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TEXAS	76-0273345
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

 

3006 Longhorn Blvd., Suite 107
Austin, Texas	78758
(Address of principal executive offices)	(Zip Code)

 

(512) 339-5020

(Registrant's telephone number, including area code)

 

 

 

[X]

Yes

[  ]

No

 

 

[X]

Yes

[  ]

No

..

 

 

 

 

Part I.  Financial Information				Page
	Item 1.  Financial Statements
		Consolidated Balance Sheets--March 31, 2005 and December 31, 2004		3
		Consolidated Statements of Operations--Three Months Ended March 31, 2005 and 2004		4
		Consolidated Statements of Cash Flows--Three Months Ended March 31, 2005 and 2004		5
		Notes to Consolidated Financial Statements		6
	Item 2.  Management’s Discussion and Analysis of Financial Condition  and Results of Operations			9
	Item 3.  Quantitative and Qualitative Disclosures about Market Risk			13
	Item 4.  Controls and Procedures			13
Part II.  Other Information
	Item 1. Legal Proceedings			14
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			14
	Item 6.  Exhibits			15
Signatures				16

 

 

 

 

 

ASSETS		(Unaudited) March 31, 2005			December 31, 2004
Current assets:
Cash and cash equivalents		$	2,943,277		$	901,585
Accounts receivable, trade - net of allowance for doubtful accounts			11,173			6,735
Prepaid expenses and other current assets			100,427			85,135
Total current assets			3,054,877			993,455
Property and equipment, net			130,050			141,373
Other assets			9,540			9,540
Total assets		$	3,194,467		$	1,144,368
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	272,640		$	140,597
Obligations under capital lease			21,975			21,430
Accrued liabilities			76,126			74,956
Deferred revenue			54,985			54,985
Total current liabilities			425,726			291,968
Obligations under capital lease			250			5,944
Total Liabilities			425,976			297,912
Commitments and contingencies			-			-
Stockholders' (deficit):
Convertible preferred stock, $1.00 par value, 2,000,000 shares authorized;             No shares issued and outstanding			-			-
Common stock, $.00l par value, 120,000,000 shares authorized,             98,667,547 and 97,246,422 shares issued and outstanding at             March 31, 2005 and December 31, 2004, respectively			98,668			97,246
Additional paid-in capital			84,212,430			80,822,625
Accumulated deficit			(81,542,607	)		(80,073,415	)
Total stockholders' equity			2,768,491			846,456
Total liabilities and stockholders' equity		$	3,194,467		$	1,144,368

 

 

 

 

 

		For  the Three Months Ended March 31,
		2005			2004
Revenues
Government contracts		$	18,367		$	65,880
Royalties			3,897			-
Other			46,551			11,778
Total Revenues			68,815			77,658
Research and Development			680,706			751,595
Selling, general and administrative expenses			860,902			443,925
Operating costs and expenses			1,541,608			1,195,520
Loss from operations			(1,472,793	)