30-day period during
the first 90 days after January 24, 2011, (ii) there is a reasonable relationship between the value of the common stock or options
issued pursuant to paragraphs I(a) and I(c) and the value of services rendered or goods provided and (iii) the Company does not
rely in whole or in part on the exemptions provided in Sections 3(a)(9) or 3(a)(10) of the Securities Act. On July 8, 2011, the
Company's issuance of common stock triggered the price protection features of the warrants that were issued on January 25,
2011 and in March and April 2011 resulting in a decrease of the exercise price from $0.25 to $0.15 per share and an increase in
the number of warrants from 16,056,000 to 26,760,001.
F-
52
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The Company's issuance
of the following securities will not trigger the price protection provisions of the warrants issued on July 8, 2011: (I)(a) shares
of common stock or options to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted
for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee
of non-employee directors established for such purpose, (b) shares of common stock issued to the vendors identified in Securities
Purchase Agreement dated July 8, 2011, in the periodic amounts set forth therein, (c) securities upon the exercise or exchange
of or conversion of any Securities issued under the Securities Purchase Agreement dated July 8, 2011 and/or other securities exercisable
or exchangeable for or convertible into shares of common stock issued and outstanding on July 8, 2011, provided that such securities
have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price,
exchange price or conversion price of such securities, and (d) securities issued pursuant to acquisitions or strategic transactions
approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a person
(or to the equityholders of a person) which is, itself or through its subsidiaries, an operating company or an owner of an asset
in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to
the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in securities. On February 1, 2012, the triggering of the
price protection features of the warrants that were issued in July 2011 resulted in a decrease of the exercise price from $0.25
to $0.15 per share and an increase in the number of warrants from 17,166,666 to 28,611,106.
The Company's issuance
of the following securities will not trigger the price protection provisions of the warrants issued on February 2, 2012: (I)(a)
shares of common stock or options to employees, officers or directors of the Company pursuant to any stock or option plan duly
adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of
a committee of non-employee directors established for such purpose, (b) shares of common stock issued to the vendors identified
in Securities Purchase Agreement dated January 31, 2012, in the periodic amounts set forth therein, (c) securities upon the exercise
or exchange of or conversion of any Securities issued under the Securities Purchase Agreements dated July 8, 2011 and January
31, 2012 and/or other securities exercisable or exchangeable for or convertible into shares of common stock issued and outstanding
on February 2, 2012, provided that such securities have not been amended since the date of this Agreement to increase the number
of such securities or to decrease the exercise price, exchange price or conversion price of such securities, and (d) securities
issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company,
provided that any such issuance shall only be to a person (or to the equityholders of a person) which is, itself or through its
subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall
provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which
the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing
in securities.
The Company accounts for the
warrants with price protection provisions in accordance with FASB ASC Topic 815 as described in
Note 11 - Derivative Liabilities
below. As of April 30, 2012, there were a total of 55,148,530 warrants with an estimated fair value of $4,603,470, which are
identified on the consolidated balance sheet under the caption "Derivative Warrant Liability".
Series A 9% Convertible Preferred
Stock
The Company has authorized 5,500
shares of Series A 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities
purchase agreement dated July 8, 2011, the Company sold an aggregate of 2,575 shares of convertible preferred stock, as well as
accompanying warrants to purchase 17,166,666 shares of common stocks. An aggregate of 17,166,666 shares of the Company's
common stock were issuable upon conversion of the convertible preferred stock which was issued at the initial closing.
Subject to certain ownership
limitations, the convertible preferred stock is convertible at the option of the holder at any time into shares of the Company's
common stock at an effective conversion price of $0.15 per share, and will accrue a 9% dividend until July 8, 2014 and, beginning
on July 8, 2014 and on each one year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend
is payable quarterly on September 30, December 31, March 31 and June 30, beginning on September 30, 2011 and on each conversion
date in cash, or at the Company's option, in shares of common stock. In the event that the convertible preferred stock is
converted prior to July 8, 2014, the Company will pay the holder of the converted preferred stock an amount equal to $270 per
$1,000 of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid on such converted
preferred stock before the relevant conversion date. Such "make-whole payment" may be made in cash or, at the Company's
option, in shares of its common stock. In addition, beginning July 8, 2014, the Company will pay dividends on shares of preferred
stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than dividends in the form
of common stock) actually paid on shares of the common stock when, and if such dividends are paid. The Company will incur a late
fee of 18% per annum on unpaid dividends.
F-
53
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The conversion price of the convertible
preferred stock is subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization
transactions and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if the Company
sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective
price per share that is lower than the then conversion price, except in the event of certain exempt issuances. In addition, the
holders of convertible preferred stock will be entitled to receive any securities or rights to acquire securities or property
granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had converted
all of their shares of convertible preferred stock. In the event of a fundamental transaction, such as a merger, consolidation,
sale of substantially all assets and similar reorganizations or recapitalizations, the holders of convertible preferred stock
will be entitled to receive, upon conversion of their shares, any securities or other consideration received by the holders of
the Company's common stock pursuant to the fundamental transaction.
The Company may become obligated
to redeem the convertible preferred stock in cash upon the occurrence of certain triggering events, including the failure to provide
an effective registration statement covering shares of common stock issuable upon conversion of the convertible preferred stock,
material breach of certain contractual obligations to the holders of the convertible preferred stock, the occurrence of a change
in control of the Company, the occurrence of certain insolvency events relating to the Company, or the failure of the Company's
common stock to continue to be listed or quoted for trading on one or more specified United States securities exchanges or regulated
quotation service. Upon the occurrence of certain triggering events, each holder of convertible preferred stock will have the
option to redeem such holder's shares of convertible preferred stock for a redemption price payable in shares of common
stock or receive an increased dividend rate of 18% on all of such holder's outstanding convertible preferred stock.
In conjunction with the issuance
of the Series A convertible preferred stock, the Company also issued 17,166,666 warrants to the investors. Subject to certain
ownership limitations, the warrants will be exercisable at any time after their date of issuance and on or before the fifth-year
anniversary thereafter at an exercise price of $0.15 per share of common stock. The exercise price of the warrants and, in some
cases, the number of shares issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends, combinations
of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The exercise price
and number of shares of common stock issuable upon exercise will also be adjusted if the Company sells or grants any shares of
common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant holders will be entitled
to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders
of its common stock to the same extent as if such holders had exercised all of their warrants. In the event of a fundamental transaction,
such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the warrant
holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received by the holders
of the Company's common stock pursuant to the fundamental transaction. These warrants have been classified as derivative
liabilities and are described further in
Note 11 – Derivative Liabilities
.
In addition, until the first
anniversary of date of the securities purchase agreement, each investor may, in its sole determination, elect to purchase, severally
and not jointly with the other investors, in one or more purchases, in the ratio of such investor's original subscription amount
to the original aggregate subscription amount of all investors, additional units consisting of convertible preferred stock and
warrants at a purchase price of $1,000 per unit with an aggregate subscription amount thereof of up to $2,575,000, which units
will have terms identical to the units of convertible preferred stock and warrants issued in connection with the July 2011 closing.
These additional investment rights of the investors have been classified as derivative liabilities and are described further in
Note 11 – Derivative Liabilities
.
On February 2, 2012, the investors exercised $2,000,000 of the additional
investment rights in the Series B 9% Convertible Preferred Stock financing described below.
As of April 30, 2012, 17,166,666
shares of common stock had been issued upon the conversion of 2,575 shares of Series A convertible preferred stock and 6,129,666
shares of common stock were issued as "make whole payments" on such conversions of the convertible preferred stock.
As of April 30, 2012, all of the Series A 9% Convertible Preferred Stock had been converted. At July 31, 2011, there were 1,287
shares of Series A convertible preferred stock outstanding which were discounted at 100% of their face value of $1,287,000 and
were classified in equity on the consolidated balance sheet under the caption "Series A 9% Convertible Preferred Stock".
At July 31, 2011, the "make whole payments" on the remaining Series A convertible preferred stock in the amount of
$347,490 are included in Accounts Payable and Accrued Expenses (see Note 6). The total make whole payments at the date of issuance,
in the amount of $695,250, were accrued on the issuance date, with such amount allocated as described directly below, when accounting
for the initial proceeds from the convertible preferred stock financing. The September 30, 2011 quarterly dividend payment of
$12,383, as pro-rated for the period from July 8, to September 30, 2011, was paid in shares of the Company's common stock.
There was no dividend payment on December 31, 2011, as all of the Series A convertible preferred stock had been converted prior
to that date.
F-
54
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Series B 9% Convertible Preferred
Stock
The Company has authorized 2,000
shares of Series B 9% Convertible Preferred Stock with a stated value of one thousand ($1,000) per share. Pursuant to a securities
purchase agreement dated January 31, 2012, the Company sold an aggregate of 2,000 shares of Series B convertible preferred stock,
as well as accompanying warrants to purchase 13,333,333 shares of common stocks. An aggregate of 13,333,333 shares of the Company's
common stock were issuable upon conversion of the Series B convertible preferred stock which was issued at the initial closing.
Subject to certain ownership
limitations, the convertible preferred stock is convertible at the option of the holder at any time into shares of the Company's
common stock at an effective conversion price of $0.15 per share, and will accrue a 9% dividend until February 1, 2015 and, beginning
on February 2, 2015 and on each one year anniversary thereafter, such dividend rate will increase by an additional 3%. The dividend
is payable quarterly on September 30, December 31, March 31 and June 30, beginning on March 31, 2012 and on each conversion date
in cash, or at the Company's option, in shares of common stock. In the event that the convertible preferred stock is converted
prior to February 1, 2015, the Company will pay the holder of the converted preferred stock an amount equal to $270 per $1,000
of stated value of the convertible preferred stock, less the amount of all prior quarterly dividends paid on such converted preferred
stock before the relevant conversion date. Such "make-whole payment" may be made in cash or, at the Company's
option, in shares of its common stock. In addition, beginning February 1, 2015, the Company will pay dividends on shares of preferred
stock equal to (on an as-if-converted-to-common-stock basis) and in the same form as dividends (other than dividends in the form
of common stock) actually paid on shares of the common stock when, and if such dividends are paid. The Company will incur a late
fee of 18% per annum on unpaid dividends.
