10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2012

or

£ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission File Number: 000-50356

EAST COAST DIVERSIFIED CORPORATION

(Exact Name of registrant as specified in its charter)

Nevada	55-0840109
(State or other Jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

810 Franklin Court, Suite H

Marietta, Georgia 30067

(Address of principal executive offices)

(770) 953-4184

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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.    Yes  T    No £

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes T No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act:

£	Large Accelerated Filer	£	Accelerated Filer
£	Non-Accelerated Filer	S	Smaller Reporting Company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes £   No T

As of August 10, 2012, there were 984,772,657 shares outstanding of the registrant’s common stock.

EXPLANATORY NOTE

The purpose of this Amendment No.1 (the “Amendment”) to East Coast Diversified Corporation (the “Company”) quarterly report on Form 10-Q for the period ended June 30, 2012, originally filed with the U.S. Securities and Exchange Commission on August 14, 2012 (the “Form 10-Q), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.

No other changes have been made in this Amendment to the Form 10-Q. This Amendment speaks as of the original date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to rule 406T of Regulation S–T, the interactive data files on Exhibit 101 attached hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Act of 1934, as amended, and otherwise are not subject to liabilities under those sections.

Item 6. Exhibits.

Exhibit No.	Description
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase*
101.DEF	XBRL Taxonomy Extension Definition Linkbase*
101.LAB	XBRL Taxonomy Extension Label Linkbase*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase*

*furnished herewith

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:  September 11, 2012	By: /s/ Kayode Aladesuyi
	Kayode Aladesuyi
	Chief Executive Officer (Principal Executive Officer) Chief Financial Officer (Principal Financial Officer) (Principal Accounting Officer)

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6. Commitments and Contingencies (Details) (USD $)	Jun. 30, 2012
Commitments and Contingencies Disclosure [Abstract]
2012	$ 12,978
2013	26,735
2014	27,550
2015	28,366
2016	29,219
2017	15,054
Total	$ 139,902

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3. Related Parties

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

NOTE 3 - Related Parties

Loans payable – related parties at June 30, 2012 and December 31, 2011 consist of the following:

	June 30, 2012		December 31, 2011
Unsecured non-interest bearing note payable, due on demand, to Frank Russo, a Director of the Company.	$	409,979	$	409,979
Unsecured note payable to Edward Eppel,  a Director of the Company, which bears interest at 10% per annum and is due on demand.  Accrued interest is equal to $23,652 and $15,763, respectively.		197,208		189,319
Unsecured non-interest bearing note payable, due on demand, to Anis Sherali, a Director of the Company.  During the six months ended June 30, 2012, Mr. Sherali loaned an additional $56,500 to the Company and converted the entire note balance of $87,500 preferred stock.		–		31,000
Total	$	607,187	$	630,298

Frank Russo, a Director of the Company, is a holder of an unsecured non-interest bearing note of the Company.  At December 31, 2010, $422,006 was due to Mr. Russo.  The Company repaid $0 and $12,027 to Mr. Russo during the six months ended June 30, 2012 and the year ended December 31, 2011, respectively. During the six months ended June 30, 2012, the Company converted $10,000 of accrued board compensation due to Mr. Russo into 102,041 shares of Series A Preferred. Additionally, during the six months ended June 30, 2012, Mr. Russo converted 6,922,685 shares of common stock owned by him into 346,134 shares of Series A Preferred.

Edward Eppel, a Director of the Company, is a holder of a note of the Company which bears interest at 10% per annum. At December 31, 2010, $173,256 was due to Mr. Eppel.  The Company borrowed $0 and $299 from Mr. Eppel during the six months ended June 30, 2012 and the year ended December 31, 2011, respectively.  $7,889 and $15,763 of interest was accrued and included in the loan balance for the six months ended June 30, 2012 and the year ended December 31, 2011, respectively. During the six months ended June 30, 2012, the Company converted $10,000 of accrued board compensation due to Mr. Eppel into 102,041 shares of series A preferred stock.

During the year ended December 31, 2011, the Company borrowed $195,000 from Mr. Sherali and issued a non-interest bearing note. Also during the year ended December 31, 2011, the Company converted $127,000 of the note and issued 13,005,556 common shares and converted $37,000 of the note and issued 462,500 preferred shares to Mr. Sherali. During the six months ended June 30, 2012, the Company borrowed an additional $56,500 from Mr. Sherali and converted the $87,500 balance of the note and issued 2,592,898 Series A Preferred shares to Mr. Sherali. During the six months ended June 30, 2012, Mr. Sherali purchased 2,113,409 shares of the Company’s series A preferred stock for $66,000 and the Company converted $10,000 of accrued board compensation due to Mr. Sherali into 102,041 shares of Series A Preferred stock. Additionally, during the six months ended June 30, 2012, Mr. Sherali converted 32,420,942 shares of common stock owned by him into 1,621,047 shares of Series A Preferred.

Kayode Aladesuyi, the Company’s Chairman, Chief Executive Officer, and President, is the holder of an unsecured non-interest bearing note of the Company. At December 31, 2010, the outstanding balance on the note was $18,456. During the year ended December 31, 2011, the Company borrowed $10,619 from and repaid $29,075 to Mr. Aladesuyi. The balance of the note at December 31, 2011 is $0.

The Company issued 4,000,000 shares of its common stock to Mr. Aladesuyi for services during the years ended December 31, 2011 and converted $230,000 of accrued salaries due to Mr. Aladesuyi to 32,857,143 shares of common stock. During the six months ended June 30, 2012, the Company converted $10,000 of accrued board compensation due to Mr. Aladesuyi into 102,041 shares of Series A Preferred.

On October 5, 2011, the Company entered into a license with BBGN&K LLC (“BBGN&K”) for the rights to use certain patented technologies of which BBGN&K owns the patents. Mr. Aladesuyi is the managing member of BBGN&K. The license agreement calls for royalty payments beginning in 2012 of 8% of EarthSearch’s revenues to be paid quarterly. Also on October 5, 2011, the Company's Board of Directors approved the issuance of 1,428,572 shares of Series A Preferred  to Mr. Aladesuyi as payment of $200,000 initial license fee.

On November 2, 2011, the Company issued 4,285,714 shares of its preferred stock to Mr. Aladesuyi in conversion of $600,000 of accrued compensation due him.

On November 2, 2011, the Company issued 1,375,000 shares of its preferred stock to Mr. Russo in conversion of $125,000 of accrued compensation due him.

Andrea Sousa, Comptroller of the Company, is the wife of Kayode Aladesuyi. On January 12, 2012 the Company issued 7,500,000 shares of the Company’s common stock in exchange of salaries payable to Ms. Rocha of $22,500.

During the six months ended June 30, 2012, Mr. Aladesuyi, his five children, and BBGN&K converted a combined 46,027,281 shares of common stock owned by them into 2,301,363 shares of Series A Preferred stock.

