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<SEC-DOCUMENT>0000898430-03-002941.txt : 20030514
<SEC-HEADER>0000898430-03-002941.hdr.sgml : 20030514
<ACCEPTANCE-DATETIME>20030514144447
ACCESSION NUMBER:		0000898430-03-002941
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20030331
FILED AS OF DATE:		20030514

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VYREX CORP
		CENTRAL INDEX KEY:			0000933972
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				880271109
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27866
		FILM NUMBER:		03698502

	BUSINESS ADDRESS:	
		STREET 1:		2159 AVENIDA DE LA PLAYA
		CITY:			LA JOLLA
		STATE:			CA
		ZIP:			92037
		BUSINESS PHONE:		6194544462

	MAIL ADDRESS:	
		STREET 1:		2159 AVENIDA DE LA PLAYA
		CITY:			LA JOLLA
		STATE:			CA
		ZIP:			92037
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>d10qsb.htm
<DESCRIPTION>FORM 10-QSB
<TEXT>
<HTML><HEAD>
<TITLE>Form 10-QSB</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
  <hr size="3" width="100%" color="black" noshade> <p align="center"><font style="font-size:18pt"><b>UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION</b></font><br><font style="font-size:12pt"><b>Washington D.C.
20549</b></font></p> <hr size="1" width="17%" color="black" noshade> <p align="center"><font style="font-size:18pt"><b>FORM 10-QSB</b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"><b></b></font></td>
<td width="95%" valign="top"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td valign="top"><font face="wingdings" style="font-size:12pt"><b>x</b></font></td>
<td valign="top"><font style="font-size:12pt"><b>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></td> </tr>
<tr>
<td valign="top">&nbsp;</td>
<td valign="top">&nbsp;</td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;<b>For the Quarterly Period ended March 31, 2003</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font face="wingdings" style="font-size:12pt"><b>o</b></font></td>
<td valign="top"><font style="font-size:12pt"><b>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></td> </tr> </table> <p align="center"><font style="font-size:10pt"><b>Commission file number:
000-27866</b></font></p> <hr size="1" width="17%" color="black" noshade> <p align="center"><font style="font-size:24pt"><b>VYREX CORPORATION</b></font><br><font style="font-size:8pt"><b>(Name of small business issuer as specified in its
charter)</b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="40%" align="center" valign="top"><font style="font-size:12pt"><b></b></font></td>
<td width="20%" align="center" valign="top"><font style="font-size:12pt"><b></b></font></td>
<td width="40%" align="center" valign="top"><font style="font-size:12pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:10pt"><b>Nevada</b></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:10pt"><b>88-0271109</b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>(State or other jurisdiction of <br>incorporation or organization)</b></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>(IRS Employer Identification No.)</b></font></td> </tr> </table> <p align="center"><font style="font-size:10pt"><b>2159 Avenida de la Playa, La Jolla, California,
92037<br></b></font><font style="font-size:8pt"><b>(Address of principal executive offices)</b></font></p> <p align="center"><font style="font-size:10pt"><b>(858) 454-4446<br></b></font><font style="font-size:8pt"><b>(Issuer&#146;s telephone number
including area code)</b></font></p> <hr size="1" width="17%" color="black" noshade> <p><font style="font-size:10pt">Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12
months (or for shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</font></p> <p><font style="font-size:10pt">Yes</font> <font face="wingdings"
style="font-size:10pt">x</font><font style="font-size:10pt"></font><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</font> <font face="wingdings" style="font-size:10pt">o</font></p> <p align="center"><font
style="font-size:10pt">Applicable Only to Issuers Involved in Bankruptcy<br>Proceedings During the Preceding Five Years</font></p> <p><font style="font-size:10pt">Check whether the registrant filed all documents and reports required to be filed by
Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan by a court.</font></p> <p><font style="font-size:10pt">Yes</font> <font face="wingdings" style="font-size:10pt">o</font><font
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</font> <font face="wingdings" style="font-size:10pt">o</font></p> <p align="center"><font style="font-size:10pt">Applicable Only to Corporate Issuers</font></p> <p><font
style="font-size:10pt">State the number of shares outstanding of each of the issuer&#146;s classes of common equity, as of latest practicable date:</font></p> <p><font style="font-size:10pt">As of March 31, 2003, there are 8,492,867 shares of common
stock outstanding and warrants to purchase 325,000 shares of common stock outstanding.</font></p> <p><font style="font-size:10pt">Transitional Small Business Disclosure Format</font></p> <p><font style="font-size:10pt">Yes</font> <font
face="wingdings" style="font-size:10pt">o</font><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</font> <font face="wingdings" style="font-size:10pt">x</font></p> <hr size="3" width="100%" color="black" noshade>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt"><b>Vyrex Corporation<br>Index to Form 10-QSB</b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="6%" valign="top"><font style="font-size:10pt"><b></b></font></td>
<td width="5%" valign="top"><font style="font-size:10pt"><b></b></font></td>
<td width="87%" valign="top"><font style="font-size:10pt"><b></b></font></td>
<td width="2%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt"><b>Part I </b></font></td>
<td valign="top" colspan="2"><font style="font-size:10pt"><b>
<a href="#tx864_1">Financial Information</a></b></font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Item 1 -
<a href="#tx864_2">Financial Statements</a></font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%">&nbsp;</td>
<td valign="top" width="4%">&nbsp;</td>
<td valign="top" width="88%">&nbsp;</td>
<td align="right" valign="bottom" width="2%">&nbsp;</td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">
<a href="#tx864_3">Condensed Balance Sheets</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">3</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">
<a href="#tx864_4">Condensed Statements of Operations</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">4</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">
<a href="#tx864_5">Condensed Statements of Cash Flows</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">5</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">
<a href="#tx864_6">Notes to Condensed Financial Statements</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">6</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Item 2 -
<a href="#tx864_7">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">8</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Item 3 -
<a href="#tx864_8">Controls and Procedures</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">9</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt"><b>Part II </b></font></td>
<td valign="top" colspan="2"><font style="font-size:10pt"><b>
<a href="#tx864_9">Other Information</a></b></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">9</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Item 1 -
