uWink Inc. (UWKI)

[JimProfit]

                                              UWINK, INC. AND SUBSIDIARY 
                                         Consolidated Statements of Operations 
                                                      (Unaudited) 
  
  
                                                          Three month periods ended         Nine month periods ended 
                                                        -----------------------------     ---------------------------- 
                                                         October 2,      September 30,    October 2,      September 30, 
                                                            2007             2006            2007             2006 
                                                                          (Restated)                       (Restated) 
                                                        -----------      -----------      -----------      ----------- 
  
 NET SALES                                              $   673,335      $    35,720      $ 1,970,905      $   145,771 
  
 COST OF SALES                                              193,272            5,250          597,177          147,373 
                                                        -----------      -----------      -----------      ----------- 
       GROSS PROFIT / (LOSS)                                480,063           30,470        1,373,728           (1,601) 
                                                        -----------      -----------      -----------      ----------- 
  
 OPERATING EXPENSES 
       Selling, general and administrative expenses       1,501,148          863,845        5,046,382        2,046,714 
                                                        -----------      -----------      -----------      ----------- 
       TOTAL OPERATING EXPENSES                           1,501,148          863,845        5,046,382        2,046,714 
                                                        -----------      -----------      -----------      ----------- 
  
       LOSS FROM OPERATIONS                              (1,021,085)        (833,375)      (3,672,655)      (2,048,315) 
                                                        -----------      -----------      -----------      ----------- 
  
 OTHER INCOME (EXPENSE) 
       Other income                                             950            1,656              950           11,962 
       Beneficial conversion of debt                       (408,435)         (22,500)        (408,435)         (47,500) 
       Gain on settlement of debt                                --            2,497           58,076            5,873 
       Interest expense                                     (48,395)         (11,347)         (95,159)         (53,788) 
       Fair value of warrant liability                           --       (6,238,218)              --       (6,583,902) 
                                                        -----------      -----------      -----------      ----------- 
       TOTAL OTHER INCOME (EXPENSE)                        (455,880)      (6,267,912)        (444,568)      (6,667,355) 
                                                        -----------      -----------      -----------      ----------- 
  
       LOSS BEFORE PROVISION FOR INCOME TAXES            (1,476,966)      (7,101,287)      (4,117,223)      (8,715,670) 
  
 PROVISION FOR INCOME TAXES                                      --               --              800               -- 
                                                        -----------      -----------      -----------      ----------- 
  
       NET LOSS                                         $(1,476,966)     $(7,101,287)     $(4,118,023)     $(8,715,670) 
                                                        ===========      ===========      ===========      =========== 
  
 NET LOSS PER COMMON SHARE - BASIC & DILUTED            $     (0.23)     $     (1.51)     $     (0.63)     $     (2.10) 
                                                        ===========      ===========      ===========      =========== 
  
 WEIGHTED AVERAGE COMMON SHARES 
       OUTSTANDING - BASIC & DILUTED                      6,547,392        4,711,380        6,498,506        4,145,546 
                                                        ===========      ===========      ===========      =========== 
  
            Weighted average number of shares for dilutive securities has not been calculated because the effect of  
            dilutive securities is anti-dilutive 
  
            The accompanying notes are an integral part of these unaudited consolidated financial statements