The conversion price of the convertible
preferred stock is subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization
transactions and certain pro-rata distributions to common stockholders. The conversion price will also be adjusted if the Company
sells or grants any shares of common stock or securities convertible into, or rights to acquire, common stock at an effective
price per share that is lower than the then conversion price, except in the event of certain exempt issuances. In addition, the
holders of convertible preferred stock will be entitled to receive any securities or rights to acquire securities or property
granted or issued by the Company pro rata to the holders of its common stock to the same extent as if such holders had converted
all of their shares of convertible preferred stock. In the event of a fundamental transaction, such as a merger, consolidation,
sale of substantially all assets and similar reorganizations or recapitalizations, the holders of convertible preferred stock
will be entitled to receive, upon conversion of their shares, any securities or other consideration received by the holders of
the Company's common stock pursuant to the fundamental transaction.
The Company may become obligated
to redeem the convertible preferred stock in cash upon the occurrence of certain triggering events, including the failure to provide
an effective registration statement covering shares of common stock issuable upon conversion of the convertible preferred stock,
material breach of certain contractual obligations to the holders of the convertible preferred stock, the occurrence of a change
in control of the Company, the occurrence of certain insolvency events relating to the Company, or the failure of the Company's
common stock to continue to be listed or quoted for trading on one or more specified United States securities exchanges or regulated
quotation service. Upon the occurrence of certain triggering events, each holder of convertible preferred stock will have the
option to redeem such holder's shares of convertible preferred stock for a redemption price payable in shares of common
stock or receive an increased dividend rate of 18% on all of such holder's outstanding convertible preferred stock.
In conjunction with the issuance
of the Series B convertible preferred stock, the Company also issued 13,333,333 warrants to the investors. Subject to certain
ownership limitations, the warrants will be exercisable at any time after their date of issuance and on or before the fifth-year
anniversary thereafter at an exercise price of $0.15 per share of common stock. The exercise price of the warrants and, in some
cases, the number of shares issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends, combinations
of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders. The exercise price
and number of shares of common stock issuable upon exercise will also be adjusted if the Company sells or grants any shares of
common stock or securities convertible into, or rights to acquire, common stock at an effective price per share that is lower
than the then exercise price, except in the event of certain exempt issuances. In addition, the warrant holders will be entitled
to receive any securities or rights to acquire securities or property granted or issued by the Company pro rata to the holders
of its common stock to the same extent as if such holders had exercised all of their warrants. In the event of a fundamental transaction,
such as a merger, consolidation, sale of substantially all assets and similar reorganizations or recapitalizations, the warrant
holders will be entitled to receive, upon exercise of their warrants, any securities or other consideration received by the holders
of the Company's common stock pursuant to the fundamental transaction. These warrants have been classified as derivative
liabilities and are described further in
Note 11 – Derivative Liabilities
.
As of April 30, 2012, none of
the Series B convertible preferred stock had been converted to common stock. The make whole payments at the date of issuance,
in the amount of $540,000, were accrued on the issuance date and are included in Accounts Payable and Accrued Expenses (see Note
6). The "make whole" amount was allocated as described directly below, when accounting for the initial proceeds from
the Series B convertible preferred stock financing.
F-
55
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Accounting for proceeds from
the Series A convertible preferred stock financing
The net cash proceeds from the
Series A convertible preferred stock financing were $2,315,000. The proceeds from the financing were allocated first to the warrants
that were issued in the financing, second to the additional investment rights associated with the financing and third to the make
whole payments. As the assigned fair values were greater than the net cash proceeds from the transaction, the excess was treated
as a "deemed dividend" for accounting purposes and is reported on the Company's consolidated statement of operations
for the year ended July 31, 2011 under the caption "Preferred Stock Dividend". The calculation methodologies for the
fair values of the derivative warrant liability and the derivative additional investment rights liability are described in
Note
11 – Derivative Liabilities
below. The fair values assigned to each component and the calculation of the amount of the
deemed dividend are as follows:
Accounting allocation of initial
    proceeds
Net proceeds
$
2,315,000
Derivative warrant liability fair value
(1,871,167
)
Derivative additional investment rights fair value
(515,000
)
Make whole payments liability
(695,250
)
Deemed dividend
$
(766,417
)
Accounting for proceeds from
the Series B convertible preferred stock financing
The net cash proceeds from the
Series B convertible preferred stock financing were $1,975,000. The proceeds from the financing were allocated first to the warrants
that were issued in the financing and second to the make whole payments. As the assigned fair values were greater than the net
cash proceeds from the transaction, the excess was treated as a "deemed dividend" for accounting purposes and is reported
on the Company's consolidated statements of operations for the three and nine-month periods ended April 30, 2012 under the
caption "Preferred Stock Dividend". The calculation methodologies for the fair values of the derivative warrant liability
and the derivative additional investment rights liability are described in
Note 11 – Derivative Liabilities
below.
The fair values assigned to each component and the calculation of the amount of the deemed dividend are as follows:
Accounting allocation of initial
    proceeds
Net proceeds
$
1,975,000
Derivative warrant liability fair value
(1,811,746
)
Make whole payments liability
(540,000
)
Deemed dividend
$
(376,
                                                                               746)
11.
Derivative Liabilities
Derivative warrant liability
The Company has warrants outstanding
with price protection provisions that allow for the reduction in the exercise price of the warrants in the event the Company subsequently
issues stock or securities convertible into stock at a price lower than the exercise price of the warrants. Simultaneously with
any reduction to the exercise price, the number of shares of common stock that may be purchased upon exercise of each of these
warrants shall be increased or decreased proportionately, so that after such adjustment the aggregate exercise price payable for
the adjusted number of warrants shall be the same as the aggregate exercise price in effect immediately prior to such adjustment.
Accounting for Derivative
Warrant Liability
The Company's derivative
warrant instruments have been measured at fair value at April 30, 2012 and July 31, 2011 using the binomial lattice model. The
Company recognizes all of its warrants with price protection in its consolidated balance sheets as a liability. The liability
is revalued at each reporting period and changes in fair value are recognized currently in the consolidated statements of operations.
The initial recognition and subsequent changes in fair value of the derivative warrant liability have no effect on the Company's
consolidated cash flows.
F-
56
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The derivative warrants outstanding
at April 30, 2012 are all currently exercisable with a weighted-average remaining life of 4.2 years.
The revaluation of the warrants
at each reporting period, as well as the charges associated with issuing additional warrants due to the price protection features,
resulted in the recognition of loss of $1,276,950 within the Company's consolidated statements of operations for the nine
months ended April 30, 2012 and income of $1,993,920 for the nine months ended April 30, 2011, which is included in the total
under the caption "Change in fair value of derivative liabilities". The fair value of the warrants at April 30, 2012
and July 31, 2011 was $4,603,470 and $8,745,508, respectively, which is reported on the consolidated balance sheets under the
caption "Derivative Warrant Liability". The following summarizes the changes in the value of the derivative warrant
liability from August 1, 2010 until April 30, 2012:
Value
No. of Warrants
Balance at August 1, 2010 – Derivative warrant liability
$
5,679,721
16,503,340
Additional warrants issued in January to April 2011 financings
3,415,536
16,056,000
Additional warrants issued in July 2011 financing
1,871,167
17,166,666
Additional warrants from price protection features of existing warrants
3,867,678
30,508,011
Decrease in fair value of derivative warrant liability
(6,088,594
)
n/a
Balance at July 31, 2011 – Derivative warrant liability
8,745,508
80,234,017
Exercise of warrants classified as derivative liability
(7,230,734
)
(49,863,260
)
Additional warrants issued in February 2012 financing
1,811,746
13,333,333
Additional warrants from price protection features of existing warrants
1,548,813
11,444,440
Decrease in fair value of derivative warrant liability
(271,863
)
n/a
Balance at April 30, 2012 – Derivative warrant liability
$
4,603,470
55,148,530
Fair Value Assumptions Used
in Accounting for Derivative Warrant Liability
The Company has determined its
derivative warrant liability to be a Level 2 fair value measurement and has used the binominal lattice pricing model to calculate
the fair value as of April 30, 2012 and July 31, 2011. The binomial lattice model requires six basic data inputs: the exercise
or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock
price in the future, and the dividend rate. Because the warrants contain the price protection feature, the probability that the
exercise price of the warrants would decrease as the stock price decreased was incorporated into the valuation calculations. The
key inputs used in the April 30, 2012 and July 31, 2011 fair value calculations were as follows:
April 30, 2012
July 31, 2011
Current exercise price
$
0.15
$0.15 and $0.25
Time to expiration
4.2 years
4.7 years
Risk-free interest rate
0.60
%
1.23
%
Estimated volatility
106
%
108
%
Dividend
-0-
-0-
Stock price at period end date
$
0.102
$
0.13
Derivative additional investment
rights liability
The benefit received by the participants
in the July 2011 Series A 9% Convertible Preferred Stock transaction (see Note 10) in respect to the right to make an additional
investment with the same terms as the July 2011 transaction was determined to be an embedded derivative instrument and has been
measured at fair value using the binomial lattice model. The liability will be revalued at each subsequent reporting period prior
to its expiry in July 2012 and any changes in fair value will be recognized in the consolidated statements of operations. The
initial recognition and subsequent changes in fair value of the derivative additional investment rights liability have no effect
on the Company's cash flows.
Fair Value Assumptions Used
in Accounting for Derivative Additional Investment Rights Liability
The Company has determined the
derivative additional investment rights liability to be a Level 2 fair value measurement and has used the binominal lattice pricing
model
to measure the fair value. The fair value of the derivative liability associated with the additional
investment rights was determined to be $515,000 at July 31, 2011 and $437 at April 30, 2012.