<a href="#tx864_10">Legal Proceedings</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">9</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Item 2 -
<a href="#tx864_11">Changes in Securities</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">9</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Item 3 -
<a href="#tx864_12">Defaults upon Senior Securities</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">10</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Item 4 -
<a href="#tx864_13">Submission of Matters to a Vote of Security Holders</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">10</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Item 5 -
<a href="#tx864_14">Other Information</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">10</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Item 6 -
<a href="#tx864_15">Exhibits and Reports on Form 8-K</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">10</font></td> </tr>
<tr>
<td valign="top" width="6%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="4%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" width="88%"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" width="2%"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" colspan="3"><font style="font-size:10pt">
<a href="#tx864_16">Signatures</a></font></td>
<td align="right" valign="bottom" width="2%"><font style="font-size:10pt">10</font></td> </tr> </table>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt"><b>
<a name="tx864_1"></a>PART I&nbsp;&nbsp;Financial Information</b></font></p> <p><font style="font-size:10pt"><b>
<a name="tx864_2"></a>Item 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements </b></font></p> <p align="center"><font style="font-size:10pt"><b>Vyrex Corporation<br></b>(a development stage enterprise)<br>
<a name="tx864_3"></a><b>Condensed Balance Sheets</b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="2%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="73%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="3%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>Mar 31,2003</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>Dec 31,2002</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b></b></font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align="right" valign="bottom"><div align="center"><font style="font-size:8pt">Unaudited</font></div> </td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align="right" valign="bottom"><div align="center"><font style="font-size:8pt">(Note 1)</font></div> </td>
<td valign="bottom">&nbsp;</td> </tr>
<tr>
<td valign="bottom" colspan="3" bgcolor="#cceeff"><font style="font-size:10pt"><b>Assets</b></font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff">&nbsp;</td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff">&nbsp;</td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Cash and cash equivalents</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">12,175</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">3,026</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2" bgcolor="#cceeff"><font style="font-size:10pt">Accounts receivable</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">22,500</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">80,000</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">Total assets</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">34,675</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">83,026</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3" bgcolor="#cceeff"><font style="font-size:10pt"><b>Liabilities and stockholders&#146; deficiency</b></font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Current liabilities:</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2" bgcolor="#cceeff"><font style="font-size:10pt">Accounts payable and accrued liabilities</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">76,289</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">78,556</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">Total current liabilities</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">76,289</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">78,556</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Notes payable to related parties</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3" bgcolor="#cceeff"><font style="font-size:10pt">Notes payable, net</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">134,500</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">160,000</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">Total liabilities</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">215,789</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">243,556</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3" bgcolor="#cceeff"><font style="font-size:10pt">Commitments and contingencies</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Stockholders&#146; deficiency:</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2" bgcolor="#cceeff"><font style="font-size:10pt">Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><div style="margin-left:20px; text-indent:-20px"><font style="font-size:10pt">Common stock, $.001 par value; 50,000,000 shares authorized; 8,492,867 issued and outstanding </font></div></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,493</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,493</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2" bgcolor="#cceeff"><font style="font-size:10pt">Additional paid-in capital</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">13,080,025</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">13,074,025</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Deficit accumulated during the development stage</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(13,269,632</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(13,243,048</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">Total stockholders&#146; deficiency</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">(181,114</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">)</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">(160,530</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">Total liabilities and stockholders&#146; deficiency</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">34,675</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">83,026</font></td>
<td valign="bottom" bgcolor="#cceeff"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"> <hr size="3" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p><font style="font-size:10pt"><i>See accompanying notes.</i></font></p> <p align="center"><font style="font-size:10pt">3</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt"><b>Vyrex Corporation<br></b></font><font style="font-size:10pt"><b> </b>(a development stage enterprise)</font></p> <p align="center"><font style="font-size:10pt">
