Note 3 - Going Concern Matters	3 Months Ended
Mar. 31, 2015
Notes
Note 3 - Going Concern Matters	NOTE 3 - GOING CONCERN MATTERS The accompanying financial statements have been prepared in conformity with generally accepted accounting principles which contemplate our continuation as a going concern. During the three months ended March 31, 2015 we had limited revenues, incurred a net loss of 922,372$0.92 million, and had negative cash flows from operations of 159,471$0.16 million. In addition, we had an accumulated deficit of 92,339,080$92.3 million at March 31, 2015. In addition, we are in default on approximately $0.24 million of our convertible debentures and notes payable plus related accrued interest and have judgments payable related to the convertible debentures of approximately 1,295,920$1.3 million. In addition, in April, 2015 certain judgment holders placed a levy on all of our intellectual property, demanding that we turn over our patents, trade secrets, manufacturing methods and other intellectual property as discussed in Note 4. These factors raise substantial doubt about our ability to continue as a going concern. Recovery of our assets is dependent upon future events, the outcome of which is indeterminable. Our attainment of profitable operations is dependent upon our obtaining adequate debt or equity financing, developing products for commercial sale, and achieving a level of sales adequate to support our cost structure. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable to continue in existence. Our efforts to raise additional funds will continue during fiscal 2015 to fund our planned operations and research and development activities, through one or more debt or equity financings. Subsequent to March 31, 2015, we raised gross proceeds of $150,000 in a private placement of our common stock and warrants to accredited investors. See Note 8.

Note 3 - Going Concern Matters

3 Months Ended

Mar. 31, 2015

NOTE 3 - GOING CONCERN MATTERS

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles which contemplate our continuation as a going concern. During the three months ended March 31, 2015 we had limited revenues, incurred a net loss of 922,372$0.92 million, and had negative cash flows from operations of 159,471$0.16 million. In addition, we had an accumulated deficit of 92,339,080$92.3 million at March 31, 2015. In addition, we are in default on approximately $0.24 million of our convertible debentures and notes payable plus related accrued interest and have judgments payable related to the convertible debentures of approximately 1,295,920$1.3 million. In addition, in April, 2015 certain judgment holders placed a levy on all of our intellectual property, demanding that we turn over our patents, trade secrets, manufacturing methods and other intellectual property as discussed in Note 4. These factors raise substantial doubt about our ability to continue as a going concern.

Recovery of our assets is dependent upon future events, the outcome of which is indeterminable. Our attainment of profitable operations is dependent upon our obtaining adequate debt or equity financing, developing products for commercial sale, and achieving a level of sales adequate to support our cost structure. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable to continue in existence.

Our efforts to raise additional funds will continue during fiscal 2015 to fund our planned operations and research and development activities, through one or more debt or equity financings. Subsequent to March 31, 2015, we raised gross proceeds of $150,000 in a private placement of our common stock and warrants to accredited investors. See Note 8.