The key inputs used in the
fair value calculations were as follows:
F-
57
GENEREX BIOTECHNOLOGY CORPORATION AND
SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
April 30, 2012
July 31, 2011
Underlying number of units of convertible preferred stock
575
2,575
Underlying number of warrants
3,833,333
17,166,667
Current exercise price of warrants
$
0.15
$
0.25
Current conversion price of preferred stock
$
0.15
$
0.15
Time to expiration
0.19 years
1.0 years
Risk-free interest rate
0.09
%
1.23
%
Estimated volatility
37
%
58
%
Dividend
-0-
-0-
Stock price
$
0.102
$
0.13
The revaluation of the additional
investment rights at the April 30, 2012 reporting period, resulted in the recognition of a gain of $326,770 within the Company's
consolidated statements of operations for the nine months ended April 30, 2012, which is included in the total under the caption
"Change in fair value of derivative liabilities". In addition, $841,333 was transferred to equity, as a result of
the partial exercise of the additional investment rights in the nine months ended April 30, 2012.
12.
Other Current Assets
Other current assets consist of
the following:
April 30, 2012
July 31, 2011
Mortgage loan origination fees
$
102,895
$
—
Prepaid insurance, deposits and taxes
193,395
225,052
Total
$
296,290
$
225,052
The mortgage loan origination
fees include legal and other lender fees related to the mortgage loan financing which closed on January 19, 2012, which have been
capitalized and are being amortized over the twelve month term of the loan to January 18, 2013.
13.
Income from Assets
                                                                        Held for Investment, net
In March and April, 2012, the
Company sold nine commercial condominium units which were held for investment for gross proceeds after real estate commissions
of $2,865,682. These properties had a net book value of $1,783,932, resulting in an accounting gain of $1,081,750 which is included
in income from assets held for investment, net on the consolidated statement of operations. The net proceeds after commissions
and other expenses were used to discharge or partially discharge the first and second mortgages on the properties. There were
two first mortgages on the properties, with combined remaining principals of CAD$568,836, which were discharged completely upon
sale. The remaining net proceeds of CAD$2,180,051 after expenses and the discharge of the first mortgages was used to partially
discharge the second mortgage and the Company did not receive any of the net proceeds from these property sales.
In August 2011, the Company sold
two properties which were held for investment for gross proceeds after real estate commissions of $1,669,115. These two properties
had a net book value of $1,029,435, resulting in an accounting gain of $639,680 which is included in income from assets held for
investment, net on the consolidated statement of operations. The two properties had mortgages of $659,288 which were discharged
upon sale, resulting in net cash proceeds to the Company of $1,009,827.
The remaining income of $207,420
in this category in the nine months ended April 30, 2012, pertains to rental income from properties held for investment, net of
carrying and operating expenses, compared to $236,732 in the prior year period.
14.
Subsequent Events
The Company has evaluated subsequent events occurring
after the balance sheet date through the date the interim consolidated financial statements were issued.
F-
58
Resale of 88,121,621 Shares of Common
Stock
PROSPECTUS
__________, 2012
You should rely only on the information contained in this
prospectus. No dealer, salesperson or other person is authorized to give information that is not contained in this prospectus.
This prospectus is not an offer to sell nor is it seeking an offer to buy these securities in any jurisdiction where the offer
or sale is not permitted. The information contained in this prospectus is correct only as of the date of this prospectus, regardless
of the time of the delivery of this prospectus or the sale of these securities.
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following table sets forth all costs
and expenses to be incurred by Generex in connection with the preparation and filing of this Registration Statement. All amounts
shown are estimates except for the SEC registration fee. We will pay all expenses in connection with the distribution of the shares
of common stock being registered hereby, except for the fees and expenses of any counsel and other advisors that any Selling Security
Holders may employ to represent them in connection with the offering and any brokerage or underwriting discounts or commissions
paid to broker-dealers in connection with the sale of the shares.
SEC Registration Fee
$
712
Printing and Engraving Expenses
$
7,500
Accountants' Fees and Expenses
$
10,000
Legal Fees and Expenses
$
20,000
Miscellaneous
$
1,788
Total Expenses
$
40,000
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
General Corporation Law of Delaware
Section 145 of the Delaware General Corporation
Law authorizes a corporation to indemnify its directors, officers, employees or other agents in terms sufficiently broad to permit
indemnification (including reimbursement for expenses incurred) under certain circumstances for liabilities arising under the Securities
Act. Our Amended and Restated By-Laws provide indemnification of our directors and officers to the maximum extent permitted by
the Delaware General Corporation Law.
By-Laws
Article V of our Amended and Restated By-Laws
provides that Generex shall indemnify any person who was or is a party or threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (collectively, a "proceeding"),
by reason of the fact such person is or was (a) a director or executive officer of Generex or a constituent corporation absorbed
in a consolidation or merger (hereinafter, a "constituent corporation"), or, (b) is or was serving at the request of
Generex or a constituent corporation as a director, officer, partner, employee or agent of another corporation, partnership, joint
venture or other enterprise or entity, or (c) is or was a director or officer of Generex serving at its request as an administrator,
trustee or other fiduciary of one or more of the employee benefit plans, if any, of Generex or another entity which may be in effect
from time to time, against all expenses, liability and loss actually and reasonably incurred or suffered by such person in connection
with such proceeding, whether or not the indemnified liability arises or arose from any proceeding by or in the right of Generex,
to the extent that such person is not otherwise indemnified and to the extent that such indemnification is not prohibited by law
as it presently exists or may hereafter be amended. We shall advance all expenses reasonably incurred by a person entitled to indemnification
as provided above in defending a proceeding in advance of the final disposition of such proceeding, and may, but shall not be obligated
to, advance expenses of other persons entitled to indemnification pursuant to any other agreement or provision of law. To determine
whether any indemnification under Article V of our Amended and Restated By-Laws is permissible, our Board of Directors by a majority
vote of a quorum consisting of directors not parties to such proceeding may, and on request of a person seeking indemnification
shall be required to, determine in each case whether the applicable standards in any applicable statute have been met, or such
determination shall be made by independent legal counsel if such quorum is not obtainable, or, even if obtainable, a majority vote
of a quorum of disinterested directors so directs. If a claim for indemnification under Article V of our Amended and Restated By-Laws
is not paid in full within ninety (90) days after a written claim therefore has been received by us, the claimant may file suit
to recover the unpaid amount of such claim, and we shall have the burden of proving that the claimant was not entitled to the requested
indemnification under applicable law. The reasonable expenses of any person in prosecuting a successful claim for indemnification
thereunder, and the fees and expenses of any independent legal counsel engaged to determine permissibility of indemnification,
shall be borne by us. For purposes of Article V of our Amended and Restated By-Laws, "independent legal counsel" means
legal counsel other than that regularly or customarily engaged by or on behalf of Generex. Notwithstanding any other provision
of Article V, we shall be required to indemnify a person in connection with a proceeding initiated by such person only if the proceeding
was authorized by the Board of Directors.
II-
2
Article V of our Amended and Restated By-Laws
further provides that indemnification provided therein shall not be deemed exclusive of any other right to which one seeking indemnification
may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, the By-Laws, agreement, vote of
stockholders or disinterested directors or otherwise, and shall inure to the benefit of the heirs, executors and administrators
of any such person. Any modification or repeal of any provision of Article V of our Amended and Restated By-Laws shall not adversely
affect any right or protection of an authorized representative existing thereunder with respect to any act or omission occurring
prior to such modification or repeal.
Pursuant to Article V of our Amended and
Restated By-Laws, our Board of Directors has the power to (i) authorize the company to purchase and maintain, at the company's
expenses, insurance on behalf of the company and on behalf of others to the extent that power to do so has not been prohibited
by applicable law, and (ii) give other indemnification to the extent not prohibited by applicable law. We currently maintain insurance
under which the insurers will reimburse us for amounts that it has paid to its directors and officers as indemnification for claims
against such persons in their official capacities. The insurance also covers such persons as to amounts paid by them as a result
of claims against them in their official capacities that are not reimbursed by us. The insurance is subject to certain limitations
and exclusions.
Item 15. Recent Sales of Unregistered Securities
Date of Sale
Title of Security
Amount of
Securities Sold
Aggregate Consideration
Exemption
Under the
Securities Act
Purchaser/Recipient
Nature of Purchase/Recipient
Terms of
Conversion
or Exercise
Aug 2009
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Aug 2009
Common Stock
100,000
Services per contract
Section 4 (2) *
Ventures and Projects Management Inc.
Investor relations
Sep 2009
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Sep 2009
Common Stock
83,335
$60,126
Section 4 (2) *
The Investor Relations Group, Inc.
Investor relations
Sep 2009
Common Stock
200,000
Services per contract
Section 4 (2) *
Ventures and Projects Management Inc.
Investor relations
Sep 2009
Common Stock
200,000
Services per contract
Section 4 (2) *
Ventures and Projects Management Inc.
Investor relations
Oct 2009
Common Stock
250,000
Services per contract
Section 4 (2) *
Oceanus Capital LLC
Investor relations
Oct 2009
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Oct 2009
Common Stock
15,000
Monthly services per contract
Section 4 (2) *
Forman Foresight LLC
Investor relations
Oct 2009
Common Stock
37,500
Quarterly services per contract
Section 4 (2) *
The Abajian Group, LLC
Consultant
Oct 2009
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Nov 2009
Common Stock
39,144
$24,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Nov 2009
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Nov 2009
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Dec 2009
Common Stock
10,000
Monthly services per contract
Section 4 (2) *
Forman Foresight LLC
Investor relations
Dec 2009
Common Stock
39,000
Services per contract
Section 4 (2) *
Luxury Air Jets Inc.
Investor relations
Dec 2009
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Dec 2009
Common Stock
10,565
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Dec 2009
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Jan 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Jan 2010
Common Stock
5,000
Monthly services per contract
Section 4 (2) *
Forman Foresight LLC
Investor relations
Jan 2010
Common Stock
9,615
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Jan 2010
Common Stock
37,500
Quarterly services per contract
Section 4 (2) *
The Abajian Group, LLC
Consultant
Jan 2010
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Jan 2010
Warrant
1,000,000
Services per contract
Section 4 (2) *
Advisor Associates Inc.
Consultant
**
Feb 2010
Common Stock
9,921
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Feb 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Feb 2010
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Mar 2010
Common Stock
10,000
Monthly services per contract
Section 4 (2) *
Forman Foresight LLC
Investor relations
Mar 2010
Common Stock
483,871
$300,000
Section 4 (2) *
Assured Pharmacy Inc.
