PRIOR PERIODS ADJUSTMENTS (Tables)

6 Months Ended

Jun. 30, 2012

Prior Periods Adjustments Tables

Company's financial statements

The effects of the restatement on the Company’s financial statements as of and for the three and six months ended June 30, 2011 and for the period from January 1, 1999 (inception) to June 30, 2011 are as follows:

BALANCE SHEET AS OF JUNE 30, 2011
	As Previously Reported			Effect of Restatement			As restated
Warrant liability	$	-		$	54,795		$	54,795
Redeemable and convertible preferred stock (under mezzanine)	$	-		$	1,883,313		$	1,883,313
Preferred stock	$	18,775		$	(18,775	)	$	-
Common stock	$	1,553,628		$	-		$	1,553,628
Additional paid-in capital	$	4,077,068		$	(1,516,060	)	$	2,561,008
Accumulated deficit	$	(3,626,121	)	$	-		$	(3,626,121	)
Deficit accumulated during the development stage	$	(512,771	)	$	(403,273	)	$	(916,004	)
Stockholders' equity (deficit)	$	1,510,579		$	(1,938,108	)	$	(427,529	)

STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2011
	As Previously Reported			Effect of Restatement			As restated
Change in warrant liability expense	$	-		$	3,489		$	3,489
Net (loss) income for the period	$	(48,010	)	$	3,489		$	(44,521	)
Accretion of preferred stock to redemption value	$	-		$	(33,335	)	$	(33,335	)
Net loss attributable to common stockholders	$	(48,010	)	$	(29,846	)	$	(77,856	)
Net loss per share – basic and diluted attributable to common stockholders	$	-		$	(0.01	)	$	(0.01	)

STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2011
	As Previously Reported			Effect of Restatement			As restated
Change in warrant liability expense	$	-		$	32,445		$	32,445
Net (loss) income for the period	$	(70,022	)	$	32,445		$	(37,577	)
Accretion of preferred stock to redemption value	$	-		$	(66,670	)	$	(66,670	)
Net loss attributable to common stockholders	$	(70,022	)	$	(34,225	)	$	(104,247	)
Net loss per share – basic and diluted attributable to common stockholders	$	-		$	(0.01	)	$	(0.01	)

STATEMENT OF OPERATIONS FROM JANUARY 1, 1999 (INCEPTION) TO JUNE 30, 2011
	As Previously Reported			Effect of Restatement			As restated
Change in warrant liability expense	$	-		$	86,232		$	86,232
Net (loss) income for the period	$	(512,771	)	$	86,232		$	(426,539	)
Accretion of preferred stock to redemption value	$	-		$	(489,505	)	$	(489,505	)
Net loss attributable to common stockholders	$	(512,771	)	$	(403,273	)	$	(916,044	)

STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2011
	As Previously Reported			Effect of Restatement			As restated
Net (loss) income	$	(70,022	)	$	32,445		$	(37,577	)
Change in warrant liability	$	-		$	(32,445	)	$	(32,445	)
Net cash used in operating activities	$	(55,898	)	$	-		$	(55,898	)

STATEMENT OF CASH FLOWS FROM JANUARY 1, 1999 (INCEPTION) TO JUNE 30, 2011
	As Previously Reported			Effect of Restatement			As restated
Net (loss) income	$	(512,771	)	$	86,232		$	(426,539	)
Change in warrant liability	$	-		$	(86,232	)	$	(86,232	)
Net cash used in operating activities	$	(512,438	)	$	-		$	(512,438	)