During the six months ended June 30, 2012, Ms. Sousa converted 1,119,436 shares of common stock owned by her into 55,971 shares of Series A Preferred

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2. Loans Payable

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

NOTE 2 - Loans Payable

Loans payable at June 30, 2012 and December 31, 2011 consist of the following:

	June 30, 2012		December 31, 2011
Loans Payable, Current:
Unsecured $450,000 note payable to Azfar Haque, which bears interest at 9% per annum and was originally due June 15, 2008. At December 31, 2011 the note was in default.  On September 19, 2011, $25,000 of this note was transferred to an investor and was converted to common stock.  During the year ended December 31, 2011, $227,250 of this note was converted to common stock.  During the six months ended June 30, 2012, the remaining $372,655 plus $3,595 of additional accrued interest was purchased by multiple investors.  Accrued interest is equal to $ nil and $174,905 respectively.	$	–	$	372,655
Unsecured $80,000 note payable to Rainmaker Global, Inc. which bears interest at 30% per annum and was originally due December 31, 2009. At December 31, 2011 the note was in default.  During the six months ended June 30, 2012, $102,000 of this note was purchased by Ironridge Global IV, Ltd.  Pursuant to the purchase agreement, Rainmaker Global agreed to settle the entire amount due for the purchase price of $102,000, creating a gain on the settlement of $38,125. Accrued interest is equal to $nil and $54,125 respectively.		–		134,125
$20,000 convertible note payable to Leonard Marella, which bears interest at 10% per annum and was originally due October 1, 2009.  At December 31, 2011 the note was in default.  During the six months ended June 30, 2012, $24,862 of this note was purchased by Ironridge Global IV, Ltd.  Pursuant to the purchase agreement, Mr. Marella agreed to settle the entire amount due for the purchase price of $24,862, creating a gain on the settlement of $521. Accrued interest is equal to $nil and $4,883, respectively.		–		24,883

	June 30, 2012		December 31, 2011
Unsecured non-interest bearing note payable, due on demand, to Syed Ahmed.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd.		–		7,000
Unsecured non-interest bearing note payable, due on demand, to Alina Farooq.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd.		–		3,500
Unsecured non-interest bearing note payable, due on demand, to William Johnson.  The note holder loaned the Company an additional $5,100 and the entire note of $12,000 was converted to preferred stock during the six months ended June 30, 2012.		–		6,900
Unsecured non-interest bearing note payable, due on demand, to Robert Saidel.  The note holder loaned the Company  an additional $1,976 during the six months ended June 30, 2012.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd.		–		23,964
Unsecured non-interest bearing note payable, due on demand, to Michael Johnstone.  The note was repaid during the six months ended June 30, 2012.		–		1,100
Unsecured non-interest bearing note payable, due on demand, to Michael Carbone, Sr.   The note was converted to preferred stock during the six months ended June 30, 2012.		–		5,000
Unsecured $25,000 convertible note payable to Mindshare Holdings, Inc., which bears interest at 8% per annum and due January 5, 2012.  The note includes a redemption premium of $7,500 and is discounted for its unamortized beneficial conversion feature of $289 at December 31, 2011.  During the six months ended June 30, 2012, the note balance of $25,000, plus $1,000 of accrued interest, was converted to common stock.		–		32,133
Unsecured $25,000 convertible note payable to Southridge Partners II LP, which bears interest at 8% per annum and due January 5, 2012.  The note includes a redemption premium of $7,500 and is discounted for its unamortized beneficial conversion feature of $367 at December 31, 2011.  During the six months ended June 30, 2012, the note balance of $25,000, plus $1,249 of accrued interest, was converted to common stock.		–		32,211
Unsecured $17,500 convertible note payable to Southridge Partners II LP, which bears interest at 5% per annum and due February 1, 2012.  The note includes a redemption premium of $2,625 and is discounted for its unamortized beneficial conversion feature of $1,885 at December 31, 2011.  During the six months ended June 30, 2012, the note balance of $17,500, plus $439 of accrued interest, was converted to common stock.		–		18,240
Unsecured $9,000 convertible note payable to Southridge Partners II LP, which bears interest at 5% per annum and due June 30, 2012.  This note is currently in default.  The note includes a redemption premium of $1,350 and is discounted for its unamortized beneficial conversion feature of $nil and $7,337 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $265 and $nil, respectively.		10,615		3,013
Unsecured $16,290 convertible note payable to First Trust Management, which bears interest at 7% per annum and due September 25, 2012.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd. The note is discounted for its unamortized beneficial conversion feature of $nil and $6,247 as of June 30, 2012 and December 31, 2011, respectively.		–		10,043

	June 30, 2012		December 31, 2011
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On November 2, 2011, the Company received $32,500, which is due May 28, 2012.  The note is currently in default.  The draw on the note is discounted for its unamortized beneficial conversion feature of $nil and $12,147 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $1,716 and $nil, respectively.		34,216		20,353
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On November 18, 2011, the Company received $11,950, which is due May 28, 2012. The note is currently is default. The draw on the note is discounted for its unamortized beneficial conversion feature of $nil and $4,738 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $589 and $nil, respectively.		12,539		7,212
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On December 5, 2011, the Company received $7,960, which is due June 5, 2012. The note is currently in default. The draw on the note is discounted for its unamortized beneficial conversion feature of $nil and $3,816 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $363 and $nil, respectively.		8,323		4,144
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On December 15, 2011, the Company received $9,950, which is due June 15, 2012. The note is currently in default. The draw on the note is discounted for its unamortized beneficial conversion feature of $nil and $4,544 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $431 and $nil, respectively.		10,381		5,406
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On January 2, 2012, the Company received $164,150, which is due September 30, 2012.  $2,000 was paid on the note during the six months ended June 30, 2012.  During the six months ended June 30, 2012, $40,000 of the note was converted to series A preferred stock and $62,450 was converted to common stock. The draw on the note is discounted for its unamortized beneficial conversion feature of $22,556 .  Accrued interest is equal to $4,016.		41,160		–
Unsecured $40,000 convertible note payable to Southridge Partners II LP, which bears interest at 5% per annum and due June 30, 2012.  The note is currently in default. The note includes a redemption premium of $8,000 and is discounted for its unamortized beneficial conversion feature of $nil at June 30, 2012.  Accrued interest is equal to $981.		48,981		–
Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and due October 5, 2012.  The note is discounted for its unamortized beneficial conversion feature of $7,615 at June 30, 2012.  Accrued interest is equal to $1,275.		26,160		–
Unsecured $60,000 note payable to Street Capital, Inc., which bears no interest and due July 5, 2012.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd.  The Company issued 600,000 shares of common stock to Street capital as an incentive to provide the loan.  The note is discounted for its unamortized fair value of the common stock of $nil at June 30, 2012.		–		–

