<SUBMISSION>
<ACCESSION-NUMBER>0001179350-08-000051
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>6
<PERIOD>20080930
<FILING-DATE>20081114
<DATE-OF-FILING-DATE-CHANGE>20081113
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AMERITYRE CORP
<CIK>0000945828
<ASSIGNED-SIC>3011
<IRS-NUMBER>870535207
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-50053
<FILM-NUMBER>081186609
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1501 INDUSTRIAL ROAD
<CITY>BOULDER CITY
<STATE>NV
<ZIP>89005
<PHONE>7022931930
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1501 INDUSTRIAL ROAD
<CITY>BOULDER CITY
<STATE>NV
<ZIP>89005
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>AMERICAN TIRE CORP
<DATE-CHANGED>19951117
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>amty08sep10qfinal5.htm
<DESCRIPTION>AMTY 08SEP 10Q
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>&lt;PAGE&gt; 1</TITLE>
<META NAME="author" CONTENT="User">
<META NAME="date" CONTENT="11/13/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:624px"><P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>UNITED STATES</P>
<P style="margin:0px" align=center>SECURITIES AND EXCHANGE COMMISSION</P>
<P style="margin:0px" align=center>Washington, D.C. &nbsp;20549</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center><B>FORM 10-Q</B></P>
<P style="margin:0px">(Mark One)</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:-16px">For the quarterly period ended:</P>
<P style="margin:0px; text-indent:192px"><B>September 30, 2008</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify>[ &nbsp;] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px">For the transition period from ____________________ to ____________________.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>Commission file number: <B>&nbsp;000-50053</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><img src="amty08sep10qfinal5001.jpg" alt="[amty08sep10qfinal5001.jpg]" align=middle height=113.467 width=113.467></P>
<P style="margin:0px" align=center><B><U>AMERITYRE CORPORATION</U></B></P>
<P style="margin:0px" align=center>(Exact name of small business issuer as specified in its charter)</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=319.2></TD><TD width=319.2></TD></TR>
<TR><TD valign=top width=319.2><P style="margin:0px" align=center><U>NEVADA</U></P>
</TD><TD valign=top width=319.2><P style="margin:0px" align=center><U>87-0535207</U></P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="margin:0px" align=center>(State or other jurisdiction of</P>
</TD><TD valign=top width=319.2><P style="margin:0px" align=center>(I.R.S. Employer</P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="margin:0px" align=center>incorporation or organization)</P>
</TD><TD valign=top width=319.2><P style="margin:0px" align=center>Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=349.2></TD><TD width=289.2></TD></TR>
<TR><TD valign=top width=349.2><P style="margin:0px" align=center><U>1501 INDUSTRIAL ROAD, BOULDER CITY, NEVADA</U></P>
</TD><TD valign=top width=289.2><P style="margin:0px" align=center><U>89005</U></P>
</TD></TR>
<TR><TD valign=top width=349.2><P style="margin:0px" align=center>(Address of principal executive offices)</P>
</TD><TD valign=top width=289.2><P style="margin:0px" align=center>(Zip Code)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><U>(702) 294-2689</U></P>
<P style="margin:0px" align=center>(Issuer&#146;s telephone number)</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>&nbsp;&nbsp;Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such 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. &nbsp;Yes <FONT FACE="Wingdings">&#253;</FONT> &nbsp;No <FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">&nbsp;&nbsp;Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. &nbsp;See the definitions of &#147;large accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Large accelerated filer &nbsp;<FONT FACE="Wingdings">&#168;</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated filer &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer &nbsp;&nbsp;&nbsp;<FONT FACE="Wingdings">&#253;</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Smaller reporting company <FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). &nbsp;Yes &nbsp;<FONT FACE="Wingdings">&#168;</FONT> &nbsp;No<FONT FACE="Wingdings">&#253;</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px">&nbsp;The number of shares outstanding of Registrant&#146;s Common Stock as of November 7, 2008: 23,454,595</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px" align=center>PART I - FINANCIAL INFORMATION</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>ITEM 1. &nbsp;FINANCIAL STATEMENTS</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnotes necessary for a complete presentation of our financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles. &nbsp;In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Our unaudited balance sheet at September 30, 2008 and our audited balance sheet at June 30, 2008; the related unaudited statements of operations for the three month periods ended September 30, 2008 and 2007; and the related unaudited statement of cash flows for the three month periods ended September 30, 2008 and 2007, are attached hereto.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=423.733></TD><TD width=21.067></TD><TD width=95.2></TD><TD width=15.733></TD><TD width=21.067></TD><TD width=95.2></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=672 colspan=6><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>AMERITYRE CORPORATION</P>
</TD></TR>
<TR><TD valign=top width=672 colspan=6><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>Balance Sheets</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">ASSETS</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>Sep. 30, 2008&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>June 30, 2008</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>(unaudited)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">CURRENT ASSETS</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Cash and cash equivalents</P>
</TD><TD valign=top width=21.067><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>$</P>
</TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>789,872&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>$</P>
</TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>1,701,191&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Accounts receivable &#150; net</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>592,127&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>494,690&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Inventory </P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>913,066&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>819,403&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Deposit on equipment</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>33,254&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>147,047&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Prepaid and other current assets</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>138,602&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>140,241&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>2,466,921&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>3,302,572&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">PROPERTY AND EQUIPMENT </P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Construction in progress</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>7,564&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>7,564&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Leasehold Improvements</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>162,683&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>162,683&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Molds and models</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>500,078&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>495,214&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Equipment</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>2,901,620&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>2,901,620&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Furniture and Fixtures</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>100,142&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>100,142&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Software</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>286,046&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>286,046&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Less &#150; accumulated depreciation</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(2,894,751)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(2,831,691)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Property and Equipment</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>1,063,382&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>1,121,578&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">OTHER ASSETS</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Patents and trademarks &#150; net </P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>662,884&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>658,534&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Deposits</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>71,568&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>71,568&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other Assets</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>734,452&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>730,102&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="margin-top:5.533px; margin-bottom:5.533px">TOTAL ASSETS</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:2.667px double #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>4,264,755&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:2.667px double #000000" valign=bottom width=95.2><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>5,154,252&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=423.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=672 colspan=6><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>The accompanying notes are an integral part of these financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=422.8></TD><TD width=21.067></TD><TD width=95.667></TD><TD width=15.733></TD><TD width=21.067></TD><TD width=95.667></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=672 colspan=6><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>AMERITYRE CORPORATION</P>
</TD></TR>
<TR><TD valign=top width=672 colspan=6><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>Balance Sheets (Continued)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">LIABILITIES AND STOCKHOLDERS&#146; EQUITY</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>Sep. 30, 2008</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>June 30, 2008</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>(unaudited)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">CURRENT LIABILITIES</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Accounts payable</P>
</TD><TD valign=top width=21.067><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>$</P>
</TD><TD valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>289,347&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>$</P>
</TD><TD valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>212,467&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Accrued expenses</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>65,642&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>111,205&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Deferred revenue &#150; special projects</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>2,687&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>9,451&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>357,676&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>333,123&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">TOTAL LIABILITIES</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>357,676&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>333,123&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">STOCKHOLDERS&#146; EQUITY</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px; padding-left:24.8px; text-indent:-24.8px">&nbsp;&nbsp;&nbsp;Preferred stock: 5,000,000 shares authorized of $0.001 par value, -0- &nbsp;&nbsp;shares issued and outstanding</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>-&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px; padding-left:24.8px; text-indent:-24.8px">&nbsp;&nbsp;Common stock: 40,000,000 shares authorized of $0.001 par value, &nbsp;&nbsp;&nbsp;&nbsp;23,454,595 and 23,429,595 shares issued and outstanding, respectively</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>23,452&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>23,427&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Additional paid-in capital</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>56,397,407&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>56,275,163&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Accrued interest on subscription notes receivable</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(34,036)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(25,480)</P>
</TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Subscription notes receivable</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(399,329)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(399,329)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Deferred consulting and directors&#146; compensation</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(13,332)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(33,331)</P>
</TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;Retained deficit</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(52,067,083)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>(51,019,321)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders&#146; Equity</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>3,907,079&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>4,821,129&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="margin-top:5.533px; margin-bottom:5.533px">TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY</P>
</TD><TD valign=top width=21.067><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>$</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>4,264,755&nbsp;</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>$</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=95.667><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>5,154,252&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=422.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=95.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=672 colspan=6><P style="margin-top:5.533px; margin-bottom:5.533px" align=center>The accompanying notes are an integral part of these financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=403.667></TD><TD width=22.8></TD><TD width=109></TD><TD width=25.067></TD><TD width=123.467></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=684 colspan=5><P style="margin:0px" align=center>AMERITYRE CORPORATION</P>
</TD></TR>
<TR><TD valign=top width=684 colspan=5><P style="margin:0px" align=center>Statements of Operations</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=684 colspan=5><P style="margin:0px" align=center>(unaudited)</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=257.533 colspan=3><P style="margin:0px" align=center>For the Three Months &nbsp;Ended September 30,</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=center>2008</P>
</TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=center>2007</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=403.667><P style="margin:0px">NET REVENUES</P>
</TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;&nbsp;Products</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=109><P style="margin:0px" align=right>729,673&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=123.467><P style="margin:0px" align=right>612,830&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="margin:0px">&nbsp;&nbsp;Equipment</P>
</TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="margin:0px" align=right>89,911&nbsp;</P>
</TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="margin:0px" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;&nbsp;Licenses</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>33,333&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>50,000&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Net Revenues</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>852,917&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>662,830&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">COST OF REVENUES</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=403.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;Products</P>
</TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="margin:0px" align=right>485,254&nbsp;</P>
</TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="margin:0px" align=right>464,963</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;Equipment</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>87,372&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Cost of Revenues</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>572,626&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>464,963</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">GROSS PROFIT</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>280,291&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>197,867&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=403.667><P style="margin:0px">EXPENSES</P>
</TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;Consulting</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=109><P style="margin:0px" align=right>136,498&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=123.467><P style="margin:0px" align=right>30,919&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="margin:0px">&nbsp;Depreciation and amortization</P>
</TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="margin:0px" align=right>69,864&nbsp;</P>
</TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="margin:0px" align=right>80,636&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;Research and development</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=109><P style="margin:0px" align=right>107,623&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=123.467><P style="margin:0px" align=right>158,171&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="margin:0px">&nbsp;(Gain) Loss on impairment of assets</P>
</TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="margin:0px" align=right>-&nbsp;</P>
</TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="margin:0px" align=right>(89)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;Selling, general and administrative</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>1,030,692&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>1,087,383</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;Total Expenses</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>1,344,677&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>1,357,020&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">LOSS FROM OPERATIONS</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>(1,064,386)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>(1,159,153)</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">OTHER INCOME</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=403.667><P style="margin:0px">&nbsp;Interest income</P>
</TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="margin:0px" align=right>18,979&nbsp;</P>
</TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="margin:0px" align=right>68,992&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;Miscellaneous income (expenses)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>(2,355)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>227&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">&nbsp;&nbsp;&nbsp;Total Other Income</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=109><P style="margin:0px" align=right>16,624&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=123.467><P style="margin:0px" align=right>69,219&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">NET LOSS</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:2.667px double #000000" valign=top width=109><P style="margin:0px" align=right>(1,047,762)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:2.667px double #000000" valign=top width=123.467><P style="margin:0px" align=right>(1,089,934)</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">BASIC AND DILUTED LOSS PER SHARE</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:2.667px double #000000" valign=top width=109><P style="margin:0px" align=right>(0.04)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:2.667px double #000000" valign=top width=123.467><P style="margin:0px" align=right>(0.05)</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="margin:0px">WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:2.667px double #000000" valign=bottom width=109><P style="margin:0px" align=right>23,437,747&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:2.667px double #000000" valign=bottom width=123.467><P style="margin:0px" align=right>23,432,008&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=403.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=25.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=123.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=684 colspan=5><P style="margin:0px" align=center>The accompanying notes are an integral part of these unaudited financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=425.933></TD><TD width=21.067></TD><TD width=106.933></TD><TD width=21.067></TD><TD width=110></TD><TD width=1></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=686 colspan=6><P style="margin:0px" align=center>AMERITYRE CORPORATION</P>
</TD></TR>
<TR><TD valign=bottom width=686 colspan=6><P style="margin:0px" align=center>Statements of Cash Flows</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=686 colspan=6><P style="margin:0px" align=center>(unaudited)</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=239 colspan=4><P style="margin:0px" align=center>For the Three Months Ended</P>
<P style="margin:0px" align=center>&nbsp;September 30,</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=106.933><P style="margin:0px" align=center>2008</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=111 colspan=2><P style="margin:0px" align=center>2007</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">CASH FLOWS FROM OPERATING ACTIVITIES</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">Net loss</P>
</TD><TD valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=bottom width=106.933><P style="margin:0px" align=right>(1,047,762)</P>