Consultant
Mar 2010
Common Stock
300,000
Services per contract
Section 4 (2) *
Moscato Marsh & Partners Inc.
Consultant
Mar 2010
Common Stock
200,000
Services per contract
Section 4 (2) *
Moscato Marsh & Partners Inc.
Consultant
Mar 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Mar 2010
Common Stock
9,977
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Mar 2010
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Apr 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Apr 2010
Common Stock
5,000
Monthly services per contract
Section 4 (2) *
Forman Foresight LLC
Investor relations
Apr 2010
Common Stock
12,637
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Apr 2010
Common Stock
37,500
Quarterly services per contract
Section 4 (2) *
The Abajian Group, LLC
Consultant
Apr 2010
Common Stock
5,000
Monthly services per contract
Section 4 (2) *
Forman Foresight LLC
Investor relations
Apr 2010
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
May 2010
Common Stock
15,752
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
May 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
May 2010
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
May 2010
Common Stock
5,000
Monthly services per contract
Section 4 (2) *
Forman Foresight LLC
Investor relations
Jul 2010
Common Stock
54,545
$18,000
Section 4 (2) *
Health Management Resources Inc.
Consultant
Jun 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Jun 2010
Common Stock
15,385
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Jun 2010
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Jul 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Jun 2010
Common Stock
5,000
Monthly services per contract
Section 4 (2) *
Forman Foresight LLC
Investor relations
Jul 2010
Common Stock
18,912
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Jul 2010
Common Stock
37,500
Quarterly services per contract
Section 4 (2) *
The Abajian Group, LLC
Consultant
Jul 2010
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
May 2010
Common Stock
14,881
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Aug 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Aug 2010
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Sep 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Sep 2010
Common Stock
13,239
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Sep 2010
Common Stock
60,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Oct 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Oct 2010
Common Stock
73,000
$32,850
Section 4 (2) *
Market Update Network Corp.
Vendor, partial consideration
Oct 2010
Common Stock
150,000
Services per contract
Section 4 (2) *
Craig Eagle
Consultant
Oct 2010
Common Stock
15,024
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Oct 2010
Common Stock
300,000
Services per contract
Section 4 (2) *
Moscato Marsh & Partners Inc.
Consultant
Oct 2010
Common Stock
2,500,000
Services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Oct 2010
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Nov 2010
Common Stock
19,119
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Nov 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Nov 2010
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Dec 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Dec 2010
Common Stock
19,950
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Dec 2010
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Oct 2010
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Jan 2011
Common Stock
21,189
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Jan 2011
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Feb 2011
Common Stock
25,647
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Feb 2011
Common Stock
4,000
Monthly services per contract
Section 4 (2) *
American Capital Ventures, Inc.
Consultant
Mar 2011
Common Stock
300,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Mar 2011
Common Stock
25,479
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Apr 2011
Common Stock
26,557
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Apr 2011
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
May 2011
Common Stock
155,556
$35,000
Section 4 (2) *
Market Update Network Corp.
Vendor
May 2011
Common Stock
27,059
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
May 2011
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Jun 2011
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Jun 2011
Common Stock
33,569
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
July 2011
Common Stock
41,827
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
July 2011
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Aug 2011
Common Stock
55,081
$6,000
Section 4 (2) *
Beckerman Public Relations
Investor relations
Aug 2011
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Sep 2011
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Oct 2011
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Nov 2011
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Jan 2012
Common Stock
300,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Jan 2012
Common Stock
1,333,333
$200,000
Section 4 (2) *
Seahawk Capital Partners, Inc.
Financing finder's fee
Feb 2012
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Apr 2012
Common Stock
300,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Feb 2012
Common Stock
1,066,667
$160,000
Section 4 (2) *
Seahawk Capital Partners, Inc.
Financing finder's fee
May 2012
Common Stock
150,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
Jul 2012
Common Stock
300,000
Monthly services per contract
Section 4 (2) *
Seahawk Capital Partners, Inc.
Investor relations
13,275,836
* We believe this investor is an "accredited investor"
as that term is defined in Rule 501(a) of Regulation D under the Securities Act.
** We issued a common stock purchase warrant to Advisor Associates,
Inc. a consultant, pursuant to an agreement to provide us with financial services. In accordance with the agreement, which extended
until May 31, 2010, we issued Advisor Associates a warrant to purchase 1,000,000 shares of common stock at an exercise price of
$0.001 per share. The warrant was immediately exercisable upon issuance.
Item 16. Exhibits and Financial Statement Schedules.
EXHIBIT INDEX
The following exhibits are filed as part of, or incorporated
by reference into this registration statement:
Exhibit
Number
Description of Exhibit
(1)
1.1
Placement Agency Agreement, dated May 5, 2009, by and between Generex Biotechnology Corporation and Rodman & Renshaw (incorporated by reference to Exhibit 1.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on May 18, 2009)
1.2
Placement Agency Agreement, dated June 8, 2009, by and between Generex Biotechnology Corporation and Midtown Partners & Co., LLC and amendments dated August 5, August 18, and September 11, 2009 (incorporated by reference to Exhibit 1.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on September 15, 2009)
1.3
Amendment dated as of April 7, 2010 to Placement Agent Agreement attached as Exhibit 1.2 hereto (incorporated by reference .reference to Exhibit 1.2 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on April 8, 2010)
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3
1.4
Placement Agency Agreement dated September 11, 2009, by and between Generex Biotechnology Corporation and Maxim Group LLC. (incorporated by reference to Exhibit 1.2 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on September 15, 2009)
2
Agreement and Plan of Merger among Generex Biotechnology Corporation, Antigen Express, Inc. and AGEXP Acquisition Inc. (incorporated by reference to Exhibit 2.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on August 15, 2003)
3(i)(a)
Restated Certificate of Incorporation of Generex Biotechnology Corporation (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Post-Effective Amendment No. 1 to the Registration Statement on Form S-8 filed on October 26, 2009)
3(i)(b)
Certificate of Designation of Preferences, Rights and Limitations of Series A 9% Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on July 11, 2011).
3(i)(c)
Certificate of Designation of Preferences, Rights and Limitations of Series B 9% Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Generex Biotechnology Corporation's Current Report on form 8-K filed on February 1, 2012).
3(ii)
Amended and Restated By-Laws of Generex Biotechnology Corporation (incorporated by reference to Exhibit 3.2(ii) to Generex Biotechnology Corporation's Report on Form 8-K filed December 5, 2007)
4.1
Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Registration Statement on Form S-1 (File No. 333-82667) filed on July 12, 1999)
4.2.1
Form of Securities Purchase Agreement entered into with Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)
4.2.2
Form of Registration Rights Agreement entered into with Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)
4.2.3
Form of Warrant granted to Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)
4.3
Form of replacement Warrant issued to warrant holders exercising at reduced exercise price in May and June 2003 (incorporated by reference to Exhibit 4.13.7 to Generex Biotechnology Corporation's Report on Form 10-K for the period ended July 31, 2003 filed on October 29, 2003)
4.4.1
Securities Purchase Agreement, dated December 19, 2003, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K/A filed on March 24, 2004)
4.4.2
Registration Rights Agreement, dated December 19, 2003, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K/A filed on March 24, 2004)
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4.4.3
Form of Warrant issued in connection with Exhibit 4.4.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K/A filed on March 24, 2004)
4.4.4
Form of Additional Investment Right issued in connection with Exhibit 4.4.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K/A filed on March 24, 2004)
4.5.1
Securities Purchase Agreement, dated January 7, 2004, by and between Generex Biotechnology Corporation and ICN Capital Limited (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.5.2
Registration Rights Agreement, dated January 7, 2004, by and between Generex Biotechnology Corporation and ICN Capital Limited (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.5.3
Warrant issued in connection with Exhibit 4.5.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.5.4
Additional Investment Right issued in connection with Exhibit 4.5.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.6.1
Securities Purchase Agreement, dated January 9, 2004, by and between Generex Biotechnology Corporation and Vertical Ventures, LLC (incorporated by reference to Exhibit 4.5 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.6.2
Registration Rights Agreement, dated January 9, 2004, by and between Generex Biotechnology Corporation and Vertical Ventures, LLC (incorporated by reference to Exhibit 4.6 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.6.3
Warrant issued in connection with Exhibit 4.6.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.6.4
Additional Investment Right issued in connection with Exhibit 4.6.1 (incorporated by reference to Exhibit 4.8 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.7.1
Securities Purchase Agreement, dated February 6, 2004, by and between Generex Biotechnology Corporation and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.9 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.7.2
Registration Rights Agreement, dated February 6, 2004, by and between Generex Biotechnology Corporation and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.10 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.7.3
Warrant issued in connection with Exhibit 4.7.1 (incorporated by reference to Exhibit 4.11 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.7.4
Additional Investment Right issued in connection with Exhibit 4.7.1 (incorporated by reference to Exhibit 4.12 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.7.5
Escrow Agreement, dated February 26, 2004, by and among Generex Biotechnology Corporation, Eckert Seamans Cherin & Mellott, LLC and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.13 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.8.1
Securities Purchase Agreement, dated February 11, 2004, by and between Generex Biotechnology Corporation and Michael Sourlis (incorporated by reference to Exhibit 4.14 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
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5
4.8.2
Registration Rights Agreement, dated February 11, 2004, by and between Generex Biotechnology Corporation and Michael Sourlis (incorporated by reference to Exhibit 4.15 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.8.3
Additional Investment Right issued in connection with Exhibit 4.8.1 (incorporated by reference to Exhibit 4.17 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.9.1
Securities Purchase Agreement, dated February 13, 2004, by and between Generex Biotechnology Corporation and Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.18 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.9.2
Registration Rights Agreement, dated February 13, 2004, by and between Generex Biotechnology Corporation and Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.19 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.9.3
Warrant issued in connection with Exhibit 4.9.1 (incorporated by reference to Exhibit 4.20 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.9.4
Additional Investment Right issued in connection with Exhibit 4.9.1 (incorporated by reference to Exhibit 4.21 Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.10.1
Securities Purchase Agreement, dated June 23, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on July 14, 2004)
4.10.2
Registration Rights Agreement, dated June 23, 2004, by and among Generex Biotechnology Corporation and the investors (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on July 14, 2004)
4.10.3
Form of Warrant issued in connection with Exhibit 4.10.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on July 14, 2004)
4.10.4
Form of Additional Investment Right issued in connection Exhibit 4.10.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on July 14, 2004)
4.11.1
Securities Purchase Agreement, dated November 10, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on November 12, 2004)
4.11.2
Form of 6% Secured Convertible Debenture issued in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on November 12, 2004)
4.11.3
Registration Rights Agreement, dated November 10, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on November 12, 2004)
4.11.4
Form of Voting Agreement entered into in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation's Report on Form 8-K filed on November 12, 2004)
4.12
Warrant issued to The Aethena Group, LLC on April 28, 2005 (incorporated by reference to Exhibit 4.20 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)
4.13.1
Amendment No. 4 to Securities Purchase Agreement and Registration Rights Agreement entered into by and between Generex Biotechnology Corporation and the Purchasers listed on the signature pages thereto on January 19, 2006 (incorporated by reference herein to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on January 20, 2006)
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4.13.2
Form of Additional AIRs issued in connection with Exhibit 4.13.1 (incorporated by reference herein to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on January 20, 2006)
4.14
Form of Warrant issued by Generex Biotechnology Corporation on January 23, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on January 24, 2006)
4.15.1
Agreement to Amend Warrants between Generex Biotechnology Corporation and Cranshire Capital L.P. dated February 27, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 28, 2006).
