THREE MONTHS ENDED           SIX MONTHS ENDED
                                                                    JULY 31,                   JULY 31,
                                                           ------------------------  ----------------------------
                                                              1996         1997          1996           1997
                                                           -----------  -----------  -------------  -------------
Cash flows from operating activities:
  Net loss.............................................  $  (946,016) $  (617,050) $  (1,240,495) $  (1,130,466)
  Adjustments to reconcile net loss to net cash
    provided by operating activities:
  Depreciation.........................................        1,809        1,809          3,618          3,619
  Common stock issued for services.....................                   144,000         75,000        169,000
  Common stock issued for litigation settlement........                                                  57,423
Changes in assets and liabilities:
  Other assets.........................................                     1,556                        (3,364)
  Unearned revenue.....................................       20,000                      20,000
  Accounts payable and accrued expenses................     (258,639)    (358,982)        20,502       (161,906)
                                                           -----------  -----------  -------------  -------------
Net cash used in operating activities..................   (1,182,846)    (828,667)    (1,121,375)    (1,065,694)
                                                           -----------  -----------  -------------  -------------
Net cash flows used by investing activities:
  Purchase of property and equipment...................                   (12,000)                      (12,000)
                                                           -----------  -----------  -------------  -------------
Cash flows from financing activities:
  Issuance of common stock.............................    1,393,500                   1,415,500
  Loan receivable, officer.............................                    22,189                        22,189
  Proceeds from convertible notes payable..............                 1,000,000                     1,000,000
  Proceeds (repayment) of notes payable................     (100,000)       2,000                       162,000
  Note payable shareholder/officer.....................                   (50,000)                       30,000
                                                           -----------  -----------  -------------  -------------
Net cash provided by financing activities..............    1,293,500      974,189      1,415,500      1,214,189
                                                           -----------  -----------  -------------  -------------
Net increase in cash...................................      110,654      133,522        294,125        136,495
Cash, beginning balance................................      188,744        4,492          5,273          1,519
                                                           -----------  -----------  -------------  -------------
Cash, ending balance...................................  $   299,398  $   138,014  $     299,398  $     138,014
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Supplemental disclosure of cash flow information:
  Cash paid for interest...............................  $     1,343  $    10,500  $       1,343  $      10,500
                                                           -----------  -----------  -------------  -------------
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Supplemental disclosures of non-cash financing
  activities:
  Issuance of common stock for services................  $       -0-  $   144,000  $      75,000  $     169,000
                                                           -----------  -----------  -------------  -------------
                                                           -----------  -----------  -------------  -------------
  Issuance of common stock for litigation settlement...  $       -0-  $       -0-  $         -0-  $      57,423
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