</TD><TD valign=bottom width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(1,089,934)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">Adjustments to reconcile net loss to net cash used by operating activities:</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;Depreciation &amp; amortization expense</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="margin:0px" align=right>69,864&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="margin:0px" align=right>80,636&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">&nbsp;Gain (Loss) on impairment of assets</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=106.933><P style="margin:0px" align=right>-&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(89)</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;Bad debt expense</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="margin:0px" align=right>5,345&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=111 colspan=2><P style="margin:0px" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">&nbsp;Common stock issued/accrued for services</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="margin:0px" align=right>16,098&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>38,481&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;Stock option granted for services</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="margin:0px" align=right>35,692&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="margin:0px" align=right>10,086&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">&nbsp;Interest income on subscription note receivable</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="margin:0px" align=right>(8,555)</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=111 colspan=2><P style="margin:0px" align=right>-&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;Stock-based compensation expense related to employee options</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="margin:0px" align=right>70,480&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="margin:0px" align=right>80,195&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">&nbsp;Amortization of expense prepaid w/ common stock</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="margin:0px" align=right>19,999&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>15,000&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;Changes in operating assets and liabilities:</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">&nbsp;(Increase) Decrease in accounts receivable</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="margin:0px" align=right>(102,782)</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>29,434&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;(Increase) in prepaid and other current assets</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="margin:0px" align=right>1,639</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(18,645)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">&nbsp;Decrease (Increase) in other assets</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="margin:0px" align=right>113,793&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(9,258)</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;(Increase) Decrease in inventory</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="margin:0px" align=right>(93,663)</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="margin:0px" align=right>20,662&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">&nbsp;Increase (Decrease) in accounts payable and accrued expenses</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=106.933><P style="margin:0px" align=right>24,551&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(195,737)</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;&nbsp;&nbsp;Net Cash Used by Operating Activities</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=106.933><P style="margin:0px" align=right>(895,301)</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(1,039,169)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">CASH FLOWS FROM INVESTING ACTIVITIES</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">&nbsp;Cash paid for patents and trademarks</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="margin:0px" align=right>(11,155)</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(13,648)</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;Proceeds from the sale of property and equipment</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=106.933><P style="margin:0px" align=right>-&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="margin:0px" align=right>744&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="margin:0px">&nbsp;Purchase of property and equipment</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=106.933><P style="margin:0px" align=right>(4,863)</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(7,303)</P>
</TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">&nbsp;&nbsp;&nbsp;Net Cash Used by Investing Activities</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=106.933><P style="margin:0px" align=right>(16,018)</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(20,207)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">CASH FLOWS FROM FINANCING ACTIVITIES</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=106.933><P style="margin:0px" align=right>-&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>-</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">NET DECREASE IN CASH AND CASH EQUIVALENTS</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=106.933><P style="margin:0px" align=right>(911,319)</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=111 colspan=2><P style="margin:0px" align=right>(1,059,376)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=106.933><P style="margin:0px" align=right>1,701,191&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>5,788,602&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=425.933><P style="margin:0px">CASH AND CASH EQUIVALENTS AT END OF PERIOD</P>
</TD><TD valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=106.933><P style="margin:0px" align=right>789,872&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=111 colspan=2><P style="margin:0px" align=right>4,729,226&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=425.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=111 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=686 colspan=6><P style="margin:0px" align=center>The accompanying notes are an integral part of these unaudited financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=439.267></TD><TD width=21.067></TD><TD width=112></TD><TD width=21.067></TD><TD width=113.4></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=706.8 colspan=5><P style="margin:0px" align=center>AMERITYRE CORPORATION</P>
</TD></TR>
<TR><TD valign=bottom width=706.8 colspan=5><P style="margin:0px" align=center>Statements of Cash Flows (Continued)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=706.8 colspan=5><P style="margin:0px" align=center>(unaudited)</P>
</TD></TR>
<TR><TD valign=bottom width=439.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=246.467 colspan=3><P style="margin:0px" align=center>For the Three Months Ended</P>
<P style="margin:0px" align=center>&nbsp;September 30,</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=439.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=112><P style="margin:0px" align=center>2008</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=113.4><P style="margin:0px" align=center>2007</P>
</TD></TR>
<TR><TD valign=bottom width=439.267><P style="margin:0px">SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=112><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=113.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=439.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=112><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=113.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=439.267><P style="margin:0px">CASH PAID FOR:</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=112><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=113.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=439.267><P style="margin:0px">&nbsp;Interest</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=112><P style="margin:0px" align=right>-&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=113.4><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=439.267><P style="margin:0px">&nbsp;Income taxes</P>
</TD><TD valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=top width=112><P style="margin:0px" align=right>-&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=bottom width=113.4><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=439.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=112><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=113.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=439.267><P style="margin:0px">NON-CASH OPERATING ACTIVITIES</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=112><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=113.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=439.267><P style="margin:0px">&nbsp;Common stock issued/accrued for services</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=112><P style="margin:0px" align=right>16,098</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=113.4><P style="margin:0px" align=right>38,481</P>
</TD></TR>
<TR><TD valign=bottom width=439.267><P style="margin:0px">&nbsp;Stock-based compensation expense related to employee options</P>
</TD><TD valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=bottom width=112><P style="margin:0px" align=right>70,480</P>
</TD><TD valign=bottom width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=bottom width=113.4><P style="margin:0px" align=right>&nbsp;80,195 &nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=439.267><P style="margin:0px">&nbsp;Stock option granted for services</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=112><P style="margin:0px" align=right>35,692</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=113.4><P style="margin:0px" align=right>10,086</P>
</TD></TR>
<TR><TD valign=bottom width=439.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=112><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=113.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=439.267><P style="margin:0px">NON-CASH INVESTING/ FINANCING ACTIVITIES</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=112><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=113.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=439.267><P style="margin:0px">&nbsp;Common stock issued for accrued liabilities</P>
</TD><TD valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=top width=112><P style="margin:0px" align=right>-&nbsp;</P>
</TD><TD valign=bottom width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=bottom width=113.4><P style="margin:0px" align=right>100,500</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=439.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=112><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=113.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=439.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=112><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=113.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=706.8 colspan=5><P style="margin:0px" align=center>The accompanying notes are an integral part of these unaudited financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center>AMERITYRE CORPORATION</P>
<P style="margin:0px" align=center>Notes to the Unaudited Financial Statements</P>
<P style="margin:0px" align=center>September 30, 2008 and June 30, 2008</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">The accompanying unaudited condensed financial statements have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission. &nbsp;Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with such rules and regulations. &nbsp;The information furnished in the interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. &nbsp;Although we believe the disclosures and information presented are adequate to make the information not misleading. These interim condensed financial statements should be read in conjunction with our most recent audited financial statements and notes thereto included in our June 30, 2008 Annual Report on Form 10-K. &nbsp;Operating results for the three months ended September 30, 2008 are not necessarily indicative of the results that may be expected for the current fiscal year ending June 30, 2009.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><I>Stock Based-Compensation Expense</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">On July 1, 2005, we adopted Statement of Financial Accounting Standards No. 123 (revised 2004), &#147;Share-Based Payment,&#148; (&#147;SFAS 123(R)&#148;). Our financial statements as of and for the three month periods ended September 30, 2008 and 2007 reflect the impact of SFAS 123(R). &nbsp;Stock-based compensation expense recognized under SFAS 123(R) for the three month periods ended September 30, 2008 and 2007 was $70,480 and $80,195, respectively, related to employee stock options issued during the respective periods. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">SFAS 123(R) requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Statement of Operations. Stock-based compensation expense recognized in our Statements of Operations for the three month periods ended September 30, 2008 and 2007 assumes all awards will vest, therefore no reduction has been made for estimated forfeitures.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><I>Basic and Fully Diluted Net Loss Per Share</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Basic and Fully Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=222.133></TD><TD width=21.067></TD><TD width=113></TD><TD width=21.067></TD><TD width=110.533></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=222.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=265.667 colspan=4><P style="margin:0px" align=center>For the Three Months Ended September 30,</P>
</TD></TR>
<TR><TD valign=top width=222.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=134.067 colspan=2><P style="margin:0px" align=center>2008</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=131.6 colspan=2><P style="margin:0px" align=center>2007</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=222.133><P style="margin:0px">Loss (numerator)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=113><P style="margin:0px" align=right>(1,047,762)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=110.533><P style="margin:0px" align=right>(1,089,934)</P>
</TD></TR>
<TR><TD valign=top width=222.133><P style="margin:0px">Shares (denominator)</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=113><P style="margin:0px" align=right>23,437,747&nbsp;</P>
</TD><TD valign=top width=21.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=110.533><P style="margin:0px" align=right>23,432,008&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=222.133><P style="margin:0px">Per share amount</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=113><P style="margin:0px" align=right>(0.04)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=110.533><P style="margin:0px" align=right>(0.05)</P>
</TD></TR>
<TR><TD valign=top width=222.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=134.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Our outstanding stock options have been excluded from the basic and fully diluted net loss per share calculation. We excluded 5,102,370 and 3,715,000 common stock equivalents for the three month periods ended September 30, 2008 and 2007, respectively, because they are anti-dilutive.</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center>AMERITYRE CORPORATION</P>
<P style="margin:0px" align=center>Notes to the Unaudited Financial Statements</P>
<P style="margin:0px" align=center>September 30, 2008 and June 30, 2008</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">NOTE 2 &#150; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><I>Liquidity</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Our financial statements are prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. We have historically incurred significant losses which have resulted in a total retained deficit of $52,067,083 at September 30, 2008. &nbsp;Although for the fiscal years ended June 30, 2006, 2007 and 2008, we have losses from operations and have used cash in our operating activities in excess of our revenues, we have had little, if any, debt and have consistently had a positive net tangible book value. In connection with the preparation of our financial statements for the year ended June 30, 2008, we have analyzed our cash needs for fiscal 2009. Based on this analysis, we concluded that our available cash will not be sufficient to meet our current working capital, capital expenditure and other cash requirements for fiscal 2009. In order to fully implement our business plan we believe we will need an additional $1,500,000 in capital. We will seek to raise additional capital through the issuance of debt or equity securities. In June 2006, we filed a shelf registration statement with the Securities and Exchange Commission. The shelf registration statement, which was declared effective in July 2006, would allow us to offer common stock, preferred stock, warrants, senior debt securities and subordinated debt securities or any combination of any of these securities in one or more offerings at an aggregate initial offering price not to exceed $120,000,000. Our ability to obtain financing through the offer and sale of our securities is subject to market conditions and other factors beyond our control. We cannot assure you that we will be able to obtain financing on favorable terms or at all. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:TimesNewRomanPS-ItalicMT"><FONT FACE="TimesNewRomanPS-ItalicMT"><I>Income Tax</I></FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:TimesNewRomanPSMT"><FONT FACE="TimesNewRomanPSMT">We file federal income tax returns in the U.S. and state income tax returns in those state jurisdictions where we are required to file</FONT><FONT FACE="TimesNewRomanPS-ItalicMT"><I>. </I></FONT>With few exceptions, we are no longer subject to U.S. federal, state or and local income tax examinations by tax authorities for years before June 30, 2004.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:TimesNewRomanPSMT">We adopted the provisions of FASB Interpretation No. 48, <FONT FACE="TimesNewRomanPS-ItalicMT"><I>Accounting for Uncertainty in Income Taxes</I></FONT>, on July 1, 2007, the first day of our current fiscal year. As a result of the implementation of Interpretation 48, no adjustment should be made for unrecognized tax benefits.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:TimesNewRomanPSMT">There are no tax positions included in the balance at September 30, 2008 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:TimesNewRomanPSMT">Our policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><FONT FACE="Times New Roman">NOTE 3 - STOCK OPTIONS AND WARRANTS</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><I>General Option Information</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">During the three month period ended September 30, 2008, we did not grant any options. During the three month period ended September 30, 2007, we granted options to acquire an aggregate of 250,000 shares of our common stock to certain employees and consultants in connection with their employment (the &#147;Employment Options&#148;). The Employment Options granted during the three month period ended September 30, 2007 vest annually over a period of one to two years based on the employee&#146;s continued employment. The exercise price for the Employment Options granted during the period was $4.04 per share. &nbsp;We use the Black-Scholes model to value stock options. The Black-Scholes model requires the use of employee exercise behavior data and the use of a number of assumptions, including volatility of our stock price, the weighted average risk-free interest rate, and the weighted average expected life of the options. Because we do not pay dividends, the dividend rate variable in the Black-Scholes model is zero. </P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center>AMERITYRE CORPORATION</P>
<P style="margin:0px" align=center>Notes to the Unaudited Financial Statements</P>
<P style="margin:0px" align=center>September 30, 2008 and June 30, 2008</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">NOTE 3 - STOCK OPTIONS AND WARRANTS (Continued)</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">We estimated the fair value of the stock options at the grant date based on the following weighted average assumptions:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=139.2></TD><TD width=129></TD><TD width=18.133></TD><TD width=128.867></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=139.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=129><P style="margin:0px" align=center>For the three month period ended</P>
<P style="margin:0px" align=center>September 30, 2008</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=18.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=128.867><P style="margin:0px" align=center>For the three month period ended</P>
<P style="margin:0px" align=center>September 30, 2007</P>
</TD></TR>
<TR><TD valign=top width=139.2><P style="margin:0px">Risk free interest rate</P>
</TD><TD valign=top width=129><P style="margin:0px" align=center>N/A</P>
</TD><TD valign=top width=18.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.867><P style="margin:0px" align=center>4.64%</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=139.2><P style="margin:0px">Expected life</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=129><P style="margin:0px" align=center>N/A</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=18.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=128.867><P style="margin:0px" align=center>5 years</P>
</TD></TR>
<TR><TD valign=top width=139.2><P style="margin:0px">Expected volatility</P>
</TD><TD valign=top width=129><P style="margin:0px" align=center>N/A</P>
</TD><TD valign=top width=18.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=128.867><P style="margin:0px" align=center>55%</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=139.2><P style="margin:0px">Dividend yield</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=129><P style="margin:0px" align=center>N/A</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=18.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=128.867><P style="margin:0px" align=center>0%</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">A summary of the status of our outstanding stock options as of September 30, 2008 and June 30, 2008 and changes during the periods then ended is presented below: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=205.2></TD><TD width=96></TD><TD width=93></TD><TD width=39></TD><TD width=96></TD><TD width=65></TD><TD width=50.2></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=205.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=228 colspan=3><P style="margin:0px" align=center>September 30, 2008</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=211.2 colspan=3><P style="margin:0px" align=center>June 30, 2008</P>
</TD></TR>
<TR><TD valign=top width=205.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=96><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><U>Shares</U></P>
</TD><TD valign=top width=132 colspan=2><P style="margin:0px" align=center>Weighted Average <U>Exercise Price</U></P>
</TD><TD valign=top width=96><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><U>Shares</U></P>
</TD><TD valign=top width=115.2 colspan=2><P style="margin:0px" align=center>Weighted Average <U>Exercise Price</U></P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=205.2><P style="margin:0px">Outstanding beginning of period</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=96><P style="margin:0px" align=right>4,260,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=93><P style="margin:0px" align=right>&nbsp;$6.34</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=39><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=96><P style="margin:0px" align=right>3,915,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=65><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=50.2><P style="margin:0px" align=center>6.81</P>
</TD></TR>
<TR><TD valign=top width=205.2><P style="margin:0px">Granted</P>
</TD><TD valign=bottom width=96><P style="margin:0px" align=right>0</P>
</TD><TD valign=bottom width=93><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=39><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96><P style="margin:0px" align=right>525,000</P>
</TD><TD valign=bottom width=65><P style="margin:0px" align=right>$</P>
</TD><TD valign=bottom width=50.2><P style="margin:0px" align=center>2.89</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=205.2><P style="margin:0px">Expired/Cancelled</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=96><P style="margin:0px" align=right>0</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=93><P style="margin:0px" align=right>-</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=39><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=96><P style="margin:0px" align=right>(180,000)</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=65><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=50.2><P style="margin:0px" align=center>6.51</P>
</TD></TR>
<TR><TD valign=top width=205.2><P style="margin:0px">Exercised</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</P>
</TD><TD valign=bottom width=93><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=39><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px" align=center>-</P>
</TD><TD valign=bottom width=65><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=50.2><P style="margin:0px" align=center>-</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=205.2><P style="margin:0px">Outstanding end of period</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px" align=right>4,260,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=93><P style="margin:0px" align=right>$6.34</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=39><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px" align=right>4,260,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=65><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=50.2><P style="margin:0px" align=center>6.34</P>
</TD></TR>
<TR><TD valign=top width=205.2><P style="margin:0px">Exercisable</P>
</TD><TD valign=bottom width=96><P style="margin:0px" align=right>3,835,000</P>
</TD><TD valign=bottom width=93><P style="margin:0px" align=right>$6.75</P>
</TD><TD valign=bottom width=39><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96><P style="margin:0px" align=right>3,835,000</P>
</TD><TD valign=bottom width=65><P style="margin:0px" align=right>$</P>
</TD><TD valign=bottom width=50.2><P style="margin:0px" align=center>6.75</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=205.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=96><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=132 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=96><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=115.2 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px">The following table summarizes the range of outstanding and exercisable options as of September 30, 2008:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=85.2></TD><TD width=127.6></TD><TD width=106.4></TD><TD width=106.4></TD><TD width=106.4></TD><TD width=106.4></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=85.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=340.4 colspan=3><P style="margin:0px" align=center><U>Outstanding</U></P>