<a name="tx864_4"></a>Condensed Statements of Operations<br>(Unaudited)</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="2%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="60%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="3%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="3%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><font style="font-size:8pt"><b>Three Months ended</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>Cumulative </b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>Mar 31, 2003</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>Mar 31, 2002</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>from Inception</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b></b></font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Licensing and royalty revenue</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">22,500</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">598,199</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Operating expenses:</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Research and development</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,108</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,243</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">6,443,480</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Marketing and selling</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">258</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">437,630</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">General and administrative</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">42,861</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">36,185</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,995,867</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Total operating expenses</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">44,969</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">37,686</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">12,876,977</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Loss from operations</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(22,469</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(32,686</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(12,278,778</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Other income (expense):</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Interest income</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">116</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">177</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">475,170</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Loss on disposal of fixed assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(12,605</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Interest expense</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(4,231</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(3,279</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(103,519</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Charge from issuance of stock options for bridge financing </font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(1,349,900</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Total other expense</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(4,115</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(3,102</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(990,854</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Net loss</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(26,584</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(35,788</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(13,269,632</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Net loss per share &#150; basic </font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(0.00</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(0.00</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Weighted-average number of common shares outstanding</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,492,867</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,387,867</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p><font style="font-size:10pt"><i>See accompanying notes.</i></font></p> <p align="center"><font style="font-size:10pt">4</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <p align="center"><font style="font-size:10pt"><b>Vyrex Corporation</b><br>(a development stage enterprise)</font></p> <p align="center"><font style="font-size:10pt">
<a name="tx864_5"></a>Condensed Statements of Cash Flows<br>(Unaudited)</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="2%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="60%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="3%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="3%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><font style="font-size:8pt"><b>Three Months ended</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>Cumulative </b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>Mar 31, 2003</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>Mar 31, 2002</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>From Inception</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b></b></font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt"><b>Operating activities</b></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Net loss</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(26,584</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(35,788</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(13,269,632</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Adjustments to reconcile net loss to net cash provided by (used in) operating activities:</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Depreciation, amortization and impairment charges</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">336,329</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Accretion of debt discount</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">500</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">500</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Interest receivable</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">3,506</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Loss on disposal of fixed assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">13,664</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Issuance of compensatory notes, stock, stock options and warrants</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,302,512</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Changes in operating assets and liabilities:</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Accounts receivable and other assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">57,500</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">77,500</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Accounts payable and accrued liabilities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(2,267</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,352</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">639,830</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Deferred revenue</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(100,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Accrued interest on convertible debentures</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">9,041</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Net cash provided by (used in) operating activities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">29,149</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(31,436</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(9,986,750</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt"><b>Investing activities</b></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Purchase of short-term investments </font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(8,440,442</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Sale of short-term investments</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,467,931</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Purchases of fixed assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(209,595</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Proceeds on sale of fixed assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">10,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Patent, trademark and copyrights costs</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(133,519</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Other assets, including notes receivable from related parties</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(4,202</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Net cash used in investing activities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(309,827</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt"><b>Financing activities</b></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Net proceeds from issuance of common stock</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">7,889,808</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Exercise of stock options and sale of options</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">975,100</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Exercise of warrants</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">15,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">25,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Proceeds from short-term loan</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">867,730</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Proceeds from note payable</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">140,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">731,114</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Repayment of note payable</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(160,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(180,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Advances from potential investors</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">100,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Repayment of advances</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(100,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Net cash provided by (used in) financing activities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(20,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">15,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">10,308,752</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Net increase (decrease) in cash and cash equivalents</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">9,149</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(16,436</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">12,175</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Cash and cash equivalents, beginning of period</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">3,026</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">60,003</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="3"><font style="font-size:10pt">Cash and cash equivalents, end of period</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">12,175</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">43,567</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">12,175</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="10"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table><p><font style="font-size:10pt"><i>See accompanying notes.</i></font></p> <p align="center"><font style="font-size:10pt">5</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt"><b>Vyrex Corporation</b><br>(A Development Stage Enterprise)</font></p> <p align="center"><font style="font-size:10pt">
<a name="tx864_6"></a>Notes To Condensed Financial Statements<br>(Unaudited)</font></p> <p><font style="font-size:10pt"><b><i>(1)&nbsp;&nbsp;Basis of Presentation</i></b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"></font></td>
<td width="95%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">The accompanying condensed financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America for interim financial
information. Certain information and disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. In the opinion of the
Company's management, the unaudited financial statements contain all adjustments necessary (consisting of normal recurring accruals) for a fair presentation of the Company&#146;s financial position as of March 31, 2003, and its results of operations
and cash flows for the three-month periods ended March 31, 2003 and 2002 and for the period from inception through March 31, 2003. The results of operations for the three months ended March 31, 2003 are not necessarily indicative of the results to
be expected for the full year. For further information, refer to the financial statements and notes thereto included in Vyrex&#146;s Form 10-KSB for the year ended December 31, 2002. </font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">The accompanying condensed financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company&#146;s
assets and the satisfaction of its liabilities in the normal course of business. As of March 31, 2003, the Company had an accumulated deficit of $13,269,632, a stockholders&#146; deficiency of $181,114 and negative working capital of $41,614. Due to
the Company&#146;s recurring losses and stockholders&#146; deficiency, there can be no assurance that the Company will be able to obtain additional operating capital, which may impact the Company&#146;s ability to continue as a going concern. The
accompanying condensed financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible
inability of the Company to continue as a going concern.</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">The Company continues to seek additional collaborative or other arrangements with larger pharmaceutical and nutraceutical companies, under which such companies would provide additional capital to the
Company in exchange for exclusive or non-exclusive licenses or other rights to certain of the technologies and products the Company is developing. Competition for corporate partnering arrangements with major pharmaceutical and nutraceutical
companies is intense, with a large number of biopharmaceutical companies attempting to arrive at such arrangements. Accordingly, there can be no assurance that an agreement will arise in a timely manner, or at all, or that any agreement that may be
reached will successfully reduce the Company&#146;s short-term or long-term funding requirements.</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">6</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"></font></td>
<td width="95%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">The Company&#146;s major activities through March 31, 2003 have been limited to raising funds for outsourcing research and development on its novel technology, seeking additional collaborative partners
through exclusive or non-exclusive licensing of its technology and continuing to work with its current partners to generate additional revenues based on existing licensing and royalty agreements. These activities have not generated any significant
revenues; accordingly, the Company has been in the development stage since its inception. Successful completion of the Company&#146;s development program and its transition, ultimately, to attaining profitable operations is dependent upon obtaining
additional financing adequate to fulfill its research and development activities, and achieving a level of revenue adequate to support the Company&#146;s cost structure. There can be no assurance that the Company will be successful in these areas.
