Working capital deficiency of nearly $2 million.
The Company has incurred significant losses and negative cash flow from
operations in each of the last three years and has an accumulated deficit of
$66,367,917 at September 30, 2003. At September 30, 2003 the Company had a
working capital deficiency of $1,927,425. Substantial portions of the losses are
attributable to marketing costs of the Company's new technologies and products
and substantial expenditures on research and development of technologies. The
Company's operating plans may require additional funds that may take the form of
debt or equity financings. There can be no assurance that any additional funds
will be available. The Company's ability to continue as a going concern is in
substantial doubt and is dependent upon achieving a profitable level of
operations and obtaining additional financing.