</TD><TD style="background-color:#CCFFCC" valign=top width=212.8 colspan=2><P style="margin:0px" align=center><U>Exercisable</U></P>
</TD></TR>
<TR><TD valign=top width=85.2><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Range of</P>
<P style="margin:0px" align=center>Exercise <U>Prices</U></P>
</TD><TD valign=top width=127.6><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Number Outstanding at</P>
<P style="margin:0px" align=center><U>Sep. 30, 2008</U></P>
</TD><TD valign=top width=106.4><P style="margin:0px" align=center>Weighted</P>
<P style="margin:0px" align=center>Average</P>
<P style="margin:0px" align=center>Remaining</P>
<P style="margin:0px" align=center><U>Contractual Life</U></P>
</TD><TD valign=top width=106.4><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Weighted</P>
<P style="margin:0px" align=center>Average</P>
<P style="margin:0px" align=center><U>Exercise Price</U></P>
</TD><TD valign=top width=106.4><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Number</P>
<P style="margin:0px" align=center>Exercisable at</P>
<P style="margin:0px" align=center><U>Sep. 30, 2008</U></P>
</TD><TD valign=top width=106.4><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Weighted</P>
<P style="margin:0px" align=center>Average</P>
<P style="margin:0px" align=center><U>Exercise Price</U></P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=85.2><P style="margin:0px" align=center>$1.79</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=127.6><P style="margin:0px" align=right>200,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>4.62</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>$1.79</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>-</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>$-</P>
</TD></TR>
<TR><TD valign=bottom width=85.2><P style="margin:0px" align=center>2.02</P>
</TD><TD valign=bottom width=127.6><P style="margin:0px" align=right>75,000</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>4.50</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>2.02</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>-</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>-</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=85.2><P style="margin:0px" align=center>3.55</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=127.6><P style="margin:0px" align=right>25,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>1.29</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>3.55</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=right>25,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>3.55</P>
</TD></TR>
<TR><TD valign=bottom width=85.2><P style="margin:0px" align=center>4.04</P>
</TD><TD valign=bottom width=127.6><P style="margin:0px" align=right>250,000</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>3.87</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>4.04</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=right>100,000</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>4.04</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=85.2><P style="margin:0px" align=center>4.31</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=127.6><P style="margin:0px" align=right>30,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>1.43</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>4.31</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=right>30,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>4.31</P>
</TD></TR>
<TR><TD valign=bottom width=85.2><P style="margin:0px" align=center>5.36</P>
</TD><TD valign=bottom width=127.6><P style="margin:0px" align=right>150,000</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>1.75</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>5.36</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=right>150,000</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>5.36</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=85.2><P style="margin:0px" align=center>6.40</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=127.6><P style="margin:0px" align=right>105,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>1.21</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>6.40</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=right>105,000</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>6.40</P>
</TD></TR>
<TR><TD valign=bottom width=85.2><P style="margin:0px" align=center>6.60</P>
</TD><TD valign=bottom width=127.6><P style="margin:0px" align=right>425,000</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>1.75</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>6.60</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=right>425,000</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>6.60</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=85.2><P style="margin:0px" align=center>7.00</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=127.6><P style="margin:0px" align=right><U>3,000,000</U></P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>0.95</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>7.00</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=right>&nbsp;&nbsp;<U>3,000,000</U></P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="margin:0px" align=center>7.00</P>
</TD></TR>
<TR><TD valign=bottom width=85.2><P style="margin:0px" align=center>$1.79-$7.00</P>
</TD><TD valign=bottom width=127.6><P style="margin:0px; font-family:Times" align=right><FONT FACE="Times"><U>4,260,000</U></FONT></P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center><FONT FACE="Times New Roman">1.48</FONT></P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center>6.34</P>
</TD><TD valign=bottom width=106.4><P style="margin:0px; font-family:Times" align=right><FONT FACE="Times"><U>3,835,000</U></FONT></P>
</TD><TD valign=bottom width=106.4><P style="margin:0px" align=center><FONT FACE="Times New Roman">6.75</FONT></P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=85.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=127.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=106.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px">As of September 30, 2008, the unrecognized stock-based compensation related to stock options was approximately $462,953. This cost is expected to be expensed over a period of 2.75 years.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center>AMERITYRE CORPORATION</P>
<P style="margin:0px" align=center>Notes to the Unaudited Financial Statements</P>
<P style="margin:0px" align=center>September 30, 2008 and June 30, 2008</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<A NAME="OLE_LINK1"></A><A NAME="OLE_LINK2"></A><P style="margin:0px">NOTE 3 - STOCK OPTIONS AND WARRANTS (Continued)</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><I>General Warrant Information</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">The following table summarizes outstanding warrants to purchase our common stock at September 30, 2008.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=153.267></TD><TD width=166.933></TD><TD width=147.333></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=153.267><P style="margin:0px" align=center>Number of Warrants</P>
<P style="margin:0px" align=center>Outstanding at</P>
<P style="margin:0px" align=center><U>September 30, 2008</U></P>
</TD><TD style="background-color:#CCFFCC" valign=top width=166.933><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><U>Expiration Date</U></P>
</TD><TD style="background-color:#CCFFCC" valign=top width=147.333><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><U>Exercise Price</U></P>
</TD></TR>
<TR><TD valign=bottom width=153.267><P style="margin:0px" align=right>102,825</P>
</TD><TD valign=bottom width=166.933><P style="margin:0px" align=center>2/1/2009</P>
</TD><TD valign=bottom width=147.333><P style="margin:0px" align=center>$5.00</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=153.267><P style="margin:0px" align=right>103,825</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=166.933><P style="margin:0px" align=center>2/1/2011</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=147.333><P style="margin:0px" align=center>$5.50</P>
</TD></TR>
<TR><TD valign=bottom width=153.267><P style="margin:0px" align=right>510,720</P>
</TD><TD valign=bottom width=166.933><P style="margin:0px" align=center>March 2009</P>
</TD><TD valign=bottom width=147.333><P style="margin:0px" align=center>$4.50</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=153.267><P style="margin:0px" align=right><U>&nbsp;&nbsp;&nbsp;550,000</U></P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=166.933><P style="margin:0px" align=center>4/30/2009</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=147.333><P style="margin:0px" align=center>$4.50</P>
</TD></TR>
<TR><TD valign=bottom width=153.267><P style="margin:0px; font-family:Times" align=right><FONT FACE="Times"><U>1,267,370</U></FONT></P>
</TD><TD valign=bottom width=166.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=147.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=153.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=166.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=147.333><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><FONT FACE="Times New Roman">NOTE 4 - STOCK ISSUANCES</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Pursuant to the terms of his employment agreement, effective August 31, 2008, we issued 25,000 shares of common stock to our chief executive officer. The shares were valued at $4.04 per share, based on the closing price of the shares on the date of the stock award.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">NOTE 5 - INVENTORY</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Inventory is stated at the lower of cost (computed on a first-in, first-out basis) or market. &nbsp;The inventory consists of chemicals, finished goods produced in our plant and products purchased for resale.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=107.733></TD><TD width=21.067></TD><TD width=103.467></TD><TD width=21.067></TD><TD width=94.333></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=107.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=124.533 colspan=2><P style="margin:0px" align=center><U>Sep 30, 2008</U></P>
<P style="margin:0px" align=center>(Unaudited)</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=115.4 colspan=2><P style="margin:0px" align=center><U>June 30, 2008</U></P>
</TD></TR>
<TR><TD valign=top width=107.733><P style="margin:0px">Raw Materials</P>
</TD><TD valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=top width=103.467><P style="margin:0px" align=right>310,091</P>
</TD><TD valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD valign=top width=94.333><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>275,282</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=107.733><P style="margin:0px">Finished Goods</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=103.467><P style="margin:0px" align=right>602,975</P>
</TD><TD style="background-color:#CCFFCC" valign=top width=21.067><P style="margin:0px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=top width=94.333><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>544,120</P>
</TD></TR>
<TR><TD valign=top width=107.733><P style="margin:0px"><B>Total Inventory</B></P>
</TD><TD valign=top width=21.067><P style="margin:0px" align=right><B>$</B></P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=103.467><P style="margin:0px; font-family:Times" align=right><FONT FACE="Times">913,066</FONT></P>
</TD><TD valign=top width=21.067><P style="margin:0px" align=right><FONT FACE="Times New Roman"><B>$</B></FONT></P>
</TD><TD style="border-bottom:2.667px double #000000" valign=top width=94.333><P style="margin-top:5.533px; margin-bottom:5.533px" align=right>819,402</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=107.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=124.533 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=top width=115.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><B>ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS </B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px"><I>This discussion and analysis contains statements of a forward-looking nature relating to future events or our future financial performance or financial condition. &nbsp;Such statements are only predictions and the actual events or results may differ materially from the results discussed in or implied by the forward-looking statements. The historical results set forth in this discussion and analysis are not necessarily indicative of trends with respect to any actual or projected future financial performance. &nbsp;This discussion and analysis should be read in conjunction with the financial statements and the related notes thereto included elsewhere in this report.</I></P>
<P style="margin:0px"><BR></P>
<A NAME="Acquisitions_225050"></A><A NAME="ResultsOfOperations_225119"></A><P style="margin:0px"><B>Overview and Recent Developments</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:6.667px">Since our inception in 1995, we have been engaged in the research and development of technologies related to the formulation of polyurethane compounds and the manufacturing process for producing tires constructed of polyurethane. &nbsp;We believe that we have developed unique polyurethane formulations that, when used in tire applications substantially simplify the production process and allow for the creation of products with superior performance characteristics, including abrasion resistance and load-bearing capabilities, than conventional rubber tires. &nbsp;We also believe that the manufacturing processes we have developed to produce polyurethane tires are more efficient than traditional tire manufacturing processes, in part because our polyurethane compounds do not require the multiple processing steps, extreme heat, and high pressure that are necessary to cure rubber. &nbsp;Using our polyurethane technologies, we believe tires can be produced that last longer, are less susceptible to failure and offer improved fuel economy. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">While the sale of polyurethane foam tires to original equipment manufacturers, distributors and retail stores continues to account for most of our revenue at this time, Elastothane<SUP>&#174; </SUP>and Amerifill&#174; and other proprietary polyurethane materials are significant to our potential future growth. We are concentrating on five principal product areas: tire fill, low duty cycle tires, solid tires, composite tires and pneumatic tires; as well as developing new products, such as polyurethane foam fire retardant material. Our most recent activities in these areas are set forth below:</P>
<P style="margin:0px; text-indent:48px">Tire fill &#150; Through research and testing, we have found that our Amerifill&#174; material is not compatible with most tire fill equipment in use today; therefore our customers must also acquire the necessary tire fill equipment to use our materials. In order to penetrate this market we are supplying our customers with tire fill equipment at our cost. Profits from this initiative will be derived from the sale of Amerifill&#174; to our customers. Since launching this program in the spring of 2008 we have completed shipment of five (5) light-weight fill machines. Each fill machine is expected to pump between 100,000 to 200,000 lbs. of fill material annually, although the capacity of each machine is in excess of 500,000 lbs. per year. &nbsp;We expect to place six (6) additional machines with other potential customers before the end of this calendar year. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Low duty tires &#150; We recently announced that Supergrip, a leading supplier of superior commercial grade industrial and mining tires, has selected us to manufacture and supply a new line of long-wearing, flat-proof polyurethane tires. The tires will be manufactured in multiple sizes for a variety of commercial applications using the unique, proprietary polyurethane formulations developed by Amerityre. &nbsp;The tires will carry the Supergrip brand name.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Solid tires &#150; In September 2008, our President and Chief Executive Officer made a presentation at International Tire Exhibition and Conference (ITEC) in Akron, Ohio, titled &#147;Price Competitive High Volume Solid Polyurethane Tire Production.&#148; Dr. Benninger discussed our process for manufacturing cost-competitive MDI polyurethane solid tires at a high rate of production and present laboratory and vehicle test data. In addition, he provided a detailed pricing model demonstrating competitive pricing of the MDI polyurethane tire with a comparable solid rubber tire. &nbsp;We have demonstrated the capability of making solid polyurethane elastomer forklift tires at the rate of one tire per minute, using our advanced production technology and hope to see these products go commercial during this current fiscal year. &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Composite tires &#150; There are multiple applications for use of our polyurethane elastomer material as treads for new or retread tire casings. The first commercial application for this technology is being initiated by Desert Research Technology (&#147;DRT), to manufacture paddle-type sand tires. &nbsp;DRT has recently commenced commercial production of this product and we have begun to supply DRT with the chemical system necessary to produce the tires. &nbsp;Our licensee, Qingdao Qizhou Rubber Company, LTD. (&#147;Qingdao&#148;) has told us that due to the slow-down in </P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always">the international economy, it will not meet its original September 2008 deadline for commencing OTR tire retreads and we cannot estimate the extent of the delay at this time. However, once Qingdao&#146;s OTR tire retread facility is operational, Qingdao will purchase the polyurethane elastomer chemical systems necessary to produce the OTR tire retreads directly from us. </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">Pneumatic tires &#150; We continue to manufacture prototype passenger car tires to evaluate the properties of the tires in the laboratory and on vehicles. We have also provided prototype tires to other tire or automotive manufacturers for performance evaluation, which may include uniform tire quality grading or other performance testing and/or testing to non-U.S. safety standards. In addition, we have been working to finalize the elements of the manufacturing process that is intended to achieve a production rate of one tire per minute. In connection with our objective, during the period we announced that we have entered into a Phase I development program with a multi-billion dollar defense industry contractor that is a leader in aerospace composite technology. &nbsp;The objective of the Phase I development program is to establish the base line performance characteristics of the polyurethane passenger car tire incorporating a &#147;composite hoop&#148; belt , as opposed to traditional tire belting material. &nbsp;The objective of the composite hoop belt is to improve tire performance while simplifying the tire manufacturing process. </P>
<P style="margin:0px; text-indent:48px">Polyurethane Foam Fire Retardant Material - We have recently formulated and tested flame retardant polyurethane foam for use as packaging material. The flame retardant material has performed well in flammability testing and exceeded the requirements of the UL 94-HB (Horizontal Burn) test. We are currently evaluating commercial applications for this product. </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px"><B>Factors Affecting Results of Operations</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">Our operating expenses consisted primarily of the following:</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Cost of sales, which consists primarily of raw materials, components and production of our products, including applied labor costs and benefits expenses, maintenance, facilities and other operating costs associated with the production of our products; </FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Selling, general and administrative expenses, which consist primarily of salaries, commissions and related benefits paid to our employees and related selling and administrative costs including professional fees; &nbsp;</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Research and development expenses, which consist primarily of equipment and materials used in the development of our technologies;</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Consulting expenses, which consist primarily of amounts paid to third-parties for outside services;</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Depreciation and amortization expenses which result from the depreciation of our property and equipment, including amortization of our intangible assets; and</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Amortization of deferred compensation that results from the expense related to certain stock options to our employees.</FONT></P>
<P style="margin:0px"><B>Critical Accounting Policies</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. &nbsp;The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. &nbsp;On an ongoing basis, we evaluate our estimates, including those related to uncollectible receivables, inventory valuation, deferred compensation and contingencies. &nbsp;We base our estimates on historical performance and on various other assumptions that we believe to be reasonable under the circumstances. &nbsp;These estimates allow us to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">We believe the following accounting policies are our critical accounting policies because they are important to the portrayal of our financial condition and results of operations and they require critical management judgments and estimates about matters that may be uncertain. &nbsp;If actual results or events differ materially from those contemplated by us in making these estimates, our reported financial condition and results of operations for future periods could be materially affected.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><I>Revenue Recognition</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Revenue for products is recognized when the sales amount is determined, shipment of goods to the customer has occurred and collection is reasonably assured. Generally, we ship all of our products FOB origination. License fee revenue is recognized as earned, and no revenue is recognized until the inception of the license term. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><I>Valuation of Intangible Assets and Goodwill</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">At September 30, 2008, we had capitalized patent and trademark costs totaling $776,938. &nbsp;The patents which have been granted are being amortized over a period of 20 years. &nbsp;Patents which are pending or are being developed are not amortized until a patent has been issued. &nbsp;We evaluate the recoverability of intangibles and review the amortization period on a continual basis utilizing the guidance of Statement of Financial Accounting Standards &#147;SFAS&#148; No. 142, &quot;Goodwill and Other Intangible Assets.&quot; &nbsp;We test our patents and trademarks for impairment at least annually and whenever events or changes in circumstances indicated that the carrying value may not be recoverable. &nbsp;We consider the following indicators, among others, when determining whether or not our patents are impaired: </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:96px"><FONT FACE="Times New Roman">any changes in the market relating to the patents that would decrease the life of the asset; </FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:96px"><FONT FACE="Times New Roman">any adverse change in the extent or manner in which the patents are being used; </FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:96px"><FONT FACE="Times New Roman">any significant adverse change in legal factors relating to the use of the patents; </FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:96px"><FONT FACE="Times New Roman">current-period operating or cash flow loss combined with our history of operating or cash flow losses; </FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:96px"><FONT FACE="Times New Roman">future cash flow values based on the expectation of commercialization through licensing; and </FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin:0px; padding-left:96px"><FONT FACE="Times New Roman">current expectations that, more likely than not, the patents will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.</FONT></P>
<P style="margin-top:0px; margin-bottom:13.333px"><I>Inventory</I></P>