To supplement its existing resources, the Company will require additional capital through the sale of debt or equity. There can be no assurance that such capital will be available on favorable terms, or at all, and if additional funds are raised by
issuing equity securities, dilution to existing stockholders is likely to result. </font></td> </tr> </table> <p><font style="font-size:10pt"><b>(2)&nbsp;&nbsp;Notes Payable</b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"></font></td>
<td width="95%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">On March 10, 2003, the Company obtained a commitment from a private investor to loan the Company $200,000 in exchange for the issuance of a convertible note with an interest rate of 10% per annum.
Interest is to be paid quarterly with the principal due and payable at the end of the third year. The investor has the option to convert the principal amount into common stock at a price of $0.25 per share during the first year, $0.50 the second
year and $0.75 the third year. The investor was issued warrants, exercisable within three years from the date of issuance, entitling the investor to purchase 100,000 shares of common stock at an exercise price of $0.11 per share. At March 31, 2003,
$140,000 had been received with an additional $60,000 received in April 2003. The funds were used to pay off a portion of the 8% notes payable which had a principal amount due of $160,000 at December 31, 2002, (see Note 9 in the Form 10-KSB) and
will be utilized for the repayment of the $5,000 related party note outstanding at March 31, 2003 with the remainder used for general operating purposes. The warrants had a fair value of $6,000 as of the date of issuance; accordingly, the Company
discounted the note by $6,000 which was added to additional paid-in capital. The Company is accreting the discount on a straight-line basis over the term of the note. The Company recognized $500 additional interest expense related to the accretion
of this debt discount for the quarter ended March 31, 2003.</font></td> </tr> </table> <p><font style="font-size:10pt"><b>(3)&nbsp;&nbsp;Stock-Based Compensation</b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"><b></b></font></td>
<td width="95%" valign="top"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">As explained in Note 8 in the Form 10-KSB, the Company accounts for stock options granted to employees based on their intrinsic values under the recognition and measurement principles of APB Opinion No.
25, &#147;Accounting for Stock Issued to Employees, and Related Interpretations&#148;, and has adopted the disclosure-only provisions of Statement of Financial Accounting Standards (SFAS) No. 123, &#147;Accounting for Stock-Based Compensation&#148;,
and the provisions of Statement of Financial Accounting Standards No. 148, &#147;Accounting for Stock-Based Compensation-Transition and Disclosure-an amendment of FASB Statement No. 123&#148;. Since the exercise price of all of the options granted
by the Company to its employees has been equal to or greater than fair value, the Company has not recognized any earned or unearned compensation costs in its financial statements in connection with those options. The Company&#146;s historical net
loss and basic net loss per share, and pro forma net loss and basic net loss per share, for the three months ended March 31, 2003 and 2002 assuming compensation cost had been determined based on the fair value of all options at the respective dates
of grant determined using a pricing model consistent with the provisions of SFAS 123 are set forth below:</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">7</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<table border="0" cellspacing="0" width="100%">
<tr>
<td width="77%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="3%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="6"><font style="font-size:8pt"><b>Three Months Ended<br>March 31,</b></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>2003</b></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>2002</b></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Net loss - as reported</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(26,584</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(35,788</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Stock-based employee compensation expense assuming a fair value based method had been used for all awards </font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(9,125</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(9,500</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Net loss &#150; pro forma</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(35,709</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(45,288</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="6"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Basic loss per share &#150; as reported</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(.00</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(.00</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Basic loss per share &#150; pro forma</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(.00</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt"> (.00</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p><font style="font-size:10pt"><b>