	June 30, 2012		December 31, 2011
Unsecured $10,000 convertible note payable to Southridge Partners II LP, which bears interest at 5% per annum and due June 30, 2012. The note is currently in default. The note includes a redemption premium of $2,000 and is discounted for its unamortized beneficial conversion feature of $nil at June 30, 2012.  Accrued interest is equal to $226.		12,226		–
Unsecured $37,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and due November 16 2012.  The note is discounted for its unamortized beneficial conversion feature of $16,997 at June 30, 2012.  Accrued interest is equal to $1,126.		21,629		–
Unsecured $30,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due October 17 2012.  The note is discounted for its unamortized beneficial conversion feature of $13,457 at June 30, 2012.  Accrued interest is equal to $1,322.		17,865		–
On February 17, 2012, Panache Capital, LLC entered into an agreement to purchase $50,000 of the note payable to Azfar Haque.  The Company exchange the original note to Mr. Haque with a new note to Pananche which bears interest at 10% per annum and due February 17, 2013.  During the six months ended June 30, 2012, $44,348 of the note was converted to common stock.  The note is discounted for its unamortized beneficial conversion feature of $4,519 at June 30, 2012.  Accrued interest is equal to $474.		1,607		–
In February 2012, Magna Group, LLC entered into two agreements to purchase a total of $275,000 of the note payable to Azfar Haque.  The Company exchanged the original note to Mr. Haque with new notes to Magna which bear interest at 12% per annum and due February 24, 2013.  During the six months ended June 30, 2012, the entire note balance, including accrued interest of $600, totaling $275,600 was converted to common stock.		–		–
Unsecured $16,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due May 3, 2013.  The note is discounted for its unamortized beneficial conversion feature of $13,457 at June 30, 2012.  Accrued interest is equal to $305.		2,848
Unsecured $10,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due January 3, 2013.  The note is discounted for its unamortized beneficial conversion feature of $8,162 at June 30, 2012.  Accrued interest is equal to $148.		1,986
Unsecured $3,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due January 21, 2013.  The note is discounted for its unamortized beneficial conversion feature of $2,509 at June 30, 2012.  Accrued interest is equal to $39.		530
Unsecured $12,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due February 5, 2013.  The note is discounted for its unamortized beneficial conversion feature of $10,775 at June 30, 2012.  Accrued interest is equal to $99.		1,324

	June 30, 2012		December 31, 2011
Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and due February 25, 2012.  The note is discounted for its unamortized beneficial conversion feature of $20,674 at June 30, 2012.  Accrued interest is equal to $271.		12,097		–
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On May 10, 2012, the Company received $3,200, which is due September 30, 2012. The draw on the note is discounted for its unamortized beneficial conversion feature of $910 at June 30, 2012.  Accrued interest is equal to $22.		2,312		–
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On June 7, 2012, the Company received $2,500, which is due September 30, 2012. The draw on the note is discounted for its unamortized beneficial conversion feature of $889 at June 30, 2012.  Accrued interest is equal to $8.		1,619		–
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On June 12, 2012, the Company received $9,500, which is due September 30, 2012. The draw on the note is discounted for its unamortized beneficial conversion feature of $3,531 at June 30, 2012.  Accrued interest is equal to $23.		5,992		–
Subtotal, Loans Payable, Current		274,410		711,882
Loans Payable, Non-current:
Unsecured $70,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due October 24 2013.  The note is discounted for its unamortized beneficial conversion feature of $55,377 at June 30, 2012.  Accrued interest is equal to $2,922.		17,545		–
Total Loans Payable	$	291,955	$	711,882

The Company accrued interest expense of $32,391 and $95,583 for the six months ended June 30, 2012 and the year ended December 31, 2011, respectively, on the above loans.  Accrued interest is included in the loan balances.

The Company borrowed $486,926 and $244,755 during the six months ended June 30, 2012 and the year ended December 31, 2011, respectively. The Company made payments of $10,100 and $2,500 on the loans during the six months ended June 30, 2012 and the year ended December 31, 2011. During the six months ended June 30, 2012, the Company converted $503,836 of loans payable into 334,850,199 shares of the Company’s common stock and $57,000 of loans payable into 1,000,000 shares of the Company’s Series A Preferred. During the year ended December 31, 2011, the Company converted $394,619 of loans payable into 14,748,313 shares of the Company’s common stock.

On November 2, 2011, the Company entered into an unsecured convertible promissory note agreement with Bulldog Insurance. The notes issued under the agreement bear interest at 8% per annum, are generally due 6 months after issuance, and are convertible at a 35% discount to the market price of the average closing prices of the previous 3 closing days prior to the conversion date. $164,150 was drawn against the note on January 2, 2012 and $2,000 was repaid during the six months ended June 30, 2012. The draw is due September 30, 2012 and is discounted by the value of its beneficial conversion feature of $66,686, of which, $44,130 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $4,016 has been accrued for the six months ended June 30, 2012. During the six months ended June 30, 2012, $62,450 of the note has been converted into 36,248,424 shares of the Company’s common stock and $40,000 of the note has been converted into 800,000 shares of Series A Preferred. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $119,279.

On January 3, 2012, the Company issued a $40,000 unsecured convertible promissory note to Southridge Partners II LP. The note bears interest at 5% per annum, is due June 30, 2012, and is convertible at a 50% discount to the average of the two low closing bid prices during the five day period prior to the conversion date. The note includes a redemption premium of $8,000 which is being amortized as interest expense over the term of the loan. The note is discounted by the value of its beneficial conversion feature of $38,261, which has been fully accreted as interest expense during the six months ended June 30, 2012. Interest of $981 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $48,981.

On January 3, 2012, the Company issued a $32,500 unsecured convertible promissory note to Asher Enterprises, Inc. The note bears interest at 8% per annum, is due October 5, 2012, and is convertible at a 40% discount to the average of the three low trading prices during the ten day period prior to the conversion date. The note is discounted by the value of its beneficial conversion feature of $21,667, of which, $14,052 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $1,275 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $26,160.

On January 5, 2012, the Company issued a $60,000 unsecured convertible promissory note to Street Capital, Inc. for services to be rendered. The note bears no interest and is due July 5, 2012. The Company issued 600,000 shares of common stock to Street capital as an incentive to provide the loan. The note is discounted for the fair value of the common stock of $2,160, which has been fully accreted as interest expense during the six months ended June 30, 2012. During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd. (see Note 4).

On January 17, 2012, the Company issued a $10,000 unsecured convertible promissory note to Southridge Partners II LP. The note bears interest at 5% per annum, is due June 30, 2012, and is convertible at a 50% discount to the average of the two low closing bid prices during the five day period prior to the conversion date. The note includes a redemption premium of $2,000 which is being amortized as interest expense over the term of the loan. The note is discounted by the value of its beneficial conversion feature of $9,167, which has been fully accreted as interest expense during the six months ended June 30, 2012. Interest of $226 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $12,226.

On February 13, 2012, Azfar Haque transferred $10,000 of the $450,000 note payable to him to SGI Group, LLC per a Securities Transfer Agreement between the two parties. The Company exchanged the original note to Mr. Haque with a new note to SGI Capital, LLC which bears interest at 10% per annum and due February 13, 2013. The note is discounted by the value of its beneficial conversion feature of $5,455, all of which has been accreted as interest expense for the six months ended June 30, 2012. On February 16, 2012, the entire note of $10,000 was converted to 9,103,332 shares of common stock.