<P style="margin-top:0px; margin-bottom:6.667px">Inventory is stated at the lower of cost (computed on a first-in, first-out basis) or market. &nbsp;The inventory consists of chemicals, finished goods produced in our plant and products purchased for resale.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><I>Stock-Based Compensation</I></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:48px">Equity securities issued for services rendered have been accounted for at the fair market value of the securities on the date of authorization. &nbsp;On July 1, 2005, we adopted SFAS No. 123 (revised 2004), &#147;Share-Based Payment,&#148; (&#147;SFAS 123(R)&#148;). &nbsp;SFAS 123(R) requires companies to estimate the fair value of share-based payment awards on the date of grant using an option pricing model. &nbsp;The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Statement of Operations. Under SFAS 123(R), stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. The stock-based compensation expense recognized under SFAS 123(R) for the three month periods ended September 30, 2008 and 2007 was $70,480 and $80,195, respectively, and assumes all awards will vest. &nbsp;Therefore, no reduction has been made for estimated forfeitures.</P>
<P style="margin:0px; text-indent:48px">The valuation of options and warrants granted to unrelated parties for services are measured as of the earlier of the date at which a commitment for performance by the counterparty to earn the equity instrument is reached, or the date the counterparty&#146;s performance is complete. &nbsp;Pursuant to the requirements of Emerging Issues Task Force No. 96-18, the options and warrants will be revalued in situations where they are granted prior to the completion of the performance.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:6.667px"><B>Results of Operations </B></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:48px">Our management reviews and analyzes several key performance indicators in order to manage our business and assess the quality and potential variability of our revenues and cash flows. These key performance indicators include:</P>
<P style="margin-top:0px; margin-bottom:6.667px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol; page-break-before:always"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Net revenues, which consists of sales revenues and license fees;</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Sales revenue, net of returns and trade discounts, which is an indicator of our overall business growth and the success of our sales and marketing efforts;</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Gross profit, which is an indicator of both competitive pricing pressures and the cost of revenues of our products;</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Growth in our customer base, which is an indicator of the success of our sales efforts; and</FONT></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:74.667px; text-indent:-24px; font-family:Symbol"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:74.667px"><FONT FACE="Times New Roman">Distribution of revenue across our products offered.</FONT></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">The following summary table presents a comparison of our results of operations for the three month periods ended September 30, 2008 and 2007 with respect to certain key financial measures. &nbsp;The comparisons illustrated in the table are discussed in greater detail below.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=173.267></TD><TD width=24></TD><TD width=86></TD><TD width=22.133></TD><TD width=84.733></TD><TD width=15.733></TD><TD width=103.4></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=173.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=216.867 colspan=4><P style="margin-top:0px; margin-bottom:6.667px" align=center><B>Three Month Period Ended September 30,</B></P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center><B>Percent Change</B></P>
</TD></TR>
<TR><TD valign=top width=173.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=24><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=center><B>2008</B></P>
</TD><TD valign=bottom width=22.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=center><B>2007</B></P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center><B>2008 </B></P>
<P style="margin-top:0px; margin-bottom:6.667px" align=center><B>vs.</B></P>
<P style="margin-top:0px; margin-bottom:6.667px" align=center><B>2007</B></P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Net revenues <SUP>(1)</SUP></P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>852,917</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>662,830&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>28.7%</P>
</TD></TR>
<TR><TD valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Cost of revenues</P>
</TD><TD valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>572,626</P>
</TD><TD valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>464,963&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>23.1%</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Gross profit</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>280,291</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>197,867&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>41.6%</P>
</TD></TR>
<TR><TD valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Selling, general, and administrative expenses <SUP>(2)</SUP></P>
</TD><TD valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>1,030,692</P>
</TD><TD valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>1,087,383&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>(5.2%)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Consulting expenses <SUP>(3)</SUP></P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>136,498</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>30,919&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>341.5%</P>
</TD></TR>
<TR><TD valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Research and development expenses</P>
</TD><TD valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>107,623</P>
</TD><TD valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>158,171&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>(32.0%)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Depreciation and amortization expenses</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>69,864</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>80,636&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>(13.4%)</P>
</TD></TR>
<TR><TD valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Loss on sales and impairment of assets</P>
</TD><TD valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>-</P>
</TD><TD valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>(89)</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>(100%)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Other Income</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>16,624</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>69,219&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>(75.9%)</P>
</TD></TR>
<TR><TD valign=bottom width=173.267><P style="margin-top:0px; margin-bottom:6.667px">Net loss</P>
</TD><TD valign=bottom width=24><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=86><P style="margin-top:0px; margin-bottom:6.667px" align=right>(1,047,762)</P>
</TD><TD valign=bottom width=22.133><P style="margin-top:0px; margin-bottom:6.667px" align=right>$</P>
</TD><TD valign=bottom width=84.733><P style="margin-top:0px; margin-bottom:6.667px" align=right>(1,089,934)</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.4><P style="margin-top:0px; margin-bottom:6.667px" align=center>(3.9%)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:13.333px; margin-top:0px; margin-bottom:5.333px; padding-left:24px; font-size:10.667px">(1) Includes $33,333 and $50,000 of license revenue in the three month periods ended September 30, 2008 and 2007, respectively, with no associated cost of revenues for the periods.</P>
<P style="line-height:13.333px; margin-top:0px; margin-bottom:5.333px; padding-left:24px; font-size:10.667px">(2) Includes deferred compensation associated with employee stock options of $70,480 and $80,195 in the three month periods ended September 30, 2008 and 2007, respectively. </P>
<P style="line-height:13.333px; margin-top:0px; margin-bottom:5.333px; padding-left:24px; font-size:10.667px">(3) For the three months ended September 30, 2008 this amount includes $26,562 for the pro rata value of the stock option granted to Mr. Steinke during the period for services pursuant to a consulting agreement dated September 1, 2007. It also includes $9,131, representing the pro rata value of the stock option granted to Mr. Chacon during the period for services pursuant to a consulting agreement dated May 1, 2008. For the three months ended September 30, 2007 this amount includes $10,086 for the pro rata value of the stock option granted to Mr. Steinke. </P>
<P style="margin-top:0px; margin-bottom:6.667px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:6.667px; page-break-before:always"><I>Three Month Period Ended September 30, 2008 Compared to September 30, 2007</I></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:48px"><I>Net revenues</I>. &nbsp;&nbsp;We had net revenues of $852,917 for the three month period ended September 30, 2008, a 29% increase over net revenues of $662,830 for the three month period ended September 30, 2007. The 29% increase as compared with 2007 is due to a combination of an increase in product and new equipment sales offset by a small decrease in license fees. &nbsp;Sales of our closed-cell polyurethane foam products ($729,673), equipment ($89,911) and licensee fees ($33,333) accounted for approximately 86%, 10% and 4%, respectively, of our net revenues for the three month period ended September 30, 2008.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:48px">The $729,673 of foam product revenues represents a 19% increase compared to $612,830 for the same period in 2007. &nbsp;During the reporting period, we increased our number of product units sold to our original equipment manufacturer, retail chain and distributor customers by 13% over the three month period ended September 30, 2007, despite an overall weakness in U.S. consumer markets in 2008.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:48px">We had $33,333 of revenues derived from licensing fees compared to $50,000 for the three month period ended September 30, 2007. The decrease in license fees is a result of reaching the end of the license fee arrangement with our Chinese OTR retread licensee. Any additional revenue we may derive from our Chinese OTR retread licensee will come from the sale of equipment and/or chemical systems. </P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:48px">For the three month period ended September 30, 2008, we had $89,911 of revenues derived from sales of tire fill equipment, or approximately 10% of total net revenues. We had no revenue derived from sales of equipment for the three month period ended September 30, 2007.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:48px">Also during the three month period ended September 30, 2008 we had $16,785 and $2,608 of returns of our products and trade discounts, respectively, compared to $8,025 and $3,691, respectively, for the same period in 2007.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:48px"><I>Cost of revenues</I>. &nbsp;Our cost of revenues of $572,626 for the three month period ended September 30, 2008, representing approximately 67% of net revenues, compared to cost of revenues of $464,963 or approximately 70% of net revenues for the three month period ended September 30, 2007. </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">For the three month period ended September 30, 2008 our cost of revenues related to foam products was $485,254, or 67% of foam product revenues, compared to $464,963, or 76% of foam product revenues for the same three month period in 2007. We believe that our cost of revenues related to foam products can continue to improve if our increased sales efforts generate additional product orders so that we can take advantage of manufacturing efficiencies. &nbsp;We believe we currently have sufficient foam product manufacturing equipment and employees to accomplish a substantial increase in production without incurring a proportionately equivalent increase in labor costs. </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">During the three month period ended September 30, 2008 our cost of revenues related to equipment sales was $87,372, or approximately 97% of equipment sales. As indicated in the Overview and Recent Developments section above, in order to penetrate the tire fill market we are supplying our customers with tire fill equipment effectively at our cost. We anticipate that profits from this initiative will be derived from the sale of tire fill material to our customers.</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px"><I>Gross Profit</I>. &nbsp;For the three month period ended September 30, 2008 we had $280,291 of gross profit compared to $197,867 for the same period in 2007. &nbsp;Gross profit for the three month period ended September 30, 2008 increased by $82,424, or 42%, over same period in 2007 due primarily to the increase in foam product sales during the period detailed above. Because our profit margin on licensee fees (with no associated cost of revenues) and foam products is substantially higher than our profit margin on equipment, our gross profit margin in future periods will be influenced by the percent of total revenues derived from foam product sales, equipment sales and licensee fees, respectively.</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px"><I>Selling, General, and Administrative Expenses</I>. &nbsp;For the three month period ended September 30, 2008 we had $1,030,692 of SG&amp;A expenses, including the amortization of deferred compensation, compared to $1,087,383 for the same period in 2007. &nbsp;We amortized $70,480 of deferred compensation for the three month period ended September 30, 2007 compared to $80,195 for same period in 2007. &nbsp;We expect our quarterly SG&amp;A expenses to decrease during the balance of the 2009 fiscal year as a result of cost reduction measures currently being implemented. </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px"><I>Research and Development Expenses</I>. &nbsp;For the three month period ended September 30, 2008 we had $107,623 of research and development expenses compared to $158,171 for the same period in 2007. &nbsp;Our research </P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; page-break-before:always">and development expenses for the three month period ended September 30, 2008, decreased by $50,548, or 32%, as compared with the same period in 2007 due primarily to a decrease in outside testing services and a reduction in research and development tooling expenses during the period. &nbsp;We expect research and development expenses to slightly decrease over the balance of the fiscal year ending June 30, 2009.</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px"><I>Consulting Expenses</I>. &nbsp;For the three month period ended September 30, 2008, we had $136,498 in consulting expenses compared to $30,919 in consulting expenses for the same period in 2007. &nbsp;Our consulting expenses for the three month period ended September 30, 2008, increase by $105,579, or 341% as compared with the same period in 2007 due primarily to our consulting agreement with our former CEO, Richard Steinke and our former Chief Chemical Systems Formulator, Manuel Chacon. We expect consulting expenses for the balance of the fiscal year to be consistent with the three month period ended September 30, 2008. </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px"><I>Depreciation and Amortization Expenses</I>. &nbsp;For the three month period ended September 30, 2008 we had $69,864 of depreciation and amortization expenses compared to $80,636 for the same period in 2007. &nbsp;Our depreciation and amortization expenses for the three month period ended September 30, 2008 decreased by $10,772, or 13%, compared to the same period in 2007, due to reductions for fully depreciated assets.</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px"><I>Net Loss</I>. &nbsp;For the three month period ended September 30, 2008 we had a net loss of $1,047,762 compared to a net loss of $1,089,934 for the same period in 2007. &nbsp;Our net loss for the three month period ended September 30, 2008 decreased by $42,172 as compared with the same period in 2007, due primarily to the increase in product sales.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:13.467px; text-indent:-13.467px"><B>Liquidity and Capital Resources</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">Our principal sources of liquidity consist of cash and cash equivalents and payments received from our customers. &nbsp;We have no long-term liabilities, and we do not have any significant credit arrangements. &nbsp;Historically, our expenses have exceeded our revenues, resulting in operating losses. &nbsp;From time to time, we have obtained additional liquidity to fund our operations through the sale of shares of our common stock. &nbsp;In assessing our liquidity, our management reviews and analyzes our current cash balances on-hand, short-term investments, accounts receivable, accounts payable, capital expenditure commitments and other obligations.</P>
<P style="margin-top:0px; margin-bottom:6.667px"><I>Cash Flows</I></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">The following table sets forth our cash flows for the three month periods ended September 30, 2008 and 2007.</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=353.267></TD><TD width=19.2></TD><TD width=8.067></TD><TD width=1.133></TD><TD width=62.133></TD><TD width=15.133></TD><TD width=11.467></TD><TD width=52.6></TD><TD width=19.2></TD><TD width=11.533></TD><TD width=64.267></TD><TD width=6></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=353.267><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=19.2><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:1.333px solid #000000" valign=bottom width=245.533 colspan=9><P style="line-height:13.333px; margin:0px" align=center>Three Months Ended&nbsp;September 30,</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=6><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=353.267><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=19.2><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=71.333 colspan=3><P style="line-height:13.333px; margin:0px" align=center>2008</P>
</TD><TD valign=bottom width=15.133><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=64.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=75.8 colspan=2><P style="line-height:13.333px; margin:0px" align=center>2007</P>
</TD><TD valign=bottom width=6><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=353.267><P style="margin:0px; padding-left:13.333px; text-indent:-13.333px">Net cash used by operating activities</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=19.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=8.067><P style="margin:0px">$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=63.267 colspan=2><P style="margin:0px" align=right>(895,301</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=15.133><P style="margin:0px">)</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=11.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=52.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=11.533><P style="margin:0px">$</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=64.267><P style="margin:0px" align=right>(1,039,169</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=353.267><P style="margin:0px; padding-left:13.333px; text-indent:-13.333px">Net cash used in investing activities</P>
</TD><TD valign=bottom width=19.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=71.333 colspan=3><P style="margin:0px" align=right>(16,018</P>
</TD><TD valign=bottom width=15.133><P style="margin:0px">)</P>
</TD><TD valign=bottom width=64.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=75.8 colspan=2><P style="margin:0px" align=right>(20,207</P>
</TD><TD valign=bottom width=6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=353.267><P style="margin:0px; padding-left:13.333px; text-indent:-13.333px">Net cash provided by financing activities</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=19.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=71.333 colspan=3><P style="margin:0px" align=right>-</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=15.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=64.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=19.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-bottom:1px solid #000000" valign=bottom width=75.8 colspan=2><P style="margin:0px" align=right>-</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=353.267><P style="margin:0px; padding-left:13.333px; text-indent:-13.333px">Net (decrease) increase in cash and cash equivalents during period</P>
</TD><TD valign=bottom width=19.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=9.2 colspan=2><P style="margin:0px" align=right>$</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=62.133><P style="margin:0px" align=right>(911,319</P>
</TD><TD valign=bottom width=15.133><P style="margin:0px">)</P>
</TD><TD valign=bottom width=11.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=52.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=19.2><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=11.533><P style="margin:0px">$</P>
</TD><TD style="border-bottom:2.667px double #000000" valign=bottom width=64.267><P style="margin:0px" align=right>(1,059,376</P>
</TD><TD valign=bottom width=6><P style="margin:0px">)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px"><I>Net Cash Used By Operating Activities. </I>&nbsp;Our primary sources of operating cash during the three month period ended September 30, 2008 was proceeds from prior period finance activities and collected accounts receivable. &nbsp;Our primary uses of operating cash are payments made to our vendors and employees. Net cash used by operating activities was $895,301 for the three months ended September 30, 2008 compared to $1,039,169 for the same period in 2007. &nbsp;The decrease in cash used in operating activities is due to increases in accounts payable and decrease in capital expenditures for the three months ended September 30, 2008 compared to the same period in 2007. &nbsp;Non-cash items include depreciation and amortization and stock based compensation. Our net loss was $1,047,762 for the three months ended September 30, 2008 compared to a net loss of $1,089,934 for the same period in 2007. &nbsp;Net loss for the three month period ended September 30, 2008 included non-cash expenses of $70,480 for stock-based compensation related to employee stock options, $35,692 for the issuance of a stock option for consulting services, $16,098 for stock issued/accrued for services. &nbsp;Net loss for the three month period ended September 30, 2007 included non-cash expenses of $80,195 for stock-based compensation related to employee stock options.</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:5.533px; margin-bottom:5.533px; text-indent:48px; page-break-before:always"><I>Net Cash Used In Investing Activities. &nbsp;</I>Net cash used by investing activities was $16,018 for the three month period ended September 30, 2008 and $20,207 for the same period in 2007. &nbsp;Our primary uses of investing cash for the three month period ended September 30, 2008 were $11,155 deposits on patents and trademarks and $4,863 for property and equipment. &nbsp;Our primary use of investing cash for the three month period ended September 30, 2007 was $13,648 for patents and trademarks and $7,303 for property and equipment.</P>
<P style="margin-top:5.533px; margin-bottom:-16px">&nbsp;<A NAME="page_dm1180_1_35"></A></P>
<P style="margin-top:0px; margin-bottom:5.533px; text-indent:48px"><I>Net Cash Provided by Financing Activities</I>. &nbsp;During the three months ended September 30, 2008 and September 30, 2007, we did not engage in any financing activities<A NAME="CashPositionAndIndebtedness_224529"></A>.</P>
<P style="margin:0px"><I>Cash Position and Outstanding Indebtedness</I></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">Our total indebtedness at September 30, 2008 was $289,347 in accounts payable, and $68,329 in accrued expenses and deferred revenues, and our total cash and cash equivalents were $789,872, none of which is restricted. &nbsp;We have no long-term liabilities.<A NAME="ContractualObligationsAndCommitme_224547"></A></P>