<a name="tx864_7"></a>Item 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</b></font></p> <p><font style="font-size:10pt">This report on Form 10-QSB contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. This report
should be read in conjunction with the Company&#146;s annual report on Form 10-KSB for the year ended December 31, 2002.</font></p> <p><font style="font-size:10pt"><b><i>Results of Operations</i></b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"></font></td>
<td width="95%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt"><b>Three months ended March 31, 2003 and March 31, 2002</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Royalty income increased $18,000 to $23,000 in the three months ended March 31, 2003 compared to $5,000 in the same period of 2002. Royalty income is comprised of our boron and carnochrome compounds
licensed by the FutureCeutical division of Van Drunen Farms. </font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">General and administrative expenses increased $7,000 to $43,000 in the current period, compared to $36,000 for the same period in 2002. First quarter expenses were limited to maintenance of patents and
general office expenses such as accounting fees, utility expenses, telephone expenses, rent and postage.</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Net loss decreased $9,000 to $27,000, compared to $36,000 for the same period during 2002. Basic and diluted loss per share remained the same at $0.00 in the three months ended March 31, 2003 and
2002.</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">8</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <p><font style="font-size:10pt"><i><b>Liquidity and Capital Resources</b></i></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"></font></td>
<td width="95%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">The Company has financed its operations since inception solely through the sales of debt and equity securities. As of March 31, 2003, the Company had negative working capital of $42,000. Net cash
provided by operating activities during the three months ended March 31, 2003 was $29,000, compared to net cash used in operating activities of $31,000 for the same period during 2002.</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">On March 10, 2003, the Company obtained a commitment from a private investor to loan the Company $200,000 in exchange for the issuance of a convertible note with an interest rate of 10% and warrants,
exercisable within three years, entitling the lender to purchase 100,000 shares of common stock at an exercise price of $0.11 per share. The loan principal is due in March 2006. At March 31, 2003, $140,000 had been received; the remaining $60,000
was received in April 2003. The proceeds were used to repay outstanding debt and for working capital purposes.</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">There can be no assurance that any further revenues will be realized in 2003 or that they will be significant and therefore without additional financing the Company may be unable to continue as a going
concern. The Company is actively pursuing collaborations with potential partners in both the pharmaceutical and nutraceutical divisions with the objective of raising financing to enable the Company to continue operations. At March 31, 2003, the
Company does not have any commitments for additional financing other than the balance of the proceeds from the note payable discussed above. To date the Company has no prospects for merger or acquisition. The Company does not have any lease or other
commitments. The Company does not have an existing bank line of credit or other form of revolving or renewable credit facility. There can be no assurance the Company will generate significant revenues during 2003 to continue its operations, or that
funds will be available through the public or private markets.</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">The Company believes but cannot assure that its current cash reserves and other resources will fund the business through at least March 31, 2004. The Company does not anticipate having significant
revenues in the foreseeable future and will likely be required to raise additional funds to continue operations. There can be no assurance that additional funds will be available.</font></td> </tr> </table> <p><font style="font-size:10pt"><b>
<a name="tx864_8"></a>Item 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Controls and Procedures</b></font></p> <p><font style="font-size:10pt">Within 90 days prior to the date of this quarterly report on Form 10-QSSB for the first quarter ended March 31, 2003,
the Company carried out an evaluation, under the supervision and with the participation of the Company&#146;s management, including the Company&#146;s Chief Executive Officer and President, of the effectiveness of the design and operation of the
Company&#146;s disclosure controls and procedures pursuant to Rule 13a-14 of the Securities Exchange Act of 1934. Based upon that evaluation, the principal executive officer concluded that the Company's disclosure controls and procedures are
effective in timely alerting them to material information relating to the Company, required to be included in the Company&#146;s periodic SEC filings. There were no significant changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of our most recent evaluation. </font></p> <p align="center"><font style="font-size:10pt"><b>
