1999              1998
                                                                          ------------      ------------
Cash flows from operating activities:
     Net (loss) from continuing operations                                $(13,013,051)     $(10,378,435)
     Adjustments to reconcile net (loss) to
       net cash (used in) operating activities:
         Net gain from sale of affiliated business                            (325,323)               --
         Decrease in accounts receivable                                        71,347           154,118
         Depreciation and Amortization                                         234,009           183,307
         Increase in accounts payable and accrued expenses                   1,474,864         1,000,105
         (Increase) decrease in other assets                                    65,172          (116,115)
                                                                          ------------      ------------
                  Net cash (used in) operating activities                  (11,492,982)       (9,157,021)
                                                                          ------------      ------------


Cash flows from investing activities:
     (Acquisition) of equipment                                               (341,615)          (14,924)
      (Investment) in affiliate company                                        706,309          (380,986)
                                                                          ------------      ------------

                  Net cash provided by (used in) investing activities          364,694          (395,910)
                                                                          ------------      ------------

Cash flows from financing activities:
     (Repayment of) leases payable                                             (18,790)          (82,978)
     Cash proceeds from (repayment of) loans from stockholders                  34,292         4,044,024
     Issuance of common stock                                                  366,400         1,211,265
     Preferred stock subscription received                                     620,000                --
     Sale of convertible debentures                                          2,902,000           875,000
     Acquisition of treasury stock                                                  --          (125,000)
     (Repayment of) notes payable                                              (54,722)         (121,205)
     (Increase) decrease in cash collateral                                                       95,000
                                                                          ------------      ------------
                  Net cash provided by financing activities                  3,849,180         5,895,806
                                                                          ------------      ------------

(Decrease) in cash                                                          (7,279,106)       (3,657,126)
Cash, beginning of period                                                           --                --
Non-cash transactions                                                        7,279,106         3,657,126
                                                                          ------------      ------------

Cash, end of period                                                       $         --      $         --
                                                                          ============      ============

Schedule of non-cash operating, financing and investing activities:
       Net gain from discontinued operation                                   (161,988)       (1,443,816)
       Net gain on disposal of discontinued operations                          92,697
       Repayment of stockholder loan                                        (1,000,000)       (2,752,244)
       Issuance of common stock                                             11,825,397         7,925,185
       Stock subscription receivable                                                             (72,000)
       Conversion of debentures into common stock                           (3,477,000)               --
                                                                          ------------      ------------
                  Increase in non-cash items                              $  7,279,106      $  3,657,125
                                                                          ============      ============

Interest paid                                                             $    214,052      $    201,867
                                                                          ============      ============

Income taxes paid                                                         $         --      $         --
                                                                          ============      ============