<P style="margin-top:0px; margin-bottom:13.333px"><I>Contractual Obligations and Commitments</I></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px">The following table summarizes our contractual cash obligations and other commercial commitments at September 30, 2008.</P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=218.267></TD><TD width=16></TD><TD width=8></TD><TD width=60.6></TD><TD width=4.267></TD><TD width=8.533></TD><TD width=8.733></TD><TD width=55.133></TD><TD width=8.067></TD><TD width=13.133></TD><TD width=9.2></TD><TD width=52></TD><TD width=4.267></TD><TD width=9.2></TD><TD width=46.867></TD><TD width=7.267></TD><TD width=0.733></TD><TD width=13></TD><TD width=45.133></TD><TD width=8.067></TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=218.267><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=16><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD style="background-color:#CCFFCC; border-bottom:1.333px solid #000000" valign=bottom width=354.133 colspan=17><P style="line-height:13.333px; margin:0px" align=center>Payments&nbsp;due&nbsp;by&nbsp;period</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=8.067><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=218.267><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=16><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=68.6 colspan=2><P style="line-height:13.333px; margin:0px" align=center>Total</P>
</TD><TD valign=bottom width=4.267><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=80.467 colspan=4><P style="line-height:13.333px; margin:0px" align=center>Less&nbsp;than<BR>
1&nbsp;year</P>
</TD><TD valign=bottom width=13.133><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=61.2 colspan=2><P style="line-height:13.333px; margin:0px" align=center>1 to 3&nbsp;years</P>
</TD><TD valign=bottom width=4.267><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=56.067 colspan=2><P style="line-height:13.333px; margin:0px" align=center>3 to 5&nbsp;years</P>
</TD><TD valign=bottom width=7.267><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD valign=bottom width=58.867 colspan=3><P style="line-height:13.333px; margin:0px" align=center>After<BR>
5&nbsp;years</P>
</TD><TD valign=bottom width=8.067><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=bottom width=218.267><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=16><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=354.133 colspan=17><P style="line-height:13.333px; margin:0px" align=center>(in&nbsp;thousands)</P>
</TD><TD style="background-color:#CCFFCC" valign=bottom width=8.067><P style="line-height:13.333px; margin:0px" align=center>&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=218.267><P style="margin:0px; padding-left:13.333px; text-indent:-13.333px">Facility lease <SUP>(1)</SUP></P>
</TD><TD valign=bottom width=16><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=8><P style="margin:0px">$</P>
</TD><TD valign=bottom width=60.6><P style="margin:0px" align=right>1,217,700</P>
</TD><TD valign=bottom width=4.267><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=8.533><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=8.733><P style="margin:0px">$</P>
</TD><TD valign=bottom width=55.133><P style="margin:0px" align=right>295,200</P>
</TD><TD valign=bottom width=8.067><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=13.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=9.2><P style="margin:0px">$</P>
</TD><TD valign=bottom width=52><P style="margin:0px" align=right>885,600</P>
</TD><TD valign=bottom width=4.267><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=9.2><P style="margin:0px">$</P>
</TD><TD valign=bottom width=46.867><P style="margin:0px" align=right>36,900</P>
</TD><TD valign=bottom width=8 colspan=2><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=13><P style="margin:0px">$</P>
</TD><TD valign=bottom width=45.133><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=8.067><P style="margin:0px" align=right>&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC" valign=top width=218.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=16><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=68.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=4.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=8.533><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=63.867 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=8.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=13.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=61.2 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=4.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=56.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=7.267><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=58.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC" valign=bottom width=8.067><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=218.267><P style="margin:0px; padding-left:13.333px; text-indent:-13.333px">Total contractual cash obligations</P>
</TD><TD valign=bottom width=16><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=8><P style="margin:0px">$</P>
</TD><TD style="border-top:1.333px solid #000000; border-bottom:4px double #000000" valign=bottom width=60.6><P style="margin:0px" align=right>1,217,700</P>
</TD><TD valign=bottom width=4.267><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=8.533><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=8.733><P style="margin:0px">$</P>
</TD><TD style="border-top:1.333px solid #000000; border-bottom:4px double #000000" valign=bottom width=55.133><P style="margin:0px" align=right>295,200</P>
</TD><TD valign=bottom width=8.067><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=13.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=9.2><P style="margin:0px">$</P>
</TD><TD style="border-top:1.333px solid #000000; border-bottom:4px double #000000" valign=bottom width=52><P style="margin:0px" align=right>885,600</P>
</TD><TD valign=bottom width=4.267><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=9.2><P style="margin:0px">$</P>
</TD><TD style="border-top:1.333px solid #000000; border-bottom:4px double #000000" valign=bottom width=46.867><P style="margin:0px" align=right>36,900</P>
</TD><TD valign=bottom width=7.267><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=13.733 colspan=2><P style="margin:0px">$</P>
</TD><TD style="border-top:1.333px solid #000000; border-bottom:4px double #000000" valign=bottom width=45.133><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=8.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(1) &nbsp;In November 2007, we negotiated an extension of the lease for our executive and manufacturing facilities located at 1501 Industrial Road, Boulder City, Nevada. &nbsp;The property consists of a 49,200 square foot building, which includes approximately 5,500 square feet of office space, situated on approximately 4.15 acres. &nbsp;The extension term of the lease is 5 years expiring November 14, 2012. &nbsp;The base rent is $24,600 per month subject to annual adjustments based on the consumer price index.</P>
<P style="margin:0px"><BR></P>
<A NAME="FutureCapitalRequirements_224617"></A><P style="margin:0px"><I>Future Capital Requirements </I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">In an effort to increase revenues, we have recently expanded our product lines&nbsp;and begun the sale&nbsp;of polyurethane foam tire fill and solid polyurethane elastomer tires. In December 2007, we offered aggressive sales projections based on our assessment of our planned sales initiatives. We believe the increased revenues reported for the current fiscal quarter are only beginning to reflect our progress toward our sales projections, which we anticipate will become more apparent during our fiscal year ending June 30, 2009. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Although we believe that we will successfully implement our business plan to provide for additional revenues to offset operating costs, management cannot give any assurances that it will be able to do so or that we will ever operate profitably.&nbsp; Our business plan assumes, among other things, that&nbsp;our revenues will increase from the sale of the new product lines, our raw materials expenses may increase, and our expenses from operations will decrease due to the cost reduction measures currently being implemented. &nbsp;&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">&nbsp;At September 30, 2008, we had approximately $789,872 available to finance our operations plus approximately $592,127 in accounts receivable. We estimate that we will need approximately $1,500,000 to supplement our cash needs during the remainder of the 2009 fiscal year. We intend to issue common stock in lieu of cash as compensation for employment, development and other professional services when possible and seek project funding for business and technology development outside our core operations. We will seek to raise additional capital through the issuance of debt or equity securities. Our ability to obtain financing through the offer and sale of our securities is subject to market conditions and other factors beyond our control.&nbsp;If we do seek additional capital, we cannot assure you that we will be able to obtain financing on favorable terms or at all.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:6.667px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:6.667px; page-break-before:always"><I>Off-Balance Sheet Arrangements</I></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:48px">We do not currently have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. In addition, we do not engage in trading activities involving non-exchange traded contracts. </P>
<P style="margin-top:0px; margin-bottom:13.333px"><B>Recent Accounting Pronouncements</B></P>
<P style="margin:0px; text-indent:48px">In December 2007, the FASB issued SFAS 141(R), <I>Business Combinations</I>, an amendment of SFAS 141, which provides additional guidance on business combinations including defining the acquirer, recognizing and measuring the identifiable assets acquired and the liabilities assumed, and any noncontrolling interest in the acquiree. SFAS Nos. 141(R) is scheduled to become effective for us for financial statements issued for fiscal year 2009. &nbsp;We are currently evaluating the effects, if any, that this statement will have on our future financial position, results of operations and operating cash flows.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">In December 2007, the FASB issued SFAS 160, <I>Noncontrolling Interests in Consolidated Financial Statements</I>, which amended ARB 51, to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. &nbsp;SFAS 160 is scheduled to become effective for us for financial statements issued for fiscal year 2009. &nbsp;We are currently evaluating the effects, if any, that this statement will have on our future financial position, results of operations and operating cash flows.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">In March&nbsp;2008, the Financial Accounting Standards Board (FASB) issued SFAS No.&nbsp;161, Disclosures about Derivative Instruments and Hedging Activities-an amendment of FASB Statement No.&nbsp;133 (&quot;SFAS No. 161&quot;). SFAS No. 161 changes the disclosure requirements for derivative instruments and hedging activities. Entities are required to provide enhanced disclosures about how and why an entity uses derivative instruments, how the instruments are accounted for under SFAS No. 133 and its related interpretations, and how the instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. The guidance in SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November&nbsp;15, 2008 (fiscal year 2009 for the Company). The Company is currently evaluating the potential impact of the adoption of SFAS&nbsp;No. 161 on its disclosures in the Company's&nbsp;financial statements.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">In May of 2008, the FASB issued Statement No. 162, <I>&#147;The Hierarchy of Generally Accepted Accounting Principles.&#148; &nbsp;</I>This statement identifies literature established by the FASB as the source for accounting principles to be applied by entities which prepare financial statements presented in conformity with generally accepted accounting principles (GAAP) in the United States. &nbsp;This statement is effective 60 days following approval by the SEC of the Public Company Accounting Oversight Board amendments to AU Section 411, <I>&#147;The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles.&#148; &nbsp;</I>This statement will require no changes in the Company&#146;s financial reporting practices.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">In May of 2008 the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 163, <I>&#147;Accounting for Financial Guarantee Insurance &#150; an interpretation of FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises&#148;. &nbsp;</I>This statement requires that an insurance enterprise recognize a claim liability prior to an event of default (insured event) when there is evidence that credit deterioration has occurred in an insured financial obligation. &nbsp;This statement also clarifies how Statement 60 applies to financial guarantee insurance contracts. &nbsp;This statement is effective for fiscal years beginning after December 15, 2008. &nbsp;This statement has no effect on the Company&#146;s financial reporting at this time.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">We are exposed to changes in prevailing market interest rates affecting the return on our investments but do not consider this interest rate market risk exposure to be material to our financial condition or results of operations. &nbsp;We invest primarily in United States Treasury instruments with short-term (less than one year) maturities. &nbsp;The carrying amount of these investments approximates fair value due to the short-term maturities. &nbsp;Under our current policies, we do not use derivative financial instruments, derivative commodity instruments or other financial instruments to manage our exposure to changes in interest rates or commodity prices.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center>ITEM 4. CONTROLS AND PROCEDURES</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission&#146;s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:61.067px">As required by SEC Rule 13a-15(b), an evaluation was performed under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, our management, including our principal executive officer and our principal financial officer, concluded that the design and operation of these disclosure controls and procedures were effective at the reasonable assurance level.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:61.067px">There has been no change in our internal controls over financial reporting during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>PART II - OTHER INFORMATION</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>ITEM 1. &nbsp;LEGAL PROCEEDINGS</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">None.</P>
<P style="margin:0px" align=center>ITEM&nbsp;1A. RISK FACTORS<A NAME="Item1a_RiskFactors_084009"></A></P>
<P style="margin:0px"><B>&nbsp;</B></P>
<P style="margin:0px; text-indent:48px">For information regarding risk factors, see &#147;Part I. Item 1A. Risk Factors,&#148; in our Annual Report on Form 10-K for the year ended June 30, 2008. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>ITEM 2. &nbsp;UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Pursuant to the terms of his employment agreement, effective August 31, 2008, we issued 25,000 shares of common stock to our chief executive officer. The shares were valued at $4.04 per share, based on the closing price of the shares on the date of the stock award. The securities were issued pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933 as amended.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>ITEM 3. &nbsp;DEFAULTS UPON SENIOR SECURITIES</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">None.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>ITEM 4. &nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">None.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>ITEM 5. &nbsp;OTHER INFORMATION</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Our Annual Meeting of Stockholders will be held in the Sunset Room at the Sunset Station Hotel and Casino, 1301 West Sunset Road, Henderson, Nevada 89014, on December 5, 2008, at 10:00 am, Pacific Time, to:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:48px">1. Elect eight directors to serve until the 2008 Annual Meeting of Stockholders;</P>
<P style="margin:0px; padding-left:48px">2. Ratify the selection of HJ &amp; Associates, LLC as the Company&#146;s independent auditor for the Company&#146;s fiscal year ending June 30, 2009;</P>
<P style="margin:0px; padding-left:48px">3. Transact such other business as may properly come before the Annual Meeting or any adjournment thereof.</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px; text-indent:48px">The foregoing matters are described in more detail in our Proxy Statement mailed to all stockholders and filed with the Commission on or about October 28, 2008.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">ITEM 6. &nbsp;EXHIBITS</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Exhibit 31.01 - CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Exhibit 31.02 - CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Exhibit 32.01 - CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Exhibit 32.02 - CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>SIGNATURES</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Dated: November 14, 2008</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">AMERITYRE CORPORATION</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><U>/S/GARY N. BENNINGER</U></P>
<P style="margin:0px">Gary N. Benninger </P>
<P style="margin:0px">Chief Executive Officer</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><U>/S/ANDERS A. SUAREZ</U></P>
<P style="margin:0px">Anders A. Suarez</P>
<P style="margin:0px">Chief Financial Officer and </P>
<P style="margin:0px">Principal Accounting Officer</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>fqsx311.htm
<DESCRIPTION>08 SEP PRIN EXEC 302 CERT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>EXHIBIT 31</TITLE>
<META NAME="author" CONTENT="User">
<META NAME="date" CONTENT="11/12/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:639.333px"><P style="margin:0px">EXHIBIT 31.01</P>
<P style="margin:0px">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO </P>
<P style="margin:0px">SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">I, GARY N. BENNINGER, certify that: </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">1. </P>
<P style="margin:0px; text-indent:96px">I have reviewed this quarterly report on Form 10-Q of Amerityre Corporation for the quarter ended September 30, 2008;</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">2.</P>
<P style="margin:0px; text-indent:96px">Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">3.</P>
<P style="margin:0px; text-indent:96px">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">4.</P>
<P style="margin:0px; text-indent:96px">The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(a)</P>
<P style="margin:0px; text-indent:96px">designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(b)</P>
<P style="margin:0px; text-indent:96px">designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(c)</P>
<P style="margin:0px; text-indent:96px">presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on our evaluation; and </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(d)</P>
<P style="margin:0px; text-indent:96px">disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">5.</P>
<P style="margin:0px; text-indent:96px">The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(a)</P>
<P style="margin:0px; text-indent:96px">all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(b)</P>
<P style="margin:0px; text-indent:96px">any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Date: November 14, 2008</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">/S/ Gary N. Benninger</P>
<P style="margin:0px">Gary N. Benninger</P>
<P style="margin:0px">Chief Executive Officer</P>
<P style="margin:0px"><BR>
<BR></P>
</DIV></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>fqsx312.htm
<DESCRIPTION>08 SEP PRIN FIN 302 CERT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>EXHIBIT 31</TITLE>
<META NAME="author" CONTENT="User">
<META NAME="date" CONTENT="11/12/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:639.333px"><P style="margin:0px">EXHIBIT 31.02</P>
<P style="margin:0px">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO </P>
<P style="margin:0px">SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">I, ANDERS A. SUAREZ, certify that: </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">1. </P>
<P style="margin:0px; text-indent:96px">I have reviewed this quarterly report on Form 10-Q of Amerityre Corporation for the quarter ended September 30, 2008;</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">2.</P>
<P style="margin:0px; text-indent:96px">Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">3.</P>
<P style="margin:0px; text-indent:96px">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">4.</P>
<P style="margin:0px; text-indent:96px">The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(a)</P>
<P style="margin:0px; text-indent:96px">designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(b)</P>
<P style="margin:0px; text-indent:96px">designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(c)</P>
<P style="margin:0px; text-indent:96px">presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on our evaluation; and </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(d)</P>
<P style="margin:0px; text-indent:96px">disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">5.</P>
<P style="margin:0px; text-indent:96px">The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(a)</P>
<P style="margin:0px; text-indent:96px">all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(b)</P>
<P style="margin:0px; text-indent:96px">any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Date: &nbsp;November 14, 2008</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">/S/ Anders A. Suarez</P>
<P style="margin:0px">Anders A. Suarez</P>
<P style="margin:0px">Chief Financial Officer</P>
<P style="margin:0px"><BR>
<BR></P>
</DIV></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>fqsx321.htm
<DESCRIPTION>08 SEP PRIN EXEC 906 CERT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>EXHIBIT 32</TITLE>
<META NAME="author" CONTENT="User">
<META NAME="date" CONTENT="11/12/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:640.133px"><P style="margin:0px">EXHIBIT 32.01</P>
<P style="margin:0px">CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">In connection with the Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of Amerityre Corporation (the &quot;Company&quot;) on Form 10-Q for the quarter ended September 30, 2008, as filed with the Securities and</P>
<P style="margin:0px">Exchange Commission on the date hereof (the &quot;Report&quot;), I, Gary N. Benninger, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px">&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(1)</P>
<P style="margin:0px; text-indent:96px">the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(2)</P>
<P style="margin:0px; text-indent:96px">the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">/S/ Gary N. Benninger</P>
<P style="margin:0px">Gary N. Benninger</P>
<P style="margin:0px">Chief Executive Officer</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">November 14, 2008</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
</DIV></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>fqsx322.htm
<DESCRIPTION>08 SEP PRIN FIN 906 CERT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>EXHIBIT 32</TITLE>
<META NAME="author" CONTENT="User">
<META NAME="date" CONTENT="11/12/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:640.133px"><P style="margin:0px">EXHIBIT 32.02</P>
<P style="margin:0px">CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">In connection with the Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of Amerityre Corporation (the &quot;Company&quot;) on Form 10-Q for the quarter ended September 30, 2008, as filed with the Securities and</P>
<P style="margin:0px">Exchange Commission on the date hereof (the &quot;Report&quot;), I, Anders A. Suarez, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(1)</P>
<P style="margin:0px; text-indent:96px">the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px">(2)</P>
<P style="margin:0px; text-indent:96px">the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">/S/ Anders A. Suarez</P>
<P style="margin:0px">Anders A. Suarez</P>
<P style="margin:0px">Chief Financial Officer</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">November 14, 2008</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
</DIV></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>6
<FILENAME>amty08sep10qfinal5001.jpg
<DESCRIPTION>AMERITYRE LOGO
<TEXT>
begin 644 amty08sep10qfinal5001.jpg
M_]C_X``02D9)1@`!`@$`2`!(``#_[1&$4&AO=&]S:&]P(#,N,``X0DE-`^T`
M`````!``2`````$``0!(`````0`!.$))300-```````$````>#A"24T$&0``
M````!````!XX0DE-`_,```````D```````````$`.$))300*```````!```X
M0DE-)Q````````H``0`````````".$))30/T```````2`#4````!`"T````&
M```````!.$))30/W```````<``#_____________________________`^@`
M`#A"24T$`````````@`!.$))300"```````$`````#A"24T$"```````$```
M``$```)````"0``````X0DE-!!X```````0`````.$))300:``````!U````
M!@``````````````V````-@````*`%4`;@!T`&D`=`!L`&4`9``M`#$````!