<a name="tx864_9"></a>PART II&nbsp;&nbsp;Other Information</b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"></font></td>
<td width="5%" valign="top"><font style="font-size:10pt"></font></td>
<td width="90%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top" nowrap><font style="font-size:10pt"><b>
<a name="tx864_10"></a>Item 1.</b></font></td>
<td valign="top" colspan="2"><font style="font-size:10pt"><b>Legal Proceedings</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Not applicable</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt"><b>
<a name="tx864_11"></a>Item 2.</b></font></td>
<td valign="top" colspan="2"><font style="font-size:10pt"><b>Changes in Securities</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Not applicable</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt"><b>
<a name="tx864_12"></a>Item 3.</b></font></td>
<td valign="top" colspan="2"><font style="font-size:10pt"><b>Defaults upon Senior Securities</b></font></td> </tr> </table> <p align="center"><font style="font-size:10pt">9</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"></font></td>
<td width="2%" valign="top"><font style="font-size:10pt"></font></td>
<td width="97%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Not applicable</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" nowrap><font style="font-size:10pt"><b>
<a name="tx864_13"></a>Item 4.</b></font></td>
<td valign="top" colspan="2"><font style="font-size:10pt"><b>Submission of Matters to a Vote of Security Holders</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Not applicable</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt"><b>
<a name="tx864_14"></a>Item 5.</b></font></td>
<td valign="top" colspan="2"><font style="font-size:10pt"><b>Other Information</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Not applicable</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt"><b>
<a name="tx864_15"></a>Item 6.</b></font></td>
<td valign="top" colspan="2"><font style="font-size:10pt"><b>Exhibits and Reports on Form 8-K</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">(a)</font></td>
<td valign="top"><font style="font-size:10pt">The Company did not file any reports on Form 8-K during the three months ended March 31, 2003</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">(b)</font></td>
<td valign="top"><font style="font-size:10pt">Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.</font></td> </tr> </table> <p align="center"><font style="font-size:10pt"><b>
<a name="tx864_16"></a>SIGNATURES</b></font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="50%" valign="top"><font style="font-size:10pt"></font></td>
<td width="2%" align="right" valign="top"><font style="font-size:10pt"></font></td>
<td width="48%" align="center" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">V<small>YREX</small> C<small>ORPORATION</small></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Registrant</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="top"><font style="font-size:10pt">By:</font></td>
<td align="center" valign="top"><font style="font-size:10pt">/s/ G. D<small>ALE</small> G<small>ARLOW<i></i></small></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><hr size="1" width="100%" color="black" noshade></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>G. Dale Garlow,</b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>Chief Executive Officer</b></font></td> </tr> </table> <p align="center"><font style="font-size:10pt">10</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt"><b>CERTIFICATION PURSUANT TO<br>18 USC, SECTION 1350, AS ADOPTED PURSUANT TO<br>SECTIONS 302 AND 906 OF THE SARBANES-OXLEY ACT OF 2002</b></font></p> <p><font
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Quarterly Report of Vyrex Corporation (the &#147;Company&#148;) on Form 10-QSB for the period ended March 31, 2003, as filed with the Securities and Exchange Commission on
the date hereof (the &#147;Report&#148;), I, G. Dale Garlow, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002,
that:</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="top"></td>
<td width="3%" valign="top"><font style="font-size:10pt"></font></td>
<td width="94%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">(1)</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">I have reviewed the report;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">(2)</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">To the best of my knowledge, the Report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of
the circumstances under which such statements were made, not misleading: </font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">(3)</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">To the best of my knowledge, the financial statements, and other financial information included in the Report, fairly present in all material respects the financial condition and results of
operations of the Company as of, and for, the periods presented in the Report;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">(4)</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">I:</font></td> </tr>
<tr>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">(a)</font></td>
<td valign="top"><font style="font-size:10pt">am responsible for establishing internal controls;</font></td> </tr>