4.15.2
Agreement to Amend Warrants between Generex Biotechnology Corporation and Omicron Master Trust dated February 27, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 28, 2006)
4.15.3
Agreement to Amend Warrants between Generex Biotechnology Corporation and Iroquois Capital L.P. dated February 27, 2006 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 28, 2006)
4.15.4
Agreement to Amend Warrants between Generex Biotechnology Corporation and Smithfield Fiduciary LLC dated February 27, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 28, 2006)
4.15.5
Form of Warrant issued by Generex Biotechnology Corporation on February 27, 2006 (incorporated by reference to Exhibit 4.26 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
4.16.1
Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Cranshire Capital, L.P. dated February 28, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2006)
4.16.2
Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Omicron Master Trust dated February 28, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2006)
4.16.3
Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Iroquois Capital LP dated February 28, 2006 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2006)
4.16.4
Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Smithfield Fiduciary LLC dated February 28, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2006)
4.16.5
Form of Additional AIR Debenture issued by Generex Biotechnology Corporation on February 28, 2006 (incorporated by reference to Exhibit 4.31 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
4.16.6
Form of Additional AIR Warrant issued by Generex Biotechnology Corporation on February 28, 2006 (incorporated by reference to Exhibit 4.32 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
4.17.1
Form of Agreement to Amend Warrants between Generex Biotechnology Corporation and the Investors dated March 6, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 7, 2006)
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4.17.2
Form of Warrant issued by Generex Biotechnology Corporation on March 6, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 7, 2006)
4.18
Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.33 to Generex Biotechnology Corporation's Report on Form 10-Q filed on June 14, 2006)
4.19
Form of Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to certain employees (incorporated by reference to Exhibit 4.34 to Generex Biotechnology Corporation's Report on Form 10-Q filed on June 14, 2006)
4.20.1
Securities Purchase Agreement entered into by and between Generex Biotechnology Corporation and four Investors on June 1, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 2, 2006)
4.20.2
Form of Warrant issued by Generex Biotechnology Corporation on June 1, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 2, 2006)
4.21.1
Form of Amendment to Outstanding Warrants (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 2, 2006)
4.21.2
Form of Warrant issued by Generex Biotechnology Corporation on June 1, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 2, 2006)
4.22.1
Securities Purchase Agreement, dated as of March 31, 2008 among the Registrant and each of the purchasers named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 2, 2008)
4.22.2
Form of 8% Secured Convertible Note, as amended (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Registration Statement (333-150562) on Form S-3 filed on April 30, 2008)
4.22.3
Form of Series A Warrant, as amended (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)
4.22.4
Form of Series A-1 Warrant, as amended (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)
4.22.5
Form of Series B Warrant, as amended (incorporated by reference to Exhibit 4.5 to Generex Biotechnology Corporation's Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)
4.22.6
Form of Series C Warrant, as amended (incorporated by reference to Exhibit 4.6 to Generex Biotechnology Corporation's Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)
4.22.7
Registration Rights Agreement, dated March 31, 2008, among Registrant and each of the purchasers under Securities Purchase Agreement (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 2, 2008)
4.22.8
Security Agreement (incorporated by reference to Exhibit 4.8 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 2, 2008)
4.22.9
Form of Guaranty (incorporated by reference to Exhibit 4.9 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 2, 2008)
4.23
Form of Securities Purchase Agreement, date May 15, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 1.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on May 18, 2009)
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4.24.1
Form of Securities Purchase Agreement, dated June 15, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 16, 2009)
4.24.2
Form of Warrant issued in connection with Exhibit 4.24.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 16, 2009)
4.24.3
Form of Warrant issued to Midtown Partners & Co., LLC in connection with Exhibit 4.24.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 16, 2009)
4.25.1
Form of Securities Purchase Agreement, dated August 6, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 6, 2009)
4.25.2
Form of Warrant issued in connection with Exhibit 4.25.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 6, 2009)
4.25.3
Form of Warrant issued to Midtown Partners & Co., LLC in connection with Exhibit 4.25.1 (incorporated by reference to Exhibit 4.28 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 6, 2009)
4.26.1
Form of Securities Purchase Agreement, dated September 11, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on September 15, 2009)
4.26.2
Form of Warrant issued in connection with Exhibit 4.26.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on September 15, 2009)
4.26.3
Form of Warrant issued to Midtown Partners & Co., LLC and  Maxim Group LLC in connection with Exhibit 4.26.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on September 15, 2009)
4.27.1
Common Stock Purchase Agreement dated April 7, 2010 by and between Generex Biotechnology Corporation and Seaside 88, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form  8-K filed on April 8, 2010)
4.27.2
First Amendment to Common Stock Purchase Agreement dated April 28, 2010 by and between Generex Biotechnology Corporation and Seaside 88, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form  8-K filed on April 29, 2010)
4.27.3
Form of Warrant issued to Midtown Partners & Co., LLC in connection with Exhibit 4.27.1 hereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 8, 2010)
4.28.1
Form of Securities Purchase Agreement dated January 24, 2011 by and between Generex Biotechnology Corporation and the investors (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on January 25, 2011).
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4.28.2
Form of Warrant issued to the investors in connection with Exhibit 4.28.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on January 25, 2011).
4.28.3
Amendment to Purchase Agreement dated March 25, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on March 30, 2011).
4.28.4
Second Amendment to Purchase Agreement dated April 13, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on April 14, 2011).
4.29.1
Form of Securities Purchase Agreement, dated July 8, 2011, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on July 11, 2011).
4.29.2
Form of Common Stock Warrant issued in connection with Exhibit 4.29.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on July 11, 2011).
4.30.1
Form of Securities Purchase Agreement, dated January 31, 2012, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on February 1, 2012).
4.30.2
Form of Common Stock Warrant issued in connection with Exhibit 4.30.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 1, 2012).
4.30.3
Form of Registration Rights Agreement by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 1, 2012)
4.31.1
Form of Securities Purchase Agreement, dated August 8, 2012, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on August 8, 2012).
4.31.2
Form of Common Stock Warrant issued in connection with Exhibit 4.30.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 8, 2012).
4.31.3
Form of Registration Rights Agreement by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 8, 2012)
5.1
Opinion of Eckert Seamans Cherin & Mellott, LLC
9
Form of Voting Agreement entered into in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on November 12, 2004)
10.1
Stock Option Agreement by and between Generex Biotechnology Corporation and Peter G. Amanatides to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.3 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.2
Stock Option Agreement by and between Generex Biotechnology Corporation and John P. Barratt to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
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10.3
Stock Option Agreement by and between Generex Biotechnology Corporation and Brian T. McGee to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.4
Stock Option Agreement by and between Generex Biotechnology Corporation and John P. Barratt to purchase 35,714 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.5
Stock Option Agreement by and between Generex Biotechnology Corporation and Brian T. McGee to purchase 35,714 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.6
Stock Option Agreement by and between Generex Biotechnology Corporation and Gerald Bernstein, M.D. to purchase 100,000 shares of Common Stock at the exercise price of $0.61 per share (incorporated by reference to Exhibit 10.8 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.7
Stock Option Agreement by and between Generex Biotechnology Corporation and Mark Fletcher to purchase 250,000 shares of Common Stock at the exercise price of $0.61 per share (incorporated by reference to Exhibit 10.9 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.8
Stock Option Agreement by and between Generex Biotechnology Corporation and Mark A. Fletcher to purchase 470,726 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.12 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.9
Employment Agreement by and between Generex Biotechnology Corporation and Gerald Bernstein M.D. (incorporated by reference to Exhibit 10.16 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.10
1998 Stock Option Plan (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Registration Statement on Form S-1 (File No. 333-82667) filed on July 12, 1999)*
10.11
2000 Stock Option Plan (incorporated by reference to Exhibit 4.3.2 to Generex Biotechnology Corporation's Annual Report on Form 10-K filed on October 30, 2000)*
10.12
Amended 2001 Stock Option Plan (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on December 15, 2003)*
10.13
2006 Stock Plan (incorporated by reference to Annex A to Generex Biotechnology Corporation's Proxy Statement for the Annual Meeting of Stockholders held on May 30, 2006)*
10.14
Stockholders Agreement among Generex Biotechnology Corporation and the former holders of capital stock of Antigen Express, Inc. (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation's Annual Report on Form 10-K filed on October 29, 2003)
10.15
Form of Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to certain employees (incorporated by reference to Exhibit 4.34 to Generex Biotechnology Corporation's Report on Form 10-Q filed on June 14, 2006)*
10.16
Quotation for Contract Manufacturing of Oral-lyn™ entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on June 20, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.25 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on February 14, 2007)
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10.17
Quotation Amendment for Contract Manufacturing of Oral-lyn™ entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on August 18, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.26 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
10.18
Clinical Supply Agreement entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on September 6, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.27 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
10.19
Form of Restricted Stock Agreement for awards to executive officers of Generex Biotechnology Corporation under the Generex Biotechnology Corporation 2006 Stock Plan (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 23, 2007)*
10.20
Summary of Employment Terms for Anna Gluskin effective as of January 1, 2006 (incorporated by reference to Exhibit 10.28 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on November 28, 2007)*
10.21
Summary of Employment Terms for Rose Perri effective as of January 1, 2006 (incorporated by reference to Exhibit 10.29 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on November 28, 2007)*
10.22
Summary of Employment Terms for Mark A. Fletcher effective as of April 21, 2003 (incorporated by reference to Exhibit 10.30 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on November 28, 2007)*
10.23
Employment Agreement between Generex Biotechnology Corporation and Gerald Bernstein, M.D., effective as of April 1, 2002 (incorporated by reference to Exhibit 10.31 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on November 28, 2007)*
10.24
Form of Consent and Waiver Agreement entered into with Cranshire Capital, L.P., Portside Growth and Opportunity Fund and, Smithfield Fiduciary LLC (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 1, 2008)
10.25
Form of Consent and Waiver Agreement entered into with Rockmore Investment Master Fund Ltd. (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 1, 2008)
10.26
Form of Consent and Waiver Agreement entered into with the Iroquois Funds (incorporated by reference to Exhibit 10.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 1, 2008)
10.27
Form of separate Agreements entered into with each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC and Iroquois Capital Opportunity Fund, LP on December 22, 2008 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on December 23, 2008)
10.28
Form of Agreement entered into with Iroquois Master Fund Ltd. on December 22, 2008 (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on December 23, 2008)
10.29
Form of separate Letter Agreements dated as of February 13, 2009 and entered into by and between Generex Biotechnology Corporation and each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC, Iroquois Master Fund Ltd. and Iroquois Capital Opportunity Fund, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 17, 2009)
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10.30
Form of Forbearance and Amendment Agreement dated as of February 27, 2009 and entered into by and between Generex Biotechnology Corporation and each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC, Iroquois Master Fund Ltd. and Iroquois Capital Opportunity Fund, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 2, 2009)
10.31
At Market Offering Issuance Agreement  dated October 14, 2009 entered into between Generex Biotechnology Corporation and Wm Smith & Co, LLC (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on October 15, 2009)
10.32
Recombinant Human Insulin Active Ingredient Manufacturing and Supply Agreement entered into on December 7, 2009 by and  between Generex Biotechnology Corporation and Sanofi-Aventis Deutschland GmbH (subject to confidential treatment) (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on December 11, 2009)
10.33
Summary of Compensation Arrangements with Executive Officers and Directors as of March 25, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).