M``````````````````````````$``````````````-@```#8````````````
M`````````````````````````````````#A"24T$$0```````0$`.$))3004
M```````$````!3A"24T$#``````/3`````$```!P````<````5```),````/
M,``8``'_V/_@`!!*1DE&``$"`0!(`$@``/_N``Y!9&]B90!D@`````'_VP"$
M``P("`@)"`P)"0P1"PH+$14/#`P/%1@3$Q43$Q@1#`P,#`P,$0P,#`P,#`P,
M#`P,#`P,#`P,#`P,#`P,#`P,#`P!#0L+#0X-$`X.$!0.#@X4%`X.#@X4$0P,
M#`P,$1$,#`P,#`P1#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#/_``!$(
M`'``<`,!(@`"$0$#$0'_W0`$``?_Q`$_```!!0$!`0$!`0`````````#``$"
M!`4&!P@)"@L!``$%`0$!`0$!``````````$``@,$!08'"`D*"Q```00!`P($
M`@4'!@@%`PPS`0`"$0,$(1(Q!4%181,B<8$R!A21H;%"(R054L%B,S1R@M%#
M!R624_#A\6-S-1:BLH,F1)-49$7"HW0V%])5XF7RLX3#TW7C\T8GE*2%M)7$
MU.3TI;7%U>7U5F9VAI:FML;6YO8W1U=G=X>7I[?'U^?W$0`"`@$"!`0#!`4&
M!P<&!34!``(1`R$Q$@1!46%Q(A,%,H&1%*&Q0B/!4M'P,R1BX7*"DD-3%6-S
M-/$E!A:BLH,')C7"TD235*,79$55-G1EXO*SA,/3=>/S1I2DA;25Q-3D]*6U
MQ=7E]59F=H:6IK;&UN;V)S='5V=WAY>GM\?_V@`,`P$``A$#$0`_`/4V,96Q
MK&-#&,`:UK1``&@:T!22224I)),YS6-+WD-:T$N<3``'))24NDN!^LO^-[HO
M37/QND,_:F2V0;6G;CM/N'\]J[(VN#?YEOHV,_[4KSOJW^,OZX]3<9SG8=1,
MBK$'H@?"ULY/^?>DI^@DP(/!E?+>1EY>58;<FZR^P\OL<7N_SGDH;7.:06DM
M(U!&B2GZI27S=T[ZY_6KIKFG$ZID-:T0VNQYMK`_XG(]6K_H+N?J_P#XZ;0Y
MM/UAQ`YF@^U8HAPTB;<>QVU_[SWU65_\0DI]825/I75^F=8Q&YG3,EF5CN,;
MV'@P';+&&'U6;7?S=C?45Q)2DDDDE/\`_]#U5))))37S\_#Z;AVYV=:VC%H;
MOMM=P!_U3G.=[6,9[['^QB\,^N_^,3J/UEL?B8^[$Z0'>S'!A]H:?99EN;]+
M]_T/YJO_`(5]?JJU_C0^NCNM]2=TG">/V9@/(W-,BZX>Q]W[OI5>ZJC_`+>_
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MB\=6Z(^7#)J(<ZML_P"&]+<RRO\`[L5>S_2UT)*<#H/UAZK]7\YN=TRXU/!'
MJ5G6NQH_P5]?^$9_TV?X+T[%[U]3_KAT_P"M/3_7Q_T675`RL4F7,<?SF_OT
MO_P=B^=%H=!Z[G]`ZI3U/`?MMJ,/8?HV,/\`.46M_.KL_P#4E?Z5C$E/TTDJ
M/1>KXG6NEXW5,,DT9+-P!Y:1[;*G_P`NJQKJWJ\DI__1]57,?XQ?K">@_5C(
MNI>69F5^K8I$@A]@.^UKF^YGHTMML8__`$OIKIUX[_CMZDZWJ^!TP'V8U!O=
M'[]SMD._JLQV_P#;B2GS=7^@]%S.N]6Q^EX8_2Y#H+CPQ@]]MS^/;56US_\`
MJ/TBH+T7ZA[?J[]3NM?6]S1]K</LF"2)@RQN_4[7UNRK:O5_\*)*2?6SK]/0
M:*OJ-]3=S7-<*\[(I]UUM[XK=CA]8W/R7NV^OZ7T/9A5>EZ/HKG;*^C?55WH
MY./5UCK[/YZJP[\'$?/]'L96X?M',K;[<C])]CHM?Z7ZQ90FZ7?9T;H>3]8W
M/=^UNI66873;'$A[!`?U/J3+',]UNVVO#IMKO98RR_(2S/J!UZC`Z=DXV-D9
MEV=3]HNIIH>6TM<?U9CLANYEEUM?Z2RK;6_'24T<OZX_6C,]MG4KZZ@T5BBA
MWH5!C=&L;C8OHT?^!JMB_6'KV'/V7J650"9(KNL:"?Y36O\`<K7_`#+^MO\`
MY3YG_;+_`/R*7_,OZV_^4^9_VR__`,BDIMCZRX/62:?K3C,LLLF.L8K&U9;'
M';M??74*\?J%3?3V>G<SU_3]3TK]ZT^B]:ZG]0>I5LLL'4OJYU(>J#5K5?4?
MT;LC&;9_,YE/\WDXUFSZ'H7_`.`O6/A_4?ZRW9E%.5TW,QL>VQC+<C[-8_TV
MN<&/N]-H:Y_ISO6GB=*RJL[J'^+_`*GM=:7.MZ7:2`&9;6>MC.;9ZC6LQ^J8
MOZ&RI_J_I;<;]'7=6DI;_&%]5<3IMF/UWHI%G0NK`/HV@@5O</5]':X#;78S
M])2WZ;/TU/I_H5QR]&^H%G_.+ZK]8^IF2=UC*SE=.W$C8Z?H[O\`!UUYGH/_
M`/0G(7G*2GTK_$O]8/0S\GH%SXKRP<C%!_TS!^G8WV_X;';ZGT_^TB]@7S-]
M7.IGI/7L#J6YS6XU['V%O)KG;>S_`*Y2;&+Z924__]+U5>!_XUK7/^O&<UQD
M5,H8T>`--5D?YUB]\7@_^-O'?3]=<FQW&1538SX!@H_ZJER2GC5Z%]8IQO\`
M%+T#'8=+\@V/([S]JMVN_M6?]!>>KT/JC7=1_P`3W3,BOWNZ9E%N1'YK2Z^E
MO_G_`!4E.!]<*3B8?U<PFO)I;TJK):PF0+,JR_*O</ZVYG_;:S.D_6+KG17A
MW2\Z[%`=N-;7363$;K,=^ZBW_KE:T?K+8_.Z+]7NIES7-;ANZ<]K3)8_#L?L
M;9^ZZS%R<:Q<ZDI]J_Q<?XQ<CZP7.Z1U=K!U!C-]&0P!HN:V/4:^O\W(;_._
MHOT=E?J?HZ?1_2]/];?K+C?5GHUG4[VFU^X58](T]2UTEC-\'8W:Q]CW?N5_
MOKP[_%_EC#^N?2;3^=?Z/_;S78O_`*.7<?X\<E[:.D8@=[+'WVO;YL%+*W?^
M#6I*>*ZS_C"^MO6"X7YS\>AQ,8^+^A8`1!K)K_36U_\`ABVY8G3LQ^!U#%SJ
M_IXMU=[/C6YMC?\`J576C]7>F/ZMUW`Z<UI<,F]C+-HDBN=U]D?\'2++$E/;
M?5C?@?XX<K%J.VN_(S&.:W0;"VW+8S^RZNI<5]9JJZ/K)U:FH!M=6;D,8T<!
MK;;&M"[/ZAQUK_&AF]6I<314_+RF.(Y9878M+?Y/LR6KA^MYE>?UK/SJI]/*
MR;KV3SMLL?8W_JDE-)?4>#:;L+'N<9-M3'D^)<T.7RXOJ;'J]#'JIF?28UD^
M.T;4E/\`_]/U5>4?X[NE'?T[K+!H0[$N=X1.1C#\<I>KK)^M70F?6#H&7TMT
M"RYDT/=PVUGZ2AVZ'.:WU&_I-O\`@MZ2GYK7?_XL,S$ZCC=3^IG4#%/5JW68
MIB=MS6_I'-;_`*7975DU_P#A-<'?1=C7V8][#7=2]U=M;M"U[3L>QW\IK@GQ
M\B[%R*LG'>:[Z'MLJL;RU[3O8]O]5P24]+@5'$?U'ZE=?>,-MEH?C7VE[:Z,
MZL;,?(>[\W"SJ'^C=D>C9^ALQ\G^;KWKEWL+'N88):2"6D.&G[KV;FN_LKT^
M^GIO^-#IC<C&=7@_6O`KVWT.,,O8/SV?G>CO^@_Z>)9^@O\`T=E&0O..I=,Z
MATK+?A=1H?C9-9AU;Q'>-S'?1LK='LMK_1V?F)*5TS+.#U+$S1SC75W#_K;F
MV?\`?5V?^./J6/F_6+%KQKV7TTX;"36X/`?8^RSZ3"?IT^@_^HN#224I=!TV
M[$Z+T*[J;;J[NK=3;9AXE+'-<[&I/Z/-S+V@.LIR+V?JV)_,_HK;K_TBY]>@
M?53ZBX_3\?\`YS?7,##Z=C$.IPKA[[G#5GK4GW;-WT,7;ZN1_A*_0_GTIL])
MK_YF?XN\OJM_LZK]80*<-DPYM3FN%=@CW,<VI]V7O_\`"E;UYLM[ZY_6S*^M
M'5W9=FZO$JEF'CDZ,9/TG`>WUKOI7._ZW_-U5K!24[GU'Z4[JWUKZ;B0'5BY
MMUP<"6^G3^L6M='^D;7Z7]M?1R\T_P`3/U;?BX>1]8,ENU^:/0Q)Y]%KINLT
M=_AKV,9[V?\`:;_1W+TM)3__U/54DDDE/EO^-CZCNM#_`*S=+K+K&B>I4MUE
MK1`S&L_D-'ZSM_,_3_Z>Q>3KZJ7EOUY_Q3^JZWJGU:8`]QWW=-$`&?INPOS6
M?O\`V;_V'_P>.DI\KQLG(Q;V9&+:^B^H[J[:W%KFGQ:]ON:N\Q/\9N%U/$;T
M_P"NG2V=4I:"&Y536MN;/TG!DU-;8_\`TN-=B+@KZ+\>Y]&16ZFZLEME5C2U
MS7#EKV.]S7*"2GT(]"_Q2]2=OPNM7].>X;O1N!V,_D;KZ?=_[%6IC]3_`/%K
MAC?G_6@WM';%#2=?^*9FN_Z*\^224^BM^MO^+_ZLR?JQTIW4,]GT,_+D`&#%
MM?J[KF_2][*:,/?_`*1<=]8/K-UGZQ97VGJEYLVSZ-+?;56'<MIJ_-_K_P`Z
M_P#PEBRTDE*73?47ZEY7UIZD`[=5TS'(=EY`'(Y^ST_\/;_X"S]+^Y5;9^IW
M^+CJOU@>S+S`[`Z0(<_(>(?8V-WZHQ_TMS?^U+_T'_'>GZ*]KZ%B]&P^G5X?
M134</']@]%P>-VCG>H]I=NM=NWOWI*;E%%./17CT,%=-+1756T0UK6C:QC6_
MNM:B)))*?__5]522224I))))3C]>^J?0/K"R.J8C;;6B&9#?9<T#=M#;F0_8
MW?N])_Z'_@UY_P!6_P`2-H<7]&ZBUS2=*LQI!`\\C':_?_["L7K"22GP7(_Q
M3_7>FPMKPZ\AH_/KNJ`/_;[Z7_\`00F_XK/KT2`>FAH\3?1'_1O<O?TDE/C'
M3O\`$KU^XM/4,S'PZR-0S==8/[$4U?\`@Z[GH'^*_P"JW1G-N?2>HY3=1;E0
M]H,?X/'`%/\`*9ZC;;:_]*NN224TNL8=N;TZ[&JV%[MI#+)]-^QS;#CW[=SO
M0R-GH7>U_P"CL_F[/H+*^JO1<WIK1]I#FBJKT0^U[7W7$D6[\CT=U#*\9_JL
MP]C_`*&1=9=Z=UEGJ=$DDI22222G_]DX0DE-!"$``````%4````!`0````\`
M00!D`&\`8@!E`"``4`!H`&\`=`!O`',`:`!O`'`````3`$$`9`!O`&(`90`@
M`%``:`!O`'0`;P!S`&@`;P!P`"``-@`N`#`````!`#A"24T$!@``````!P`%
M``$``0$`_^X`#D%D;V)E`&0``````/_;`$,`!`,#`P,#!`,#!`8$`P0&!P4$
M!`4'"`8&!P8&"`H("0D)"0@*"@P,#`P,"@P,#`P,#`P,#`P,#`P,#`P,#`P,
M#/_```L(`-@`V`$!$0#_W0`$`!O_Q`!D``$``P`"`P$`````````````!P@)
M!08"`P0!$``!`P,"!`(&!0@(!`<!```!`@,$``4&$0<A,1(((A-!43)"%`EA
M4F(C,W&A<D-38Q46@9%S@R34E5:")1<8P9*BLI,T=";_V@`(`0$``#\`O]2E
M*4I2E*4I2E*4I2E*4I2E?__0O]2E*4I2E*4KX)-]LD)PLS+E%CO#@6W7VVU`
M\^2E`^FNM/[P;2QGEQI.>XZS(:4IMQIR[P4+2M!T4E22\""#S%=@CY+CDHH3
M%N\)]3@!;#4EI94%<M.E1UUUKE-=>5*4I2E*4I2O_]&_U*4I2E*^2Z76V62`
M_=;S-8M]KBH+DF;+<0PPT@<U+6LA*1^4U6#<KOXV=PQ3\'%$R<TNS8(28&C%
MOZ].2I3HXCZ6FW155\W^8!O?D;SS>,?`8E;E\&D1&$S)24_:>E!:2?I2TW4#
MY+N[NEF#KKF39C>+D'5=:V7IS_D:_992H-IY\DI%=-4M:R5+45*/,DZG\]>-
M?H)!!!T(Y$5V7']QMP,46E>,Y3=K04D$)@SI$=)Z==-4H6`1QY$5..'=]O<!
MC#C:;I=(F3P4$=3%VBMA92.8#T;R5ZGUJ*ZM#MU\P_;/(ELP<^M$S$IKBNDS
M&S_$;>-3H"I;:4/)^G[E0'UJM=C.68SFEJ;OF)7>)>K0Z2E$R`\B0UU#FDE!