<tr>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">(b)</font></td>
<td valign="top"><font style="font-size:10pt">have designed such internal controls to ensure that material information relating to the Company is made known to me, particularly during the period of January 1, 2003 through March 31, 2003;</font></td>
</tr>
<tr>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">(c)</font></td>
<td valign="top"><font style="font-size:10pt">have evaluated the effectiveness of the Company's internal controls as of a date within 90 days prior to the Report; and</font></td> </tr>
<tr>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">(d)</font></td>
<td valign="top"><font style="font-size:10pt">have presented in the Report my conclusions about the effectiveness of my internal controls based on my evaluation of that date;</font></td> </tr>
<tr>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">(5)</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">I have disclosed to the Company's auditors and the board of directors:</font></td> </tr>
<tr>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">(a)</font></td>
<td valign="top"><font style="font-size:10pt">all significant deficiencies in the design or operation of internal controls which could adversely affect the Company's ability to record, process, summarize, and report financial data and have
identified for the Company's auditors any material weaknesses in internal controls; and</font></td> </tr>
<tr>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">(b)</font></td>
<td valign="top"><font style="font-size:10pt">any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal controls;</font></td> </tr>
<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td> </tr>
<tr>
<td valign="top"></td>
<td valign="top" colspan="2"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">(6)</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">I have indicated in the Report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date
of my evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses; and</font></td> </tr>
<tr>
<td valign="top"></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">(7)</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934.</font></td> </tr> </table> <p><font style="font-size:10pt">Date: May 14,
2003</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="30%" align="center" valign="top"><font style="font-size:10pt"></font></td>
<td width="40%" valign="top"><font style="font-size:10pt"></font></td>
<td width="30%" align="center" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:10pt">/s/ G. D<small>ALE</small> G<small>ARLOW</small></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:10pt">/s/ G. D<small>ALE</small> G<small>ARLOW</small></font></td> </tr>
<tr>
<td align="center" valign="top"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="top">&nbsp;</td>
<td align="center" valign="top"> <hr size="1" width="100%" color="black" noshade> </td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>G. Dale Garlow, President</b></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>G. Dale Garlow, Chief Executive Officer</b></font></td> </tr> </table> <p align="center"><font style="font-size:10pt">11</font></p>
</BODY></HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>dex991.htm
<DESCRIPTION>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
<TEXT>
<HTML><HEAD>
<TITLE>Certification pursuant to 18 U.S.C. section 1350</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
  <p align="right"><font style="font-size:10pt">Exhibit 99.1</font></p> <p align="center"><font style="font-size:10pt"><b>CERTIFICATION PURSUANT TO <br>18 U.S.C. SECTION 1350, <br>AS ADOPTED PURSUANT TO <br>SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002 </b></font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Quarterly Report of Vyrex Corporation (the &#147;Company&#148;) on Form&nbsp;10-QSB for the period ending March
31, 2003 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, G. Dale Garlow, Chief Executive Officer of the Company, certify, pursuant to 18&nbsp;U.S.C. &#167;1350, as adopted pursuant to &#167;906 of
the Sarbanes-Oxley Act of 2002, that: </font></p>
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<td valign="top"><font style="font-size:10pt">(1)</font></td>
<td valign="top"><font style="font-size:10pt">The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </font></td> </tr>
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<td valign="top"><font style="font-size:10pt">(2)</font></td>
<td valign="top"><font style="font-size:10pt">The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </font></td> </tr> </table> <p></p>
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<td align="center" valign="top"><font style="font-size:10pt">/s/ G. D<small>ALE</small> G<small>ARLOW<i></i></small></font></td>
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<td align="center" valign="top"><font style="font-size:8pt"><b>G. Dale Garlow,</b></font></td>
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<td align="center" valign="top"><font style="font-size:8pt"><b>Chief Executive Officer</b></font></td>
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<td align="center" valign="top"> <div align="left"><font style="font-size:10pt">May 14, 2003</font></div> </td>
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