Nine Months Ended September 30, 2003

                        (in thousands, except share data)

                                                                                                                         Total
                                            Number of        Common    Additional        Deferred    Accumulated      Stockholders'
                                          Common Shares      Stock   Paid-in Capital   Compensation    Deficit      Equity (Deficit)
                                          -------------      -----   ---------------   ------------    -------      ----------------
                                                                                                            
Balances at December 31, 2002                5,058,484       $  152     $  93,804          $ --        $(101,450)       $ (7,494)
Shares issued under the Employee                                                      
  Stock Purchase Plan                            8,515           --             2            --               --               2
Stock bonuses issued in lieu of                                                       
  cash to employees, vendors and             5,929,381          178         3,477            --               --           3,655
  consultants                                                                         
Shares issued through private               28,333,333          850        11,650            --               --          12,500
  placement                                                                           
Shares issued upon conversion of                                                      
  debentures, accrued interest and                                                    
  delayed registration penalties            82,867,423        2,486         5,689            --               --           8,175
Shares issued upon exercise of                                                        
  warrants and options                      13,669,258          410         4,067            --               --           4,477
Costs for issuance of convertible                                                     
  notes, debentures and private                     --           --          (678)           --               --            (678)
  placements                                                                          
Fair value of warrants and                                                            
  beneficial conversion feature                                                       
  granted in conjunction with                       --           --         2,236            --               --           2,236
  issuance of convertible debentures                                                  
Write off of beneficial conversion                                                    
  feature and deferred offering                                                       
  costs upon conversion of notes                    --           --          (289)           --               --            (289)
  and debentures                                                                      
Repurchase of beneficial conversion                 --           --          (128)           --               --            (128)
  feature                                                                             
Dividend requirements of                                                              
  mandatorily redeemable Series A                   --           --           (90)           --               --             (90)
  preferred stock                                                                     
Compensation relating to granting                                                     
  of stock options                                  --           --         3,828           (24)              --           3,804
Amortization of deferred                            --           --            --             3               --               3
  compensation                                                                        
Net loss                                            --           --            --            --          (21,490)        (21,490)
                                           -----------       ------     ---------          ----        ---------        --------
Balances at September 30, 2003             135,866,394       $4,076     $ 123,568          $(21)       $(122,940)       $  4,683
                                           ===========       ======     =========          ====        =========        ========

          See accompanying notes to consolidated financial statements.