10.34
Incentive Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 11, 2010)*
10.35
Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Brian McGee (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 11, 2010)*
10.36
Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 11, 2010)*
10.37
Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Nola Masterson (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 11, 2010).*
10.38
Amendment to the Employment Terms for Mark A. Fletcher, dated September 29, 2010 (incorporated by reference to Exhibit 10.46 to Generex Biotechnology Corporation's Annual Report on Form 10-K filed on October 14, 2010).*
10.39
Limited Liability Company Ownership Interest Purchase Agreement by and among Generex Biotechnology Corporation, Global Medical Direct, LLC and Joseph Corso, Jr., Robert S. Shea and Mark Franz (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on October 12, 2010)
10.40
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.41
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.42
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
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10.43
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and David Brusegard (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.44
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Stephen Fellows (incorporated by reference to Exhibit 10.8 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.45
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.9 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.46
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Nola E. Masterson (incorporated by reference to Exhibit 10.10 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.47
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Brian T. McGee (incorporated by reference to Exhibit 10.11 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.48
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Mark A. Fletcher.
10.49
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and John P. Barratt.
10.50
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Brian T. McGee.
10.51
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Nola E. Masterson.
10.52
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and James Anderson.
10.53
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Eric von Hofe.
10.54
Nonqualified Stock Option Grant Agreement dated June 20, 2012 by and between Generex Biotechnology Corporation and Stephen Fellows.
10.55
Nonqualified Stock Option Grant Agreement dated June 20, 2012 by and between Generex Biotechnology Corporation and David Brusegard.
21
Subsidiaries of the Registrant (incorporated by reference to Exhibit 21 to Generex Biotechnology Corporation's Annual Report on Form 10-K filed on October 14, 2011)
23.1
Consent of Eckert Seamans Cherin & Mellott, LLC (included in Exhibit 5.1)
23.2
Consent of MSCM LLP, independent registered public accounting firm
24
Power of Attorney (included on signature page hereto)
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* Management contract or management compensatory plan or arrangement.
(1)
In the case of incorporation by reference to documents filed by the Registrant under the Exchange Act, the Registrant's file number under the Exchange Act is 000-25169.
Item 17. Undertakings
(a)         The undersigned
registrant hereby undertakes:
(1)          To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)           To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)          To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and
(iii)         To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement.
(2)          That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(3)          To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
(4)          That,
for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
(i)           If
the registrant is relying on Rule 430B:
(A)         Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration statement; and
(B)          Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on
Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information
required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale
of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any
person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement
relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by
reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with
a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement
or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
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(5)          That,
for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
of the securities, in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless
of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser
by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered
to offer or sell such securities to such purchaser:
(i)           Any
preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule
424;
(ii)          Any
free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to
by the undersigned registrant;
(iii)         The
portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and
(iv)         Any
other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(b)          Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than a payment by the registrant of expenses incurred or paid
by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will,
unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-1 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the city of Toronto, Province of Ontario, Canada, on September 12, 2012.
GENEREX BIOTECHNOLOGY CORPORATION
By:
/s/ Mark A. Fletcher
Mark A. Fletcher
President and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that
each person whose signature appears below hereby constitutes and appoints Mark Fletcher, and each of them, his or her true and
lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name,
place and stead, in any and all capacities including his or her capacity as a director and/or officer of Generex Biotechnology
Corporation to sign any and all amendments (including post-effective amendments) to this registration statement, and to file the
same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting
unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could
do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or his or her
substitute or substitutes, may lawfully do or cause to be done by virtue thereof.
Pursuant to the requirements of the Securities
Act of 1933, as amended, this Registration Statement was signed by the following persons in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Mark A. Fletcher
President and Chief Executive Officer and General
September 12, 2012
Mark A. Fletcher
Counsel (Principal Executive Officer)
/s/ Stephen Fellows
Acting Chief Financial Officer
September 12, 2012
Stephen Fellows
(Principal Financial and Accounting Officer)
/s/ Brian T. McGee
Director
September 12, 2012
Brian T. McGee
/s/ John P. Barratt
Chairman of the Board of Directors
September 12, 2012
John P. Barratt
/s/ Nola E. Masterson
Director
September 12, 2012
Nola E. Masterson
/s/ James Anderson
Director
September 12, 2012
James Anderson
/s/ Eric von Hofe
Director
September 12, 2012
Eric von Hofe
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EXHIBIT INDEX
The following exhibits are filed as part of, or incorporated
by reference into this registration statement.
Exhibit
Number
Description of Exhibit
(1)
1.1
Placement Agency Agreement, dated May 5, 2009, by and between Generex Biotechnology Corporation and Rodman & Renshaw (incorporated by reference to Exhibit 1.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on May 18, 2009)
1.2
Placement Agency Agreement, dated June 8, 2009, by and between Generex Biotechnology Corporation and Midtown Partners & Co., LLC and amendments dated August 5, August 18, and September 11, 2009 (incorporated by reference to Exhibit 1.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on September 15, 2009)
1.3
Amendment dated as of April 7, 2010 to Placement Agent Agreement attached as Exhibit 1.2 hereto (incorporated by reference .reference to Exhibit 1.2 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on April 8, 2010)
1.4
Placement Agency Agreement dated September 11, 2009, by and between Generex Biotechnology Corporation and Maxim Group LLC. (incorporated by reference to Exhibit 1.2 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on September 15, 2009)
2
Agreement and Plan of Merger among Generex Biotechnology Corporation, Antigen Express, Inc. and AGEXP Acquisition Inc. (incorporated by reference to Exhibit 2.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on August 15, 2003)
3(i)(a)
Restated Certificate of Incorporation of Generex Biotechnology Corporation (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Post-Effective Amendment No. 1 to the Registration Statement on Form S-8 filed on October 26, 2009)
3(i)(b)
Certificate of Designation of Preferences, Rights and Limitations of Series A 9% Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on July 11, 2011).
3(i)(c)
Certificate of Designation of Preferences, Rights and Limitations of Series B 9% Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Generex Biotechnology Corporation's Current Report on form 8-K filed on February 1, 2012).