M.BAZ4GB*YBE*4I2E?__2O]2E*4I55-^.^'!-L7)>-X0AO+LT9U;<+3G_`"J(
MYZ0\^@ZN*3Z6VOI2MQM59W;G[W[F[OSU3,XOS\N+U=3%I9)8MS&G+RXZ#T:C
MZZNISZRS4>TI2E*4I7:<%W(SK;2ZIO.#7V799H(+@C.'R7@GDEYI6K;B?LK2
MH5?S8OO^Q[)%Q<;WBCMV"].*2RUD48'^%NJ4=`9"5$JCGEJK5;7-2BTFKJ1I
M,>9':EPWD2(KZ$N,/M*"VUH6-4J2I)(((X@BO;2E*4K_T[_4I2E?%=[O;+!:
MYE[O4MJ!:;>RN3-FR%!MIIEL=2EJ4>```K,[N6[U[_N$])P_:N5(L>##J9E7
M1'4Q/N:==#QT"V62/<&CBQ^)P/EU3^E*4I2E*4I2K$]NW=KFNR<R-9;JX]D&
MW!44O61U8+L4*/%R&M>O00>/E:^4OQ>PM7F#5/!LYQ;<?&8.7X=<$7*Q3TE3
M+Z-4J2I)T4VXA6BD+2>"D*&HKL5*4I7_U+_4I2OEN=SM]EMTN[W:4U"M<%I<
MF9,D+#;+++22I:UJ5H`E(&I)K*3NM[I[IO7=W<5QAQR#MA;7CY#.O0Y<WFE$
M)DOC@0CTLM'V?Q%_>:!NLU*4I7;\0VJW)SXC^3<5N=Z:)Z?B(D5Q<<'[3V@;
M']*JF.R=B?<7=TA4FQP[0@^FX7".#Z>:8ZGE?FKM;/RZ=ZG(7Q#MYQYJ5TJ/
MPADRE*U&N@ZTQ>GC^6NN7?L*[B+8UYL:V6VZD#4MP;@T%_DTDAG4_DJ)LPV-
MW?P%+CN689=+?$:_$F_#J?B#3T^>SUM?^NH^I2E*F3MX[ALGV#RGX^%UW#$;
M@M*;_82KI0^A/`.M$ZA#R`?"KWO87X?9U[PK-,;W#QBW9AB4Y%PL5S;#L=]'
M,$<%-K3S2M"@4K0>*5#2N?I2E?_5O]2E*S?[Z.Y)S(;J]LSA,[3'[8X4Y7,C
MJ(^*FMG3X34::MLD?>#B%N\/U7BI#2E*FK9/M>W/WN=3+LL,6G%4G1[([DE;
M<4Z$@A@`=3ZAIR1X0?;6BK];=]H.PNS-K%_R],:_W**E*Y=]R532(+2AQU;8
M</DH&O+S/,7]NO1FG?/L'@?5:,>=DY*]$2&VF;$PA,%.@X)2^ZII'2/6V%BH
M,R/YE.2/+4G$L&@PVQ[+MTENRU'CS*&$QP.'VC74U_,8WI5*0\BRXZB,G3KC
M?#2R%<_>,K45V"Q?,FSAA_\`_I<*M4^,3Q%O?D0G`/RNF2#_`%5-F%_,%V7R
M1QN'D\2Y8K(=(0IV4TF9"'5PXNQRI>GK*FA7;LL[>^V_N%LZ[Y9&;?\`$O\`
M%O)<5=8;=#A'ZT,A3:SZTNH*OT:HQO?V8[F[1M/WRUI_FW#6R5*N-N:7\5';
M&IZI,8=12D`<7$%;8]Y2:K=2E*LIV@]QLC9C,$X_DDI9VVR!Q+=Q0M2E(@23
MX43$)XZ#W7P/:;\7$MI%:T-N-NMI=:4%M+`4A:2"E22-001S!KRI2O_6O]2E
M0-W:;VHV8VMEO6Y[HS+(@Y;,=2A0#C3BT?>ROR,(/4.'XJFT^]6/CCCCKBG7
M5%;JR5+6HDJ4HG4DD\R:\:4J\7:IV6'*&(FXV\$1V/8BI+UFQAT%MR8@:Z.R
MP=%):)TZ&^"G!XE:-^W/F_?=Y@.Q+"L(PZ&Q>\T@MH8;L\;1FVVU`2.A+ZFP
M`"D::,-^+3VBWPK-[<S>?<G=VX&?G=^D7!I+A<BVU)\J!')UT#,=&B$Z`Z=6
MA61[2E5]FW.P6[NZVCN%8O*F6_4`W-[IB01^1]\H0K3U(*E?14W1NQF39&D.
M[I[HXQARSXE15/I?>"1S'WRXHU_1ZJ^5SMU[9F7%Q7.XB`9/6E*5HMP6R`>>
MJDR"D\QQZ]!Z:^U?9/8<B1U;7[S8QDLA:>IB&\XB.ZK\OD/25#E]2HGW#[7-
M[]LF'9^0XN](L[7MW2UJ3<(P3]97DDK0GZ7$(KH6$[@YKMQ=TWS![Y+LER&@
M6Y%<*4.)2=0EULZH<3]EQ*DUH;V]]]EAS=Z'B&[+;-@RA\HCQ+VUJFV3'5>$
M!T'7X=:CZSY1/O-\$UQW=)V56O)(D_</9Z&F'DR`9-QQF,E*(LY(!4MR,D:!
M#YY]`\#ON]*_;SCDQI$.0[$ELKCRF%J:?8=24.(<0=%)4E0!!!&A!KU4I6GG
M85OB,UPIS:V_2"O)\1:"K<XZKJ7)LY5TH`U.I,=2@T?4V6?M5<*E*__7O]2E
M8^]X&["MU-YKLJ%(6[C.-J59K,@G[L_#JTD/)`X?>O!1"O>;2W4!TI5SNR3M
MC8SR<C=?/(?FXC;'NFPVUY/W=PF-$A3JP>;+*ARY..<#X4*2J7.\GNR=P9+^
MUFV=P+>9+`3?[S'/BMS:DA0895^W6#XE#\%/[P^#/3%,2RK</)(V.8M;W[UD
M=R</E1VO$M1/B6XM:B`E(]I:UD)3S4:M>C!=@NU&&Q-W5#6Y&]02V^SB$58-
MMMZU`+07RI)2=/K.I45</+CZ>.HKW+[OMZ=Q%/PF+P<6QA:2TS8[#_A&TL\@
MA;R='5\."O&$'ZB:@AUUU]Q3SZU..K.JW%DJ42?22>)KPK]!*2%).A'$$<#4
MN;;=S>].UJF&<=R9^39F3K_!;H3.@E/I2$.DJ;!_=+;J=8]T[=N[=2X%V@M;
M5;WR]$PKA'/5:KG)("0E8T0DJ41[*O+>X^%U[V:K)NEM-F^SN3.8OF]O,27H
M7(<M!\R)+8!T#K#NFBDGTC@M'LK2E7"K5=G'=M*L,Z'M5NC<E/8])+<7&KU)
M)4J$Z=$-QGEGCY"N`0I7X1X'[OV.\]\/;''O-NF[T8)"Z;["1YV5VZ.GA*C(
M'BF)2/UC8_%T]MOQ^T@]><M*5WK9S<>=M/N5CV=PU.%JV2D&X1V3HI^"YX)+
M.A(!ZFRKIZN'7TJ]%;=6VXPKO;HEVMSR9%OGLMRHCZ#JEQEY`6A0^@I(-?52
MO__0O]2HI[D]PG]L-E<LRN"Z&;NB*(5J7J.I,R<M,=M:0>9;Z_,T]2*Q8)))
M).I/$DU^4KONS&V-TW?W'LF"VP%*)SP<N,D<H\%GQOND_0@:)]:RE/IK3ON)
MW6L7;-LY&M&(-L0KZ^P+/AUL0!HR&T!*Y!3Z0RD]1*O;=4CJ]HUE!:;5DF>9
M/'M5L:?O&47Z5T-(U+C\B5(5J5*4H\222I2E'UJ55PLNRC'NR_"5;9[?N,7'
M?N_QDN9;E:0%BVM.CJ0RR%:Z*`/W:"/W[G-M%4LG3IMSF2+C<9#DN?*<4])E
M/K4XZZZX>I2UK425*).I)KYZ4I2@)!U'`CD:N'LUN]CF^N+L]NN_SQ?D2#Y>
M"YL\0J9#G%/2RTZXLZDDZ);43]Y^"YS0H5MW0VUR7:7-;EA&4L^7<(*]67T@
M^3)C+)\J0T3S0L#4>E)U2KQ)-:(]CV_G_4O#7ML\PE)E9=C;`1%5(/6Y.L^@
M;25=6O6MDD-N:^T@MJ.IZS5->[79;_HUNK,C6R.&<.R`*N>/='X;;:U:/1AZ
MO)6=`/V:F_74#TI6KW8=N&_FFR+-CN#_`)USPZ4NT#J4"Y\"4I>BD@<0E*5*
M:3PY-?15H*5__]&_U*H?\RC+7&;-@^"LJ^[F295YEI!X_P"%0F.QJ->1\]WF
M/=K/&E*T>^7/MJQ;\4OVZ<UK_F-YD&T6M9!U3"B%*WE)_M'B$G^QJKG>#NH]
MN?O5>C&D>=CF-K59+,E)U;Z8RM'W4Z<#YCW6KJ]*.CU5(G;?:K?LEM)DO=)D
ML9#UY4ERR;=PWM2')CW4TX]H#R*@I'K\IM_ZPJM5LM^8[O9^S`84[><TRJ>>
MIUU6JW9,A14MQ:CP"4C52C[*$#U"N2W@VGR+9?-9.$9,_$E3V6VY+4B"Z'6G
M&'M?+40=%H40/8<2E7I]DI4>ATI2E<[A>(W?/<KM.'6'R?XQ>I"(D/XIU,=G
MS%\NI:^`Y<N*E>RE*E$)KGMVMJLJV5S>5AF3A(G1@B1#GQRKR),=SBAYE1`.
MFH(X^)*TJ3Z*LCD2E=U';0,R=Z9.\6TJ/)O+O)Z?90DK+BOK*Z$EW7]HT]T_
MBU6O9[<6X;4[D8_G-O6M*;9*09S2/UT%P]$AHCT];94!]K0^BM*>]'`[=NCL
M$]EUH`E3L;0WD-HE-@J+D%U*?B`-/=4RH._W::R>I2KA_+KS!=GW:O.(NN=,
M/);4I:$$^U+MJPXWZ?V3C]:=TK__TK_4K*3O^O*[GW!28!=ZV[-:H$-"/V?F
M)5*(Y#GY^O\`357*4K8>VE.QO:6T^G_#3<=Q,R.&B2+G(CES^LR7:R"@0Y5W
MN4:WQP7)LY]MAH'4E3KRPE/T\2:M5WLW*%BCF`[!V!P_P3`[.RY,2.3D^6D#
MK5ZU="?,_OU5'/;#O1B6QF;R<NR7&W[](=C?!P945]#;L)+I^^6AIQ/2XI:=
M$<5HZ4]7UZMO9H78EOQD,K(9\D_SG?7R_,CWVY7&W2EOKT\*?,D)9.@T2E#2
MU)`'2GA4HI[(NVA:0M&)N*0H`I4+G<2"#R(/Q%>7_8_VU?[1=_U.X_YBG_8_
MVU?[1=_U.X_YBG_8_P!M7^T7?]3N/^8I_P!C_;5_M%W_`%.X_P"8J,\XVP[#
M-IY/7D3C4*^0U)>:A0+M<Y5Q0Z@]2"&XTA:T*!&J2KIJN7=CW'X#OLS9H.+X
MU,BR["ZM+&27%UM,EZ(M.BF5,H"STE02X%*=U!U\/C57#]EV<MXEO=;;+</O
M+!F;+F.W*.KV%F6-6-1_:I2C]%:JBW=_"D[=;GY7A+1)C6:Y/QXA5KJ8I5UL
M$Z\=2VI-:?=H.01=Q^VBS6BYJ$DP6)F-7)M1ZCY314AM!'_YW&Q64646*5B^
M2WC&IJ2F99YLFWOI/`AR*ZII7YTUQ-*ECMDO2[!O_M[/0L-]=XCPEJ/+HGZQ
M%#B#S#I%;34K_]._U*QR[PWG'^Y+/5.$DIE16TZ^A*(,=(']0J#J5S6(0!=<
MML-K4`1-N,.,03H-'GT(XG^FM2^_&Z+M?;K=(K)*$W*X6Z"H)UTZ`]Y^AT(X
M?<UGKVP6)K(M_P#`+:^T'F4W5N8XV02"(*52N(!'`>57GW27M5_[@]P9Q65I
M:NKL%!5KP3;TIB@#73A]U40TJ3-L=_\`=?:2:S(Q#(9";>VI)=LLQ:I5N=0G
MW5,+)"=>74WT+]2JU2[=]_;#OYAIO<)H6_([<I,>_P!F*PHL/J3JEQL\U,N<
M?+4>/!2#Q34P5TG=C=#&]GL'N.<Y.M1A0P&XT1HI#\J4YP;8:"B!U*(_X4A2
M^2:REW=[J]WMW9CZ)UX=L>-+4?(QZTN+CQDHY`.K20MXZ<RXKIU]E".50B22
M22=2>))I7+8O=UV#)K-?6U%*[7.BS4J3P(,9Y+FH_P#+5C>_JUQXF^Z;O%:"
M&;_9+?</,"2GS%#S(_4=?3TLIJ>/EK71;N'9U92241+E#EI3QT!EL+;.G']P
M/151^ZRWBV]Q&X,<``.7,R>!U_\`MM-OG_WU#E*[/MO(<B;B8C*9.CK%ZMSC
M9XC12);9'+Z16Z]*_]2_U*QI[MF2QW&;@(+JW=9[;G4Z>I0\R,ROI!T'A3KT
MI'H2!4+TKLVW*T-;A8FXXH(;1>;<I:E'0`"4V22:TQ^8(TXYV_J6A)4EJ]V]
M;A'NI*7D:G^E0%4<[.)+47N2P1;Q(2N1+:3H-?&[`D(3^<UU/N"CNQ=\]QFG
MAHO^8KFO0'7PN2EK3R^@BHWI2K(]C6:/XGO_`&:W%Y3=NR=B1:);8U*5+4V7
MF"1ZPZVD`^CJ-:VUF]\R#,Y$S-L5P-E]7P-JMZKK)CC4),J:ZII)5ZREMGP^
MKK5ZZI%2E>QAI;[[3+8U<<6E"`>'%1T%6Q^8*XE.Z^,6]7"3"Q:$U(3Z`HR9
M)X'TU*_RT671:-Q9!2?)7)M:$K]!4EN42/Z`H56+O`6ASN0SU3:@I(EQTD@Z
MCJ3"821_01I4(4KG\&:\[-<;9ZUM>9=(*/,;/2M/5(0.I)XZ$>BMWZ5__]6_
MU*R#[V;2NU]R.7+4`&[@F!-:T(.J7(+*2>'+Q(55?:5]-OF.6^?%GL_BQ7FW
MV]/K-*"AZ_2*UQ[H;='W,[6K]=[?JI"K9#R:$4^+[N/Y<L\OW7766NU.4*PG
M<O$LL!2E%HNT.4\5^SY*'D^9K^5'54L][F*.8SW!W^8ELI@9&S%O,)S3P+#S
M0:=*2.?WK3E5VI2N[[-WE6/[M8->DGI$*^VUU9_=B4V%^@^Z3Z*W'K(+O7O/
M\8[C\M`.K=O$*`W]'DPVBH<A[ZE57ZE*[_LAB;V;[NX7C#39=1-NT0R4@=6D
M9EP//J(]0;0HFN]]Y66#+>X;+'&RDQK.MFS,%''7X%L)<U/K\TN5<;Y=N+KM
M.SMUR1T:+R&\.J9^EB"VE@'_`.3S:H#OOD;&6;S9UD$577$F7J;\,O@>IEIT
MM-GAZTH!J/:5WG9>U&][OX':M-4RL@M:'-=/P_BVROG]D&MQ:5__UK_4K-#Y
MCF)_PW<O&<O;!#5^M2HCHT.GGVQWB=3PXH?;&@^K5,*4K6[M%RB!NKVV6^P7
M,!TVN/)Q.[-$A74RVWT-\/48[K8X^G6LL<ZQ&YX#F-\PR\(Z+C9)CT)[U*\I
M1"5C3W5IT6GZ%5:3<U!W[[4<4W0BK,G--L";%E*!H75P5="$O*Z>)T`9<UT]
M][ZM4[I2O;&D.1)+,ID]+S"TNMGU*00H?G%;S8W=DW[';1?$#1%SA1IJ0#KP
MDM)<''0?6]58H[WWT9-O#G5\2=6Y=\N"FB.(\I$A:$>@>ZD>BNA4I5NNT.UQ
M-ML0SWN9R)(3"QN"]:<9;<T3\1=)(3J$=6FIU4VUP_:K^K55)4FZ9)>GI<@K
MFWJ[RE.NJ`U<>E2G"HG0>E2U5KRUY7;9VL)$D)1/Q7'_`+Q*-`%W>4.(!UX]
M4E[GZJQY6M;BU..$J6LE2E'F2>)->-*L)V3XHK*>X?&G"GJBV%$F]2>?`1FB
MALZCU/.-UKU2O__7O]2JI]_^!G*=E$Y/&1U3\/G-3E:)ZEF'+(BOI&G(!2VG
M%?9;K*VE*MIV$;NMX/N:_@MXDAFP9HA##!<.B&[JQJ8YU]'F)*VOI66Z[]\P
MO99V//@[UV..5198:MF3A`UZ'D#IBR#Z@I(\E1^LEOZ]5_[7]ZH^TF;N0<G_
M`,3MIE37\,RVWN(\YDL.!2$/EO0Z^65GJ`'B:4XGGTU\_<EL7(V9RYMZU."X
M;=Y(%3\2N[:@XAR,H)665*!.JVPM/B_6(*7!S(3"M*5LQL+E/F=LV(9,\L*_
MAV-I\Q>O#_E;*F3J=/W/'A_76-DF0Y+DO2GCJZ^M3KA]:EDJ/YS7JI7?]F]I