On February 14, 2012, the Company issued a $37,500 unsecured convertible promissory note to Asher Enterprises, Inc. The note bears interest at 8% per annum, is due November 16, 2012, and is convertible at a 50% discount to the average of the three low trading prices during the ten day period prior to the conversion date. The note is discounted by the value of its beneficial conversion feature of $33,750, of which, $16,753 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $1,126 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $21,629.

On February 16, 2012, Azfar Haque transferred $41,250 of the $450,000 note payable to him to Southridge Partners II LP per a Securities Transfer Agreement between the two parties. The Company exchanged the original note to Mr. Haque with a new note to Southridge Partners II LP which bears interest at 10% per annum and due February 16, 2013. The note is discounted by the value of its beneficial conversion feature of $19,286, which has been fully accreted as interest expense for the six months ended June 30, 2012. During the six months ended June 30, 2012, the entire note of $41,250 was converted to 25,662,101 shares of common stock.

On February 17, 2012, the Company issued a $30,000 unsecured convertible promissory note to Hanover Holdings I, LLC. The note bears interest at 12% per annum, is due October 17, 2012, and is convertible at a 55% discount to the average of the three low trading prices during the three day period prior to the conversion date. The note is discounted by the value of its beneficial conversion feature of $29,999, of which, $16,542 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $1.322 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $17,865.

On February 17, 2012, Azfar Haque transferred $50,000 of the $450,000 note payable to him to Panache Capital, LLC per a Securities Transfer Agreement between the two parties. The Company exchanged the original note to Mr. Haque with a new note to Panache Capital, LLC which bears interest at 10% per annum and due February 17, 2013. The note is discounted by the value of its beneficial conversion feature of $26,667, of which, $22,148 has been accreted as interest expense for the six months ended June 30, 2012. During the six months ended June 30, 2012, $44,348 of the note was converted to 39,342,949 shares of the Company’s common stock. Interest of $474 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $1,607.

On February 17, 2012, Azfar Haque transferred $75,000 of the $450,000 note payable to him to Magna Group, LLC per a Securities Transfer Agreement between the two parties. The Company exchanged the original note to Mr. Haque with a new note to Magna Group, LLC which bears interest at 12% per annum and due February 17, 2013. The note is discounted by the value of its beneficial conversion feature of $61,184, which has been fully accreted as interest expense for the six months ended June 30, 2012. During the six months ended June 30, 2012, the entire note of $75,000 was converted to 23,241,401 shares of common stock.

On February 24, 2012, Azfar Haque transferred $50,000 of the $450,000 note payable to him to Magna Group, LLC per a Securities Transfer Agreement between the two parties. The Company exchanged the original note to Mr. Haque with a new note Magna Group, LLC which bears interest at 12% per annum and due February 24, 2013. The note is discounted by the value of its beneficial conversion feature of $150,000, which has been fully accreted as interest expense during the six months ended June 30, 2012. During the six months ended June 30, 2012, the entire note balance of $60,600, including accrued interest of $600, was converted to 147,537,153 shares of the Company’s common stock.

On February 24, 2012, the Company issued a $70,000 unsecured convertible promissory note to Hanover Holdings I, LLC. The note bears interest at 12% per annum, is due October 24, 2013, and is convertible at a 55% discount to the average of the three low trading prices during the three day period prior to the conversion date. The note is discounted by the value of its beneficial conversion feature of $69,999, of which, $14,622 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $2,922 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $17,545.

On November 2, 2011, the Company entered into an unsecured convertible promissory note agreement with Bulldog Insurance. The notes issued pursuant to the agreement bear interest at 8% per annum, are generally due 6 months after issuance, and are convertible at a 35% discount to the market price of the average closing prices of the previous 3 closing days prior to the conversion date. $2,500 was drawn against the note on April 2, 2012 and was fully repaid during the six months ended June 30, 2012. The draw is due September 30, 2012 and is discounted by the value of its beneficial conversion feature of $972, which has been fully accreted as interest expense for the six months ended June 30, 2012.

On May 3 2012, the Company issued a $16,000 unsecured convertible promissory note to Hanover Holdings I, LLC. The note bears interest at 12% per annum, is due May 3, 2013, and is convertible at a 55% discount to the average of the three low trading prices during the three day period prior to the conversion date. The note is discounted by the value of its beneficial conversion feature of $15,999, of which, $2,542 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $305 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $2,848.

On November 2, 2011, the Company entered into an unsecured convertible promissory note agreement with Bulldog Insurance. The notes issued pursuant to the agreement bear interest at 8% per annum, are generally due 6 months after issuance, and are convertible at a 35% discount to the market price of the average closing prices of the previous 3 closing days prior to the conversion date. $3,200 was drawn against the note on May 10, 2012. The draw is due September 30, 2012 and is discounted by the value of its beneficial conversion feature of $1,414, of which, $504 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $22 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $2,312.

On November 2, 2011, the Company entered into an unsecured convertible promissory note agreement with Bulldog Insurance. The notes issued pursuant to the agreement bear interest at 8% per annum, are generally due 6 months after issuance, and are convertible at a 35% discount to the market price of the average closing prices of the previous 3 closing days prior to the conversion date. $3,000 was drawn against the note on May 11, 2012 and was fully repaid during the six months ended June 30, 2012. The draw is due September 30, 2012 and is discounted by the value of its beneficial conversion feature of $1,275, which has been fully accreted as interest expense for the six months ended June 30, 2012.

On May 16, 2012, the Company issued a $10,000 unsecured convertible promissory note to Hanover Holdings I, LLC. The note bears interest at 12% per annum, is due January 16, 2013, and is convertible at a 55% discount to the average of the three low trading prices during the three day period prior to the conversion date. The note is discounted by the value of its beneficial conversion feature of $9,999, of which, $1,837 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $148 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $1,986.

On May 21, 2012, the Company issued a $3,000 unsecured convertible promissory note to Hanover Holdings I, LLC. The note bears interest at 12% per annum, is due January 21, 2013, and is convertible at a 55% discount to the average of the three low trading prices during the three day period prior to the conversion date. The note is discounted by the value of its beneficial conversion feature of $2,999, of which, $490 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $39 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $530.

On November 2, 2011, the Company entered into an unsecured convertible promissory note agreement with Bulldog Insurance. The notes issued pursuant to the agreement bear interest at 8% per annum, are generally due 6 months after issuance, and are convertible at a 35% discount to the market price of the average closing prices of the previous 3 closing days prior to the conversion date. $1,500 was drawn against the note on May 22, 2012 and was fully repaid during the six months ended June 30, 2012. The draw is due September 30, 2012 and is discounted by the value of its beneficial conversion feature of $611, which has been fully accreted as interest expense for the six months ended June 30, 2012.

On May 23 2012, the Company issued a $32,500 unsecured convertible promissory note to Asher Enterprises, Inc. The note bears interest at 8% per annum, is due February 25, 2013, and is convertible at a 42% discount to the average of the three low trading prices during the ten day period prior to the conversion date. The note is discounted by the value of its beneficial conversion feature of $23,947, of which, $3,273 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $271 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $12,097.

On June 5, 2012, the Company issued a $12,000 unsecured convertible promissory note to Hanover Holdings I, LLC. The note bears interest at 12% per annum, is due February 5, 2013, and is convertible at a 55% discount to the average of the three low trading prices during the three day period prior to the conversion date. The note is discounted by the value of its beneficial conversion feature of $11,999, of which, $1,224 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $99 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $1,324.

On November 2, 2011, the Company entered into an unsecured convertible promissory note agreement with Bulldog Insurance. The notes issued pursuant to the agreement bear interest at 8% per annum, are generally due 6 months after issuance, and are convertible at a 35% discount to the market price of the average closing prices of the previous 3 closing days prior to the conversion date. $2,500 was drawn against the note on June 7, 2012. The draw is due September 30, 2012 and is discounted by the value of its beneficial conversion feature of $1,111, of which, $222 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $8 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $1,619.

On November 2, 2011, the Company entered into an unsecured convertible promissory note agreement with Bulldog Insurance. The notes issued pursuant to the agreement bear interest at 8% per annum, are generally due 6 months after issuance, and are convertible at a 35% discount to the market price of the average closing prices of the previous 3 closing days prior to the conversion date. $9,500 was drawn against the note on June 12, 2012. The draw is due September 30, 2012 and is discounted by the value of its beneficial conversion feature of $4,222, of which, $691 has been accreted as interest expense for the six months ended June 30, 2012. Interest of $23 has been accrued for the six months ended June 30, 2012. The outstanding balance of the loan, net of discounts, at June 30, 2012 is $5,992.

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Consolidated Balance Sheets (USD $)	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash	$ 37,363	$ 53,519
Accounts receivable, net	710,407	273,031
Inventory	139,334	33,523
Prepaid license fees	50,000	50,000
Prepaid expenses	1,000	3,076
Total current assets	938,104	413,149
Property and equipment, net	19,155	22,814
Other assets
Capitalized research and development costs, net	0	9,273
Intangible assets, net	663,000	739,500
Goodwill	742,107	742,107
Prepaid license fees	112,500	137,500
Escrow deposits	3,855	3,462
Security deposits	20,000	4,521
Total other assets	1,541,462	1,636,363
Total assets	2,498,721	2,072,326
LIABILITIES AND STOCKHOLDERS' DEFICIT
Bank overdraft	4,794	16,675
Loans payable, current	274,410	711,882
Loans payable - related party, current	607,187	630,298
Accounts payable and accrued expenses	520,257	721,010
Accrued payroll and related liabilities	1,732,036	1,717,582
Total current liabilities	3,138,684	3,797,447
Other liabilities
Loans payable, non-current	17,545	0
Total liabilities	3,156,229	3,797,447
Contingent acquisition liabilities	1,104,973	1,104,973
Amounts payable in common stock	709,122	0
Derivative liability	381,835	0
Stockholders' deficit
Preferred stock, $0.001 par value, 50,000,000 and 20,000,000 shares authorized Series A preferred stock, 23,183,595 and 10,513,813 shares issued and outstanding at June 30, 3012 and December 31, 2011, respectively	23,184	21,028
Series B preferred stock, 1,500 and nil shares issued and outstanding at June 30, 3012 and December 31, 2011, respectively	2	0
Common stock, $0.001 par value, 2,000,000,000 and 480,000,000 shares authorized, 661,484,567 and 289,895,481 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	661,484	289,895
Additional paid-in capital	13,429,367	10,180,384
Preferred stock subscriptions receivable	(1,384,998)	0
Accumulated deficit	(15,273,499)	(13,062,595)
Total East Coast Diversified stockholders' deficit	(2,544,460)	(2,571,288)
Noncontrolling interest	(308,978)	(258,806)
Total stockholders' deficit	(2,853,438)	(2,830,094)
Total liabilities and stockholders' deficit	$ 2,498,721	$ 2,072,326

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Consolidated Statements of Cash Flows (Parenthetical)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Statement of Cash Flows [Abstract]
Issuance of 334,850,199 and 7,000,000 shares of common stock in conversion of loans payable	334,850,199	7,000,000
Issuance of 4,055,556 shares of common stock in conversion of loans payable - related party, resepctively		4,055,556
Issuance of 1,000,000 shares of series A preferred stock in conversion of loans payable	1,000,000
Issuance of 2,592,898 shares of series A preferred stock in conversion of loans payable - related party	2,592,898
Issuance of 109,500,000 shares of common stock in settlement of loans and accounts payable converted to Amounts payable in common stock	109,500,000
Issuance of 4,324,515 shares of Series A preferred stock to related parties in conversion of 86,490,344 shares of common stock	4,324,515
Issuance of 4,324,515 shares of Series A preferred stock to related parties in conversion of 86,490,344 shares of common stock	86,490,344
Issuance of 372,000 shares of Series A preferred stock to third parties in conversion of 7,440,000 shares of common stock	372,000
Issuance of 372,000 shares of Series A preferred stock to third parties in conversion of 7,440,000 shares of common stock	7,440,000
Issuance of 1,500,000 shares of series B preferred stock under stock subscription	1,500,000
Issuance of 357,143 shares of common stock in conversion of accounts payable	357,143
Issuance of 7,500,000 and 32,857,143 shares of common stock in conversion of accrued salaries	7,500,000	32,857,143
Issuance of 408,164 shares of series A preferred stock in conversion of accrued salaries	408,164

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3. Related Parties (Details Narrative) (USD $)	6 Months Ended	12 Months Ended	6 Months Ended				6 Months Ended			6 Months Ended	12 Months Ended		6 Months Ended		12 Months Ended		6 Months Ended	12 Months Ended	6 Months Ended				12 Months Ended		6 Months Ended					12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 SeriesAPreferredStockMember	Jun. 30, 2012 Edward Eppel [Member]	Dec. 31, 2011 Edward Eppel [Member]	Dec. 31, 2010 Edward Eppel [Member]	Jun. 30, 2012 Edward Eppel [Member] SeriesAPreferredStockMember	Jun. 30, 2012 Anis Sherali [Member]	Dec. 31, 2011 Anis Sherali [Member]	Jun. 30, 2012 Anis Sherali [Member] CommonStockMember	Dec. 31, 2011 Anis Sherali [Member] CommonStockMember	Dec. 31, 2011 Anis Sherali [Member] PreferredStockMember	Jun. 30, 2012 Anis Sherali [Member] SeriesAPreferredStockMember	Jun. 30, 2012 Frank Russo [Member]	Dec. 31, 2011 Frank Russo [Member]	Dec. 31, 2010 Frank Russo [Member]	Jun. 30, 2012 Frank Russo [Member] CommonStockMember	Dec. 31, 2011 Frank Russo [Member] PreferredStockMember	Jun. 30, 2012 Frank Russo [Member] SeriesAPreferredStockMember	Jun. 30, 2012 Kayode Aladesuyi [Member]	Dec. 31, 2011 Kayode Aladesuyi [Member]	Dec. 31, 2010 Kayode Aladesuyi [Member]	Dec. 31, 2011 Kayode Aladesuyi [Member] CommonStockMember	Dec. 31, 2011 Kayode Aladesuyi [Member] PreferredStockMember	Jun. 30, 2012 Kayode Aladesuyi [Member] SeriesAPreferredStockMember	Jun. 30, 2012 KayodeAladesuyiAndBbgnAndkMember CommonStockMember	Jun. 30, 2012 KayodeAladesuyiAndBbgnAndkMember SeriesAPreferredStockMember	Jun. 30, 2012 SousaMember CommonStockMember	Jun. 30, 2012 SousaMember SeriesAPreferredStockMember	Dec. 31, 2012 AndreaSousaMember CommonStockMember	Dec. 31, 2011 RochaMember
Accrued interest on note payable				$ 23,652	$ 15,763
Additional loan provided to company								56,500
Note payable balance converted to preferred stock	23,184	21,028						87,500
Repayment of note payable														0	12,027					29,075
Accrued board compensation				10,000				10,000			127,000	37,000	87,500	10,000									230,000		10,000
Amount due to related party						173,256										422,006						18,456
Accrued compensation converted into shares			102,041				102,041				13,005,556	462,500							102,041				32,857,143		102,041
Conversion of shares										32,420,942			1,621,047				6,922,685		346,134							46,027,281	2,301,363	1,119,436	55,971
Amount borrowed				0	299			56,500	195,000												10,619
Accrued interest included in loan balance	7,889	15,763
Purchase of shares								2,113,409
Amount paid for purchase of shares			66,000
Stock issued as compensation for services																		1,375,000					4,000,000	4,285,714						7,500,000
Salary payable																					$ 600,000										$ 22,500

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5. Stockholders' Deficit (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2012
Options granted	0
PreferredStockIssuedforCashMember | SereisAMember
Preferred stock issued	3,364,718
Preferred stock issued, value	$ 113,400
Preferred stock issued, pershare value	$ 0.0337
PreferredStockIssuedforSubscriptionsMember
Subscription received in cash	115,002
PreferredStockIssuedforSubscriptionsMember | SereisBMember
Preferred stock issued	1,500
Preferred stock issued, value	1,500,000
Preferred stock issued, pershare value	$ 1,000
PreferredStockIssuedinConversionofDebtMember | SereisAMember
Preferred stock issued	2,592,898
Preferred stock issued, value	87,500
CommonStockIssuedforCashMember
Common stock issued	250,000
Common stock issued, value	1,000
Common stock issued, pershare value	$ 0.004
CommonStockIssuedinConversionofDebtMember
Common stock issued	109,500,000
Common stock issued, market value	563,460
Amount of settelment	359,223
BoardOfDirectorsMember | PreferredStockIssuedforServicesMember
Preferred stock issued	408,164
Accrued compensation	40,000
UnrelatedPartyMember | PreferredStockIssuedforServicesMember
Fair value of the services rendered	45,000
UnrelatedPartyMember | PreferredStockIssuedforServicesMember | SereisAMember
Preferred stock issued	607,487
RelatedPartiesMember | PreferredStockIssuedinConversionofCommonStockMember
Common stock converted and rerturned	8,64,90,344
RelatedPartiesMember | PreferredStockIssuedinConversionofCommonStockMember | SereisAMember
Preferred stock issued	4,324,515
UnrelatedPartiesMember | PreferredStockIssuedinConversionofCommonStockMember
Common stock converted and rerturned	74,40,000
UnrelatedPartiesMember | PreferredStockIssuedinConversionofCommonStockMember | SereisAMember
Preferred stock issued	372,000
UnrelatedPartiesMember | CommonStockIssuedinConversionofDebtMember
Common stock issued	334,850,199
Common stock issued, value	503,836
UnrelatedPartiesMember | CommonStockIssuedforServicesMember
Common stock issued	12,819,231
Common stock issued, value	80,205
Common stock issued, pershare value	$ 0.006
Unissued common shares	230,000
RochaMember | CommonStockIssuedforServicesMember
Common stock issued	7,500,000
Common stock issued, pershare value	$ 0.007
Accrued salaries	$ 22,500

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1. Nature of Business, Presentation, and Going Concern

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 1 - Nature of Business, Presentation, and Going Concern

Nature of Operations

The Company has created an integration of Radio Frequency Identification Technology (“RFID”) and GPS technology and is an international provider of supply chain management solutions offering real-time visibility in the supply chain with integrated RFID/GPS and other telemetry products.  These solutions help businesses worldwide to increase asset management, provide safety and security, increase productivity, and deliver real-time visibility of the supply chain through automation.

The Company’s development of GPS devices embedded with RFID modules represents its core technology and products. The Company has licensed various patents relating to the technology used in the Company’s products and has commenced sales and commercialization of the technology which the Company expects will result in revenue that will allow the Company to sustain its current operation and get to a profitable status.

The Company launched sales operations in 2008 but subsequently withdrew sales and commercial resources from the market mid-2008 and 2009 due to the negative economic and market conditions.  During that time, the Company refocused its efforts on the redesign and integration of RFID and GPS technologies into its products.   Commercial sales were re-established in 2010.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information.  Accordingly, they do not include all of the information and footnotes required in annual financial statements. In the opinion of management, the unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position and results of operations and cash flows. All intercompany transactions and accounts have been eliminated in consolidation. The results of operations presented are not necessarily indicative of the results to be expected for any other interim period or for the entire year.

These unaudited consolidated financial statements should be read in conjunction with our 2011 annual consolidated financial statements included in our annual report on Form 10-K/A, filed with the SEC on May 4, 2012.

Going Concern

The accompanying unaudited consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As reflected in the accompanying unaudited consolidated financial statements, the Company had an accumulated deficit of $15,273,499 at June 30, 2012, a net loss and net cash used in operations of $2,210,904 and $778,184, respectively, for the six months ended June 31, 2012.  These conditions raise substantial doubt about the Company’s ability to continue as a going concern.  

The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan, generate revenues, and continue to raise additional investment capital.  No assurance can be given that the Company will be successful in these efforts.

The unaudited consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.  Management believes that actions presently being taken to obtain additional funding and implement its strategic plans will afford the Company the opportunity to continue as a going concern.

Concentration of Credit Risk

The Company grants unsecured credit to commercial and governmental customers in the United States and abroad. Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. As of June 30, 2012, five customers account for 70% of the total accounts receivable compared to three customers accounting for 77% at December 31, 2011.

The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience, customer specific facts and economic conditions. Bad debt expense was $186,669 and $nil for the six months ended June 30, 2012 and 2011, respectively. At June 30, 2012 and December 31, 2011, the allowance for doubtful accounts was $186,669 and $nil, respectively.

Outstanding account balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure to its customers.

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Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Preferred stock par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock shares authorized	50,000,000	20,000,000
Preferred stock shares issued	23,183,595	10,513,813
Preferred stock shares outstanding	23,183,595	10,513,813
Series B Preferred stock shares authorized	1,500	1,500
Series B Preferred stock shares issued	0	0
Series B Preferred stock shares outstanding	0	0
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	2,000,000,000	480,000,000
Common stock shares issued	661,484,567	289,895,481
Common stock shares oustanding	661,484,567	289,895,481

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6. Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Future minimum lease payments

The Company leases its office facilities in Marietta, Georgia. The term of the lease is 66 months with escalating lease payments beginning at $2,163 per month. At June 30, 2012, future minimum lease payments under the lease are as follows:

2012	$	12,978
2013		26,735
2014		27,550
2015		28,366
2016		29,219
2017		15,054
	$	139,902

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 10, 2012
Document And Entity Information
Entity Registrant Name	EAST COAST DIVERSIFIED CORP
Entity Central Index Key	0001256540
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		984,772,657
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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1. Nature of Business, Presentation, and Going Concern (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Common stock, par value	$ 0.001		$ 0.001
Accumulated deficit	$ (15,273,499)		$ (13,062,595)
Net loss and net cash used in operations	778,184
Net loss and net cash used in operations	2,210,904
Bad debt expense	0	186,669
Allowance for doubtful accounts	186,669		0
SecuritiesPurchaseAgreementMember | DecemberEighteenTwoThousandNineMember
Common Stock Sold	6,997,150
Sales Value of common stock	$ 300,000
ShareExchangeAgreementMember | JanuaryFifteenTwoThousandTenMember
Shares issued in transaction	35,000,000
EarthSearchMember | AprilTwoTwoThousandTenMember
Acquisition of shares percentage	93.49%
EarthSearchMember | DecemberThirtyOneTwoThousandElevenMember
Acquisition of shares percentage	94.66%
Additional Acquisition of Shares	1,800,000
Non-Controlling shareholder	439,024
RoguePaperHoldersMember | OctoberTwentyThreeTwoThousandElevenMember
Acquisition of shares percentage	51.00%
Non-Controlling shareholder	2,500,000
Cash Redemption of shares Per share	$ 0.03
Series A Preferred shares [Member]
Cash Redemption of shares Per share	$ 0.60
Redemption terms	24 months
Five Customers [Member]
Sales Accountability of Customers	70.00%
Three Customers [Member]
Sales Accountability of Customers	77.00%

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Consolidated Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues:
Product sales	$ 313,744	$ 76,733	$ 461,676	$ 169,630
Consulting and development	119,110	116,000	409,210	167,500
User fees	18,346	13,281	30,808	32,962
Total revenues	451,200	206,014	901,694	370,092
Operating Expenses
Product sales	211,267	45,816	292,193	86,839
Consulting and development	67,637	59,366	114,737	59,366
User fees	21,843	13,150	38,178	21,869
Selling, general and administative expense	1,018,985	312,842	1,772,946	653,157
Total operating expenses	1,319,732	431,174	2,218,054	821,231
Loss from operations	(868,532)	(225,160)	(1,316,360)	(451,139)
Other income (expense)
Other income	25	0	1,412	0
Interest expense	(193,064)	(21,938)	(501,197)	(44,383)
Gain on settlement of debt	141,141	0	141,141	0
Loss on conversion of debt	(575,263)	0	(575,263)	0
Change in derivative liability	(10,809)	0	(10,809)	0
Total other income (expense)	(637,970)	(21,938)	(944,716)	(44,383)
Net loss	(1,506,502)	(247,098)	(2,261,076)	(495,522)
Net loss attributable to noncontrolling interests	35,583	6,509	50,172	17,323
Net loss attributable to East Coast Diversified Corporation	$ (1,470,919)	$ (240,589)	$ (2,210,904)	$ (478,199)
Net loss per share - basic and diluted	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average number of shares outsanding during the period - basic and diluted (in Shares)	626,749,544	163,872,692	507,380,566	157,651,502

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6. Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

NOTE 6 - Commitments and Contingencies

Operating Leases

The Company leases its office facilities in Marietta, Georgia. The term of the lease is 66 months with escalating lease payments beginning at $2,163 per month. At June 30, 2012, future minimum lease payments under the lease are as follows:

2012	$	12,978
2013		26,735
2014		27,550
2015		28,366
2016		29,219
2017		15,054
	$	139,902

Rent expense was $15,143 and $32,641 for the three months ended June 30, 2012 and 2011, respectively.

Acquisition Liabilities

Pursuant to the Share Exchange Agreement with Rogue Paper, Inc., commencing six months from the Execution Date, both the Company and the holders of the Preferred Shares shall have the option to redeem any portion of such holders Preferred Shares for cash, at a price of sixty cents ($0.60) per share, or $1,075,000.  Commencing twenty four (24) months from the Execution Date, holders of the remaining forty-nine percent (49%) of Rogue Paper Common Shares, have the option to have such shares redeemed by the Company for cash, at a price of $0.03 per share, or $29,973. 

License Agreement

On October 5, 2011, the Company entered into a license with BBGN&K LLC (“BBGN&K”) for the rights to use certain patented technologies of which BBGN&K owns the patents. The license agreement calls for royalty payments beginning in 2012 of 8% of EarthSearch’s revenues to be paid quarterly (see Note 3 – Related Parties).

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5. Stockholders' Deficit

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

NOTE 5 - Stockholders' Deficit

Authorized Capital

On September 17, 2010, the Board authorized the creation of a common stock incentive plan (the “2010 Stock Incentive Plan”) for our management and consultants. The Company registered twenty five million (25,000,000) shares of its common stock pursuant to the 2010 Stock Incentive Plan on Form S-8 filed with the Commission on September 27, 2010. As of June 30, 2012, no options have been granted under the plan.

On July 6, 2012 the Company filed a certificate of amendment to the Company’s Articles of Incorporation with the Secretary of State of Nevada to increase the Company’s authorized capital stock to 2,050,000,000 shares, par value $0.001 per share, including (i) 2,000,000,000 shares of common stock, par value $0.001 per share and (ii) 50,000,000 shares of preferred stock, par value $0.001 per share.

Preferred Stock Issued for Cash

During the six months ended June 30, 2012, the Company issued 3,364,718 shares of Series A Preferred in private placements for a total of $113,400 ($0.0337 per share average).

Preferred Stock Issued for Subscriptions

During the six months ended June 30, 2012, the Company issued 1,500 shares of series B preferred stock in a private placement for a total of $1,500,000 ($1,000 per share). During the six months ended June 30, 2012, $115,002 of the subscription receivable was received in cash.

Preferred Stock Issued in Conversion of Debt

During the six months ended June 30, 2012, the Company issued 2,592,898 shares of Series A Preferred in the conversion of $87,500 of notes payable to related parties (see Note 3 – Related Parties) and 1,000,000 shares of Series A Preferred in the conversion of $57,000 of notes payable to unrelated parties (see Note 2 – Loans Payable).