3(ii)
Amended and Restated By-Laws of Generex Biotechnology Corporation (incorporated by reference to Exhibit 3.2(ii) to Generex Biotechnology Corporation's Report on Form 8-K filed December 5, 2007)
4.1
Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Registration Statement on Form S-1 (File No. 333-82667) filed on July 12, 1999)
4.2.1
Form of Securities Purchase Agreement entered into with Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)
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4.2.2
Form of Registration Rights Agreement entered into with Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)
4.2.3
Form of Warrant granted to Cranshire Capital, L.P.; Gryphon Partners, L.P.; Langley Partners, L.P.; Lakeshore Capital, Ltd.; LH Financial; Omicron Capital; Photon Fund, Ltd.; Howard Todd Horberg and Vertical Ventures, LLC dated May 29, 2003 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 10-Q/A for the quarter ended April 30, 2003 filed on August 13, 2003)
4.3
Form of replacement Warrant issued to warrant holders exercising at reduced exercise price in May and June 2003 (incorporated by reference to Exhibit 4.13.7 to Generex Biotechnology Corporation's Report on Form 10-K for the period ended July 31, 2003 filed on October 29, 2003)
4.4.1
Securities Purchase Agreement, dated December 19, 2003, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K/A filed on March 24, 2004)
4.4.2
Registration Rights Agreement, dated December 19, 2003, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K/A filed on March 24, 2004)
4.4.3
Form of Warrant issued in connection with Exhibit 4.4.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K/A filed on March 24, 2004)
4.4.4
Form of Additional Investment Right issued in connection with Exhibit 4.4.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K/A filed on March 24, 2004)
4.5.1
Securities Purchase Agreement, dated January 7, 2004, by and between Generex Biotechnology Corporation and ICN Capital Limited (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.5.2
Registration Rights Agreement, dated January 7, 2004, by and between Generex Biotechnology Corporation and ICN Capital Limited (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.5.3
Warrant issued in connection with Exhibit 4.5.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.5.4
Additional Investment Right issued in connection with Exhibit 4.5.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.6.1
Securities Purchase Agreement, dated January 9, 2004, by and between Generex Biotechnology Corporation and Vertical Ventures, LLC (incorporated by reference to Exhibit 4.5 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.6.2
Registration Rights Agreement, dated January 9, 2004, by and between Generex Biotechnology Corporation and Vertical Ventures, LLC (incorporated by reference to Exhibit 4.6 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.6.3
Warrant issued in connection with Exhibit 4.6.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.6.4
Additional Investment Right issued in connection with Exhibit 4.6.1 (incorporated by reference to Exhibit 4.8 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
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4.7.1
Securities Purchase Agreement, dated February 6, 2004, by and between Generex Biotechnology Corporation and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.9 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.7.2
Registration Rights Agreement, dated February 6, 2004, by and between Generex Biotechnology Corporation and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.10 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.7.3
Warrant issued in connection with Exhibit 4.7.1 (incorporated by reference to Exhibit 4.11 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.7.4
Additional Investment Right issued in connection with Exhibit 4.7.1 (incorporated by reference to Exhibit 4.12 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.7.5
Escrow Agreement, dated February 26, 2004, by and among Generex Biotechnology Corporation, Eckert Seamans Cherin & Mellott, LLC and Alexandra Global Master Fund, Ltd. (incorporated by reference to Exhibit 4.13 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.8.1
Securities Purchase Agreement, dated February 11, 2004, by and between Generex Biotechnology Corporation and Michael Sourlis (incorporated by reference to Exhibit 4.14 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.8.2
Registration Rights Agreement, dated February 11, 2004, by and between Generex Biotechnology Corporation and Michael Sourlis (incorporated by reference to Exhibit 4.15 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.8.3
Additional Investment Right issued in connection with Exhibit 4.8.1 (incorporated by reference to Exhibit 4.17 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.9.1
Securities Purchase Agreement, dated February 13, 2004, by and between Generex Biotechnology Corporation and Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.18 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.9.2
Registration Rights Agreement, dated February 13, 2004, by and between Generex Biotechnology Corporation and Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.19 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.9.3
Warrant issued in connection with Exhibit 4.9.1 (incorporated by reference to Exhibit 4.20 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.9.4
Additional Investment Right issued in connection with Exhibit 4.9.1 (incorporated by reference to Exhibit 4.21 Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2004)
4.10.1
Securities Purchase Agreement, dated June 23, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on July 14, 2004)
4.10.2
Registration Rights Agreement, dated June 23, 2004, by and among Generex Biotechnology Corporation and the investors (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on July 14, 2004)
4.10.3
Form of Warrant issued in connection with Exhibit 4.10.1 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on July 14, 2004)
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4.10.4
Form of Additional Investment Right issued in connection Exhibit 4.10.1 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on July 14, 2004)
4.11.1
Securities Purchase Agreement, dated November 10, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on November 12, 2004)
4.11.2
Form of 6% Secured Convertible Debenture issued in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on November 12, 2004)
4.11.3
Registration Rights Agreement, dated November 10, 2004, by and among Generex Biotechnology Corporation and the investors named therein (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on November 12, 2004)
4.11.4
Form of Voting Agreement entered into in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation's Report on Form 8-K filed on November 12, 2004)
4.12
Warrant issued to The Aethena Group, LLC on April 28, 2005 (incorporated by reference to Exhibit 4.20 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)
4.13.1
Amendment No. 4 to Securities Purchase Agreement and Registration Rights Agreement entered into by and between Generex Biotechnology Corporation and the Purchasers listed on the signature pages thereto on January 19, 2006 (incorporated by reference herein to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on January 20, 2006)
4.13.2
Form of Additional AIRs issued in connection with Exhibit 4.13.1 (incorporated by reference herein to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on January 20, 2006)
4.14
Form of Warrant issued by Generex Biotechnology Corporation on January 23, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on January 24, 2006)
4.15.1
Agreement to Amend Warrants between Generex Biotechnology Corporation and Cranshire Capital L.P. dated February 27, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 28, 2006).
4.15.2
Agreement to Amend Warrants between Generex Biotechnology Corporation and Omicron Master Trust dated February 27, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 28, 2006)
4.15.3
Agreement to Amend Warrants between Generex Biotechnology Corporation and Iroquois Capital L.P. dated February 27, 2006 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 28, 2006)
4.15.4
Agreement to Amend Warrants between Generex Biotechnology Corporation and Smithfield Fiduciary LLC dated February 27, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 28, 2006)
4.15.5
Form of Warrant issued by Generex Biotechnology Corporation on February 27, 2006 (incorporated by reference to Exhibit 4.26 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
4.16.1
Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Cranshire Capital, L.P. dated February 28, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2006)
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4.16.2
Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Omicron Master Trust dated February 28, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2006)
4.16.3
Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Iroquois Capital LP dated February 28, 2006 (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2006)
4.16.4
Agreement to Amend Additional Investment Right between Generex Biotechnology Corporation and Smithfield Fiduciary LLC dated February 28, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 1, 2006)
4.16.5
Form of Additional AIR Debenture issued by Generex Biotechnology Corporation on February 28, 2006 (incorporated by reference to Exhibit 4.31 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
4.16.6
Form of Additional AIR Warrant issued by Generex Biotechnology Corporation on February 28, 2006 (incorporated by reference to Exhibit 4.32 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
4.17.1
Form of Agreement to Amend Warrants between Generex Biotechnology Corporation and the Investors dated March 6, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 7, 2006)
4.17.2
Form of Warrant issued by Generex Biotechnology Corporation on March 6, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 7, 2006)
4.18
Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to Zapfe Holdings, Inc. (incorporated by reference to Exhibit 4.33 to Generex Biotechnology Corporation's Report on Form 10-Q filed on June 14, 2006)
4.19
Form of Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to certain employees (incorporated by reference to Exhibit 4.34 to Generex Biotechnology Corporation's Report on Form 10-Q filed on June 14, 2006)
4.20.1
Securities Purchase Agreement entered into by and between Generex Biotechnology Corporation and four Investors on June 1, 2006 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 2, 2006)
4.20.2
Form of Warrant issued by Generex Biotechnology Corporation on June 1, 2006 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 2, 2006)
4.21.1
Form of Amendment to Outstanding Warrants (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 2, 2006)
4.21.2
Form of Warrant issued by Generex Biotechnology Corporation on June 1, 2006 (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 2, 2006)
4.22.1
Securities Purchase Agreement, dated as of March 31, 2008 among the Registrant and each of the purchasers named therein (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 2, 2008)
4.22.2
Form of 8% Secured Convertible Note, as amended (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Registration Statement (333-150562) on Form S-3 filed on April 30, 2008)
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4.22.3
Form of Series A Warrant, as amended (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)
4.22.4
Form of Series A-1 Warrant, as amended (incorporated by reference to Exhibit 4.4 to Generex Biotechnology Corporation's Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)
4.22.5
Form of Series B Warrant, as amended (incorporated by reference to Exhibit 4.5 to Generex Biotechnology Corporation's Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)
4.22.6
Form of Series C Warrant, as amended (incorporated by reference to Exhibit 4.6 to Generex Biotechnology Corporation's Registration Statement on Form S-3 (333-150562) filed on April 30, 2008)
4.22.7
Registration Rights Agreement, dated March 31, 2008, among Registrant and each of the purchasers under Securities Purchase Agreement (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 2, 2008)
4.22.8
Security Agreement (incorporated by reference to Exhibit 4.8 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 2, 2008)
4.22.9
Form of Guaranty (incorporated by reference to Exhibit 4.9 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 2, 2008)
4.23
Form of Securities Purchase Agreement, date May 15, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 1.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on May 18, 2009)
4.24.1
Form of Securities Purchase Agreement, dated June 15, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 16, 2009)
4.24.2
Form of Warrant issued in connection with Exhibit 4.24.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 16, 2009)
4.24.3
Form of Warrant issued to Midtown Partners & Co., LLC in connection with Exhibit 4.24.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on June 16, 2009)
4.25.1
Form of Securities Purchase Agreement, dated August 6, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 6, 2009)
4.25.2
Form of Warrant issued in connection with Exhibit 4.25.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 6, 2009)
4.25.3
Form of Warrant issued to Midtown Partners & Co., LLC in connection with Exhibit 4.25.1 (incorporated by reference to Exhibit 4.28 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 6, 2009)
4.26.1
Form of Securities Purchase Agreement, dated September 11, 2009, entered into between Generex Biotechnology Corporation and each investor in the offering (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on September 15, 2009)
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4.26.2
Form of Warrant issued in connection with Exhibit 4.26.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on September 15, 2009)
4.26.3
Form of Warrant issued to Midtown Partners & Co., LLC and  Maxim Group LLC in connection with Exhibit 4.26.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on September 15, 2009)
4.27.1
Common Stock Purchase Agreement dated April 7, 2010 by and between Generex Biotechnology Corporation and Seaside 88, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form  8-K filed on April 8, 2010)
4.27.2
First Amendment to Common Stock Purchase Agreement dated April 28, 2010 by and between Generex Biotechnology Corporation and Seaside 88, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form  8-K filed on April 29, 2010)
4.27.3
Form of Warrant issued to Midtown Partners & Co., LLC in connection with Exhibit 4.27.1 hereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on April 8, 2010)
4.28.1
Form of Securities Purchase Agreement dated January 24, 2011 by and between Generex Biotechnology Corporation and the investors (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on January 25, 2011).
4.28.2
Form of Warrant issued to the investors in connection with Exhibit 4.28.1 (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on January 25, 2011).
4.28.3
Amendment to Purchase Agreement dated March 25, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on March 30, 2011).
4.28.4
Second Amendment to Purchase Agreement dated April 13, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on April 14, 2011).