M<DWISJ!A6.)Z"]]_<IZQJU#@MJ2'7U\1KIU`)3[ZRE/IJ7NZO<_'`Q9=@=K'
MDC;7!$)9F/,>S<+NUU(==6H>WT$J\7);JW%\1T&OJ[&MEW=Q-S6\UNT<JQ/"
MW&YA6H>!^Z`]49D:C0]!'G+_`$4`^W4L_,4W<;*;-LW9Y`4L*3>,D2@@E.@T
MB,*]1XJ=4G^R56?]*5H/\MO`RW#S#<N2@:ON-6"W*(/4$M!,F2=2--%%3`&A
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M3I_X5Q=*5(%FWOW5Q_`INV5GR:5%PF?YB9%L0&SHA_4NMMNE)<;0X2>M"%I2
MK56H\2M8_I2N4L&29!BLY5SQJYR;3<%LNQ5R8;JF'"Q(04.-E2""4J2="*YO
M;+;;)]V<RM^%8G&+]QFJU>>/X,:,DCS'W5>A"`=3Z^"4ZJ4D5JW)>V_[.MA]
M&@%QK2STM#3HD7:]/HYJTU\3JTZJY^4TGZK=9(YEEM[SS*;MF.1O?$7J\R5R
MYC@'2GJ6>"4#T)0`$H'H2`*X.E>QAA^4^U%BM+>DO+2VRRVDK6M:SHE*4C4D
MDG0`5MGL/MNQM1M/C.%);")T2(EZ[*!)Z[C)^^DG4\=`XHI3]A*14CTK_]&_
MU*5GK\PW9EYF?;]Z[)'4N+)2W:\HZ!J&W4:(B2%:#@%C[E2CPZDLIYKJA=*5
MWC:;=7*=G,T@YIBKVDF.?+F0ED_#RXJ_Q&'0.:5#D>:%=*T\4UJC;+ILUWE[
M5.,O-?%0E%(EP5J2W=+1/T/2H%.O2KF4+&K;J.!ZAUHK-W??MJW`V*NCBKM'
M5<L.><Z+;DT5),9SJXI0\.)9=T]Q?!7ZM2Q4,4I2E*5(.TNR^?;TW]-CPFW*
M?;;4C^(W5[5N##;6?;>=T.G#4A">IQ?N)-:@X#MYM+V?;93+W=9C;+R6D+R'
M(Y`_Q4Z2!X66$:D@%6H981^DKJ5U+K.'N,[@+]OUF:[H_P"9"Q&W%3..V8G0
M-,D\770"4E]SFM0Y#1"?"FH;I2K3]C&R[VX>Y[6;W:,HXEA2T32XM)\M^Z@]
M45D$\#Y9^_7I[/0V%?B"M5Z4K__2O]2E<)F&*6;.L6N^'Y"S\19;U%<AS&QP
M5T.ITZD'CHM)T4A7NJ`56+.\>U.0;,Y[<L'R!/6J,KSK=.2-&Y<%Q2@R^D:G
M3J`T4GW%A2/=KH5*5W#;;<_--ILE8RG"+DN!<&B`^R=51I+0/%J0UJ`X@^H\
M1[22E7&M,MF^[;:??:V)Q',V8MDR>8T&9MBN_EKMLY1'B$9QW5*P2-0TX`YZ
MNO3JKH.\/R]<9R!Z1>MI+FG';@ZHN*L<_K>MA)U)#3B0IUD<1HG1U/JZ15,L
M][:][-N'EIR+$)SD-)\-RMS9N$-0YZ^;'ZPGER7T*^BHJ<;<96IIU"FW$G12
M%`I4#](->-?H!)``U)X`"I`PG8W=O<.2W'Q+$+E-;<TTF+85&AI"O2J0_P!#
M0'_%5OMI?EU*2ZS==X[TE;8*5_R]95J\7I*7Y2DI(^D-)_1=J?MP-\=BNUO'
M&\7MC$9%PCITA8A8@U\1U].@7((.C>N@ZG'27%<PERLT]Z]^\\WSOW\4RJ5Y
M%ICJ)M=@BJ4(,5/$`A)/C<(/B=5XE?93X1%U*5S.)8K?<XR6V8EC,54V^W=]
M,6%'3PU6KF5$\$I2`5+4>"4@J-;1[);4VO9C;BT8);5B0]$27KG/">@RISYZ
MGG2.>FOA0"24MI0GT5(5*5__T[_4I2H/[G.WNU[]848K'EQ,XLZ7'\<N2]$I
M+BD^*,\K0GR72!J1["@E8UT4E605^L-XQ>]3L=R"&Y;[U;7EQIT-\=+C;K9T
M(/K]8(X*'%/"N.I2E3[M1WA;S[5,M6QBYIR+'&NE*+3?.N2&T)]UEX*2ZV-.
M2>I2!]2K;8/\Q;;*[M(9SJQW'&YNB0MZ*$W*&3[QU3Y;H_)Y2ORU)`WF[/\`
M<IPN72\8M<9#H(4J_1&H[A&AU!5<&6SR'KKP_DWLKF(5=4Q<!6R=7"\B1;DM
M^#F=$N!(`T]5>2MQ^S7;_P`N7!N&%P76P7&G+/&B27DZG7A\$TXL'45TW,_F
M$;,6!MQK%(ERRJ:@Z-^4S\!$5])=D:.`?D9555-T.^C>7<!AZV6)YG#+([J%
M-V@K^.4@@CI5+6>H?W26JK*\\])><D2'%/2'5%QUUQ14M:U'4J4HZDDGF37A
M2E>;33K[J&64*<><4$-MH!4I2E'0``<22:U.[-^V(;2649YF<8?]1KTQTHBK
MZ5?PN$YXO*&GZYP:%X^[^$G]85VMI2E?_]2_U*4I5<>Z7M;L^^5G5?[$EJW;
MF6UGI@3CX6IK38)$621ZR?NW>;9^QPK*/(\;ON(WJ9CF36]ZUWRWN%F9"DIZ
M'&UC\Q!YA0\*AQ3PKBZ4I2E*4I2E*]L:-)FR&8<-E<B7(6EIAAI)6XXXL]*4
MI2D$E1)T`%:7]HO:"WMZB+N5N;$2YG2P'+/9W-%HM:3J/,<T)2J0H'A^Q_M/
M9N52E*5__]6_U*4I2HAWT[<\!WXM*6<A9,')8C91:\CB)2);'$J"%Z\'6M3Q
M;5ZST*0H]599[Q]O6Y6R5S<CY5;5/V(KZ861PDK=MKX5[(\SI'EK]'EN=*M?
M9ZD^(Q72E*4I2E*5W7;7:7/]V[TW8\%LSUQ=ZT(E3>DHA14K/MR'R.A"0-3I
M[:M/`E2N%:?]NW:1A>R#,?(+CTW_`''+9#]X<&L>(7!HM$)M0'0-#TEU7WJ_
M%["%>75@(MRMTYQUJ%,8DNL'I?0RXAQ2%>I023H?RU]5*4I7_]:_U*4I2E?)
M<[7;;U;Y%IO$-FX6N8@LRH4IM+S#K:N!2M"P4J!]1%4VWB^7QB&1"3>=I9_\
MM7E?C%DFJ6]:5J](0L!3K.O]ZCT!":I#N1V_;N[4..*S+&)3%M1KI=XH^+MY
M2"!J7V>I*-=>`<Z%?9J,Z4I2E*[K@6T6Y6Y\H1L$QF=>!U="Y;3?1#;4--0Y
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MD^6[M[-4MS%<NNMH4I6J6IK3%Q:2./`=(C*]7-1J/YGRU,J0\1;\^M[\?7PK
M?@O,+(T'-*771S^U7`N?+?W=#BPSD^-K:"B&U+=GH44Z\"4B(H`_1J:YF-\M
M;,E+0)>=6QI!T\PM1)#I'+70*4C73T<17>,?^6OB$=?5E.<W&XHX?=VZ(Q`Y
M:ZZJ=5*Y\/14X8?V?=O>&J;?BX@S=9K83_BKTXY<2I2?>+3RBR"?LMBIOC18
MT)A$:&RW'C-C1MEI(;0D>H)2`!7MI76,ZP>UY[9?X3<'GH4EE9?MUTB%"941
M\H4T5MEQ*TD*;6MIQ"TJ0ZTM;:TE*JC^)L._+?M<?+;]&N&.6:(W:HMGM=H9
MM"9%L84VMN%+=2Z\IR,%M(46&_);7T]*TJ05(5,X``T'`#D*4I2O_]"_U*4I
M2E*4I2E*4I2E*4I2E*5__]&_U*4I2E*4I2E*4I2E*4I2E*5__]F'`!8D`1<D
M`4EF`0````&6```A=@`":`$UU@4``0.T$C76!0$"`[02(W8``K02.E80``*6
M;``#-`$*=```X`$3UC````#_`````````/\`````````_P````````#_````
M`````/\`````````_P`````4]@*($Q4V`376!0`"`L0)9C0!BE0!`(<`%B0!
M%R0!268!`````98``"%V``)H`376!0`!`[02-=8%`0(#M!(C=@`"M!(Z5A``
M`I9L``,T`0IT``#@`1/6,````/\`````````_P````````#_`````````/\`
M````````_P````````#_`````!3V`H@3%38!-=8%``("Q`EF-`&*5`$`AP`6
M)`$7)`%)9@$````!E@``(78``F@!-=8%``$#M!(UU@4!`@.T$B-V``*T$CI6
M$``"EFP``S0!"G0``.`!$]8P````_P````````#_`````````/\`````````
M_P````````#_`````````/\`````%/8"B!,5-@$UU@4``@+$"68T`8I4`0":
M`!8D`1<D`4EF`0````&6```A=@`":`$UU@4``0-V%#76!0$"`_(0(W8``784
M(W8!`O(0.E80``*6;``#-`$*=```X`$3UC````#_`````````/\`````````
M_P````````#_`````````/\`````````_P`````4]@*($Q4V`1CV`P``-=8%
M``$"KPHUU@4!`@+9"&8T`8I4`0":`!8D`1<D`4EF`0````&6```A=@`":`$U
MU@4``0-V%#76!0$"`_(0(W8``784(W8!`O(0.E80``*6;``#-`$*=```X`$3
MUC````#_`````````/\`````````_P````````#_`````````/\`````````
M_P`````4]@*($Q4V`1CV`P``-=8%``$"KPHUU@4!`@+9"&8T`8I4`0"P`!8D
M`1<D`4EF`0````&6```A=@`#:`$UU@4``0-&%S76!0$"`V('-=8%`@,#P`8C
M=@`!1A<C=@$"8@<C=@(#P`8Z5A```I9L``,T`0IT``#@`1/6,````/\`````
M````_P````````#_`````````/\`````````_P````````#_`````!3V`0``
M%38!&/8#```UU@4``0-&%S76!0$"`V('-=8%`@,#P`9F-`&*5`$`L``6)`$7
M)`%)9@$````!E@``(78``V@!-=8%``$#1A<UU@4!`@-B!S76!0(#`\`&(W8`
M`487(W8!`F('(W8"`\`&.E80``*6;``#-`$*=```X`$3UC````#_````````
M`/\`````````_P````````#_`````````/\`````````_P`````4]@$``!4V
M`1CV`P``-=8%``$#1A<UU@4!`@-B!S76!0(#`\`&9C0!BE0!`+``%B0!%R0!
M268!`````98``"%V``-H`376!0`!`T87-=8%`0(#8@<UU@4"`P/`!B-V``%&
M%R-V`0)B!R-V`@/`!CI6$``"EFP``S0!"G0``.`!$]8P````_P````````#_
M`````````/\`````````_P````````#_`````````/\`````%/8!```5-@$8
M]@,``#76!0`!`T87-=8%`0(#8@<UU@4"`P/`!F8T`8I4`0"P`!8D`1<D`4EF
M`0````&6```A=@`#:`$UU@4``0-&%S76!0$"`V('-=8%`@,#P`8C=@`!1A<C
M=@$"8@<C=@(#P`8Z5A```I9L``,T`0IT``#@`1/6,````/\`````````_P``
M``````#_`````````/\`````````_P````````#_`````!3V`0``%38!&/8#
M```UU@4``0-&%S76!0$"`V('-=8%`@,#P`9F-`&*5`$`L``6)`$7)`%)9@$`
M```!E@``(78``V@!-=8%``$#1A<UU@4!`@-B!S76!0(#`\`&(W8``487(W8!
M`F('(W8"`\`&.E80``*6;``#-`$*=```X`$3UC````#_`````````/\`````
M````_P````````#_`````````/\`````````_P`````4]@$``!4V`1CV`P``
M-=8%``$#1A<UU@4!`@-B!S76!0(#`\`&9C0!BE0!`+``%B0!%R0!268!````
M`98``"%V``-H`376!0`!`T87-=8%`0(#8@<UU@4"`P/`!B-V``%&%R-V`0)B
M!R-V`@/`!CI6$``"EFP``S0!"G0``.`!$]8P````_P````````#_````````
M`/\`````````_P````````#_`````````/\`````%/8!```5-@$8]@,``#76
M!0`!`T87-=8%`0(#8@<UU@4"`P/`!F8T`8I4`0"P`!8D`1<D`4EF`0````&6
M```A=@`#:`$UU@4``0-&%S76!0$"`V('-=8%`@,#P`8C=@`!1A<C=@$"8@<C
M=@(#P`8Z5A```I9L``,T`0IT``#@`1/6,````/\`````````_P````````#_
M`````````/\`````````_P````````#_`````!3V`0``%38!&/8#```UU@4`
M`0-&%S76!0$"`V('-=8%`@,#P`9F-`&*5`$`L``6)`$7)`%)9@$````!E@``
M(78``V@!-=8%``$#1A<UU@4!`@-B!S76!0(#`\`&(W8``487(W8!`F('(W8"
M`\`&.E80``*6;``#-`$*=```X`$3UC````#_`````````/\`````````_P``
M``````#_`````````/\`````````_P`````4]@$``!4V`1CV`P``-=8%``$#
M1A<UU@4!`@-B!S76!0(#`\`&9C0!BE0!`+``%B0!%R0!268!`````98``"%V
M``-H`376!0`!`T87-=8%`0(#8@<UU@4"`P/`!B-V``%&%R-V`0)B!R-V`@/`
M!CI6$``"EFP``S0!"G0``.`!$]8P````_P````````#_`````````/\`````
M````_P````````#_`````````/\`````%/8!```5-@$8]@,``#76!0`!`T87
M-=8%`0(#8@<UU@4"`P/`!F8T`8I4`0"P`!8D`1<D`4EF`0````&6```A=@`#
M:`$UU@4``0-&%S76!0$"`V('-=8%`@,#P`8C=@`!1A<C=@$"8@<C=@(#P`8Z
M5A```I9L``,T`0IT``#@`1/6,````/\`````````_P````````#_````````
M`/\`````````_P````````#_`````!3V`0``%38!&/8#```UU@4``0-&%S76
M!0$"`V('-=8%`@,#P`9F-`&*5`$`L``6)`$7)`%)9@$````!E@``(78``V@!
M-=8%``$#1A<UU@4!`@-B!S76!0(#`\`&(W8``487(W8!`F('(W8"`\`&.E80
M``*6;``#-`$*=```X`$3UC````#_`````````/\`````````_P````````#_
M`````````/\`````````_P`````4]@$``!4V`1CV`P``-=8%``$#1A<UU@4!
M`@-B!S76!0(#`\`&9C0!BE0!`+``%B0!%R0!268!`````98``"%V``-H`376
M!0`!`T87-=8%`0(#8@<UU@4"`P/`!B-V``%&%R-V`0)B!R-V`@/`!CI6$``"
$EFP``S\_
`
end
</TEXT>
</DOCUMENT>
</SUBMISSION>