Preferred Stock Issued for Services

During the six months ended June 30, 2012, the Company converted $40,000 of accrued compensation to its board of directors to 408,164 shares of Series A Preferred (see Note 3 – Related Parties) and issued 607,487 shares of Series A Preferred stock to an unrelated party for services at the fair value of the services rendered of $45,000.

Preferred Stock Issued in Conversion of Common Stock

During the six months ended June 30, 2012, the Company issued 4,324,515 shares of Series A Preferred stock to related parties for the conversion and return of 86,490,344 shares of common stock and issued 372,000 shares of Series A Preferred stock to unrelated parties for the conversion and return of 7,440,000 shares of common stock.

Common Stock Issued for Cash

During the six months ended June 30, 2012, the Company issued 250,000 shares of common stock in private placements for a total of $1,000 ($0.004 per share).

Common Stock Issued in Conversion of Debt

During the six months ended June 30, 2012, the Company issued 334,850,199 shares of common stock in the conversion of $503,836 of notes payable to unrelated parties (see Note 2 – Loans Payable).

During the six months ended June 30, 2012, the Company issued 109,500,000 shares of common stock, with a market value of $563,460, to Ironridge in settlement of $359,223 of amounts payable in common stock (see Note 4 – Amounts Payable in Common Stock and Derivative Liability).

Common Stock Issued for Services

During the six months ended June 30, 2012, the Company issued 12,819,231 shares of common stock to unrelated parties for services of $80,205, or an average price of $0.006 per share based on the market value of the shares at the time of issuance.  These shares were issued under the 2010 Stock Incentive Plan (“2010 Plan”) dated September 17, 2010. As of June 30, 2012, 230,000 shares remain unissued under the 2010 Plan.

During the six months ended June 30, 2012, the Company converted $22,500 of accrued salaries due to Ms. Rocha to 7,500,000 shares of common stock, at a price of $0.007 per share based on the market value of the shares at the time of issuance (see Note 3 – Related Parties).

During the six months ended June 30, 2012, the Company issued 600,000 shares of common stock to an unrelated party for an incentive to enter into a loan agreement, at an average price of $0.0036 per share based on the market value of the shares at the time of issuance (see Note 2 – Loans Payable).

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4. Amounts Payable in Common Stock and Derivative Liability (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Notes to Financial Statements
Loans and accounts payable converted to Amounts payable in common stock			$ 1,068,345	$ 0
Loans converted to Amounts payable in common stock			241,978
Accounts payable converted to Amounts payable in common stock			826,367
Loss on conversion of debt	(575,263)	0	(575,263)	0
Issuance of 109,500,000 shares of common stock in settlement of loans and accounts payable converted to Amounts payable in common stock			563,460
Settlement of liability			359,223
Reduction of the derivative liability			$ 204,237

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2. Loans Payable (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Total Loan payable , Current	$ 274,410	$ 711,882
Total Loan payable	291,955	711,882
Azfar Haque [Member]
Notes payable		372,655
Rainmaker Global Inc [Member]
Notes payable		134,125
Leonard Marella [Member]
Notes payable		24,883
Syed Ahmed [Member]
Unsecured non-interest bearing note payable		7,000
Alina Farooq [Member]
Unsecured non-interest bearing note payable		3,500
William Johnson [Member]
Unsecured non-interest bearing note payable		6,900
Robert Saidel [Member]
Unsecured non-interest bearing note payable		23,964
Michael Johnstone [Member]
Unsecured non-interest bearing note payable		1,100
Michael Carbone Sr [Member]
Unsecured non-interest bearing note payable		5,000
Mindshare Holdings Inc [Member]
Unsecured Convertible Note Payable		32,133
Southridge Partners II LP 1 [Member]
Unsecured Convertible Note Payable		32,211
Southridge Partners II LP 2 [Member]
Unsecured Convertible Note Payable		18,240
Southridge Partners II LP 3 [Member]
Unsecured Convertible Note Payable	10,615	3,013
First Trust Management [Member]
Unsecured Convertible Note Payable		10,043
SouthridgePartnersIILP4 [Member]
Unsecured Convertible Note Payable	48,981
Asher Enterprises Inc [Member]
Unsecured Convertible Note Payable	26,160
Street Capital Inc [Member]
Unsecured non-interest bearing note payable
Southridge Partners II LP5 [Member]
Unsecured Convertible Note Payable	12,226
Asher Enterprises Inc 1 [Member]
Unsecured Convertible Note Payable	21,629
Hanover Holdings I LLC [Member]
Unsecured Convertible Note Payable	17,865
Azfar Haque 1 [Member]
Notes payable	1,607
Azfar Haque 2 [Member]
Notes payable
Hanover Holdings I LLC 1 [Member]
Unsecured Convertible Note Payable	2,848
Hanover Holdings I LLC2 [Member]
Unsecured Convertible Note Payable	1,986
Hanover Holdings I LLC3 [Member]
Unsecured Convertible Note Payable	530
Hanover Holdings I LLC4 [Member]
Unsecured Convertible Note Payable	1,324
Asher Enterprises Inc 2 [Member]
Unsecured Convertible Note Payable	12,097
Bulldog Insurance 5 [Member]
Unsecured Convertible Note Payable	2,312
Bulldog Insurance 6 [Member]
Unsecured Convertible Note Payable	1,619
Bulldog Insurance 7 [Member]
Unsecured Convertible Note Payable	5,992
Hanover Holdings I LLC 5 [Member]
Loans Payable, Non-current	17,545
NovemberTwoTwoThousandTwelveMember | BulldogInsuranceMember
Unsecured Convertible Note Payable	34,216	20,353
NovemberTwoTwoThousandTwelveMember | BulldogInsurance1Member
Unsecured Convertible Note Payable	12,539	7,212
NovemberTwoTwoThousandTwelveMember | BulldogInsurance2Member
Unsecured Convertible Note Payable	8,323	4,144
NovemberTwoTwoThousandTwelveMember | BulldogInsurance3Member
Unsecured Convertible Note Payable	10,381	5,406
NovemberTwoTwoThousandTwelveMember | BulldogInsurance4Member
Unsecured Convertible Note Payable	$ 41,160

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2. Loans Payable (Tables)

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Loans payable

Loans payable at June 30, 2012 and December 31, 2011 consist of the following:

	June 30,  2012		December 31,  2011
Loans Payable, Current:
Unsecured $450,000 note payable to Azfar Haque, which bears interest at 9% per annum and was originally due June 15, 2008. At December 31, 2011 the note was in default.  On September 19, 2011, $25,000 of this note was transferred to an investor and was converted to common stock.  During the year ended December 31, 2011, $227,250 of this note was converted to common stock.  During the six months ended June 30, 2012, the remaining $372,655 plus $3,595 of additional accrued interest was purchased by multiple investors.  Accrued interest is equal to $ nil and $174,905 respectively.	$	–	$	372,655
Unsecured $80,000 note payable to Rainmaker Global, Inc. which bears interest at 30% per annum and was originally due December 31, 2009. At December 31, 2011 the note was in default.  During the six months ended June 30, 2012, $102,000 of this note was purchased by Ironridge Global IV