4.29.1
Form of Securities Purchase Agreement, dated July 8, 2011, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on July 11, 2011).
4.29.2
Form of Common Stock Warrant issued in connection with Exhibit 4.29.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on July 11, 2011).
4.30.1
Form of Securities Purchase Agreement, dated January 31, 2012, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on February 1, 2012).
4.30.2
Form of Common Stock Warrant issued in connection with Exhibit 4.30.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 1, 2012).
4.30.3
Form of Registration Rights Agreement by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 1, 2012)
4.31.1
Form of Securities Purchase Agreement, dated August 8, 2012, by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on August 8, 2012).
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4.31.2
Form of Common Stock Warrant issued in connection with Exhibit 4.30.1 (incorporated by reference to Exhibit 4.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 8, 2012).
4.31.3
Form of Registration Rights Agreement by and among Generex Biotechnology Corporation and the purchaser(s) listed on the signature pages thereto (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 8, 2012)
5.1
Opinion of Eckert Seamans Cherin & Mellott, LLC
9
Form of Voting Agreement entered into in connection with Exhibit 4.11.1 (incorporated by reference to Exhibit 4.7 to Generex Biotechnology Corporation's Current Report on Form 8-K filed on November 12, 2004)
10.1
Stock Option Agreement by and between Generex Biotechnology Corporation and Peter G. Amanatides to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.3 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.2
Stock Option Agreement by and between Generex Biotechnology Corporation and John P. Barratt to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.3
Stock Option Agreement by and between Generex Biotechnology Corporation and Brian T. McGee to purchase 100,000 shares of Common Stock at the exercise price of $0.56 per share (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.4
Stock Option Agreement by and between Generex Biotechnology Corporation and John P. Barratt to purchase 35,714 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.5
Stock Option Agreement by and between Generex Biotechnology Corporation and Brian T. McGee to purchase 35,714 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.6
Stock Option Agreement by and between Generex Biotechnology Corporation and Gerald Bernstein, M.D. to purchase 100,000 shares of Common Stock at the exercise price of $0.61 per share (incorporated by reference to Exhibit 10.8 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.7
Stock Option Agreement by and between Generex Biotechnology Corporation and Mark Fletcher to purchase 250,000 shares of Common Stock at the exercise price of $0.61 per share (incorporated by reference to Exhibit 10.9 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.8
Stock Option Agreement by and between Generex Biotechnology Corporation and Mark A. Fletcher to purchase 470,726 shares of Common Stock at the exercise price of $0.001 per share (incorporated by reference to Exhibit 10.12 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
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10.9
Employment Agreement by and between Generex Biotechnology Corporation and Gerald Bernstein M.D. (incorporated by reference to Exhibit 10.16 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 14, 2005)*
10.10
1998 Stock Option Plan (incorporated by reference to Exhibit 4.3 to Generex Biotechnology Corporation's Registration Statement on Form S-1 (File No. 333-82667) filed on July 12, 1999)*
10.11
2000 Stock Option Plan (incorporated by reference to Exhibit 4.3.2 to Generex Biotechnology Corporation's Annual Report on Form 10-K filed on October 30, 2000)*
10.12
Amended 2001 Stock Option Plan (incorporated by reference to Exhibit 4.1 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on December 15, 2003)*
10.13
2006 Stock Plan (incorporated by reference to Annex A to Generex Biotechnology Corporation's Proxy Statement for the Annual Meeting of Stockholders held on May 30, 2006)*
10.14
Stockholders Agreement among Generex Biotechnology Corporation and the former holders of capital stock of Antigen Express, Inc. (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation's Annual Report on Form 10-K filed on October 29, 2003)
10.15
Form of Warrant issued by Generex Biotechnology Corporation on April 17, 2006 to certain employees (incorporated by reference to Exhibit 4.34 to Generex Biotechnology Corporation's Report on Form 10-Q filed on June 14, 2006)*
10.16
Quotation for Contract Manufacturing of Oral-lyn™ entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on June 20, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.25 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on February 14, 2007)
10.17
Quotation Amendment for Contract Manufacturing of Oral-lyn™ entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on August 18, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.26 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
10.18
Clinical Supply Agreement entered into between Generex Biotechnology Corporation and Cardinal Health PTS, LLC on September 6, 2006 (subject to confidential treatment) (incorporated by reference to Exhibit 10.27 to Generex Biotechnology Corporation's Report on Form 10-K filed on October 16, 2006)
10.19
Form of Restricted Stock Agreement for awards to executive officers of Generex Biotechnology Corporation under the Generex Biotechnology Corporation 2006 Stock Plan (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 23, 2007)*
10.20
Summary of Employment Terms for Anna Gluskin effective as of January 1, 2006 (incorporated by reference to Exhibit 10.28 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on November 28, 2007)*
10.21
Summary of Employment Terms for Rose Perri effective as of January 1, 2006 (incorporated by reference to Exhibit 10.29 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on November 28, 2007)*
10.22
Summary of Employment Terms for Mark A. Fletcher effective as of April 21, 2003 (incorporated by reference to Exhibit 10.30 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on November 28, 2007)*
10.23
Employment Agreement between Generex Biotechnology Corporation and Gerald Bernstein, M.D., effective as of April 1, 2002 (incorporated by reference to Exhibit 10.31 to Generex Biotechnology Corporation's Report on Form 10-K/A filed on November 28, 2007)*
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10.24
Form of Consent and Waiver Agreement entered into with Cranshire Capital, L.P., Portside Growth and Opportunity Fund and, Smithfield Fiduciary LLC (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 1, 2008)
10.25
Form of Consent and Waiver Agreement entered into with Rockmore Investment Master Fund Ltd. (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 1, 2008)
10.26
Form of Consent and Waiver Agreement entered into with the Iroquois Funds (incorporated by reference to Exhibit 10.3 to Generex Biotechnology Corporation's Report on Form 8-K filed on August 1, 2008)
10.27
Form of separate Agreements entered into with each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC and Iroquois Capital Opportunity Fund, LP on December 22, 2008 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on December 23, 2008)
10.28
Form of Agreement entered into with Iroquois Master Fund Ltd. on December 22, 2008 (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation's Report on Form 8-K filed on December 23, 2008)
10.29
Form of separate Letter Agreements dated as of February 13, 2009 and entered into by and between Generex Biotechnology Corporation and each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC, Iroquois Master Fund Ltd. and Iroquois Capital Opportunity Fund, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on February 17, 2009)
10.30
Form of Forbearance and Amendment Agreement dated as of February 27, 2009 and entered into by and between Generex Biotechnology Corporation and each of Cranshire Capital, L.P., Portside Growth and Opportunity Fund, Rockmore Investment Master Fund Ltd., Smithfield Fiduciary LLC, Iroquois Master Fund Ltd. and Iroquois Capital Opportunity Fund, LP. (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on March 2, 2009)
10.31
At Market Offering Issuance Agreement  dated October 14, 2009 entered into between Generex Biotechnology Corporation and Wm Smith & Co, LLC (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on October 15, 2009)
10.32
Recombinant Human Insulin Active Ingredient Manufacturing and Supply Agreement entered into on December 7, 2009 by and  between Generex Biotechnology Corporation and Sanofi-Aventis Deutschland GmbH (subject to confidential treatment) (incorporated by reference to Exhibit 10.2 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on December 11, 2009)
10.33
Summary of Compensation Arrangements with Executive Officers and Directors as of March 25, 2011 (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).
10.34
Incentive Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 11, 2010)*
10.35
Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Brian McGee (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 11, 2010)*
10.36
Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 11, 2010)*
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10.37
Nonqualified Stock Option Grant Agreement dated March 9, 2010 by and between Generex Biotechnology Corporation and Nola Masterson (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 11, 2010).*
10.38
Amendment to the Employment Terms for Mark A. Fletcher, dated September 29, 2010 (incorporated by reference to Exhibit 10.46 to Generex Biotechnology Corporation's Annual Report on Form 10-K filed on October 14, 2010).*
10.39
Limited Liability Company Ownership Interest Purchase Agreement by and among Generex Biotechnology Corporation, Global Medical Direct, LLC and Joseph Corso, Jr., Robert S. Shea and Mark Franz (incorporated by reference to Exhibit 10.1 to Generex Biotechnology Corporation's Report on Form 8-K filed on October 12, 2010)
10.40
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.4 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.41
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.5 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.42
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and John P. Barratt (incorporated by reference to Exhibit 10.6 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.43
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and David Brusegard (incorporated by reference to Exhibit 10.7 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.44
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Stephen Fellows (incorporated by reference to Exhibit 10.8 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.45
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Mark A. Fletcher (incorporated by reference to Exhibit 10.9 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.46
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Nola E. Masterson (incorporated by reference to Exhibit 10.10 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.47
Nonqualified Stock Option Grant Agreement dated March 25, 2011 by and between Generex Biotechnology Corporation and Brian T. McGee (incorporated by reference to Exhibit 10.11 to Generex Biotechnology Corporation's Quarterly Report on Form 10-Q filed on June 3, 2011).*
10.48
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Mark A. Fletcher.
10.49
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and John P. Barratt.
10.50
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Brian T. McGee.
10.51
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Nola E. Masterson.
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10.52
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and James Anderson.
10.53
Nonqualified Stock Option Grant Agreement dated June 19, 2012 by and between Generex Biotechnology Corporation and Eric von Hofe.
10.54
Nonqualified Stock Option Grant Agreement dated June 20, 2012 by and between Generex Biotechnology Corporation and Stephen Fellows.
10.55
Nonqualified Stock Option Grant Agreement dated June 20, 2012 by and between Generex Biotechnology Corporation and David Brusegard.
21
Subsidiaries of the Registrant (incorporated by reference to Exhibit 21 to Generex Biotechnology Corporation's Annual Report on Form 10-K filed on October 14, 2011)
23.1
Consent of Eckert Seamans Cherin & Mellott, LLC (included in Exhibit 5.1)
23.2
Consent of MSCM LLP, independent registered public accounting firm
24
Power of Attorney (included on signature page hereto)
* Management contract or management compensatory plan or arrangement.
(1)
In the case of incorporation by reference to documents filed by the Registrant under the Exchange Act, the Registrant's file number under the Exchange Act is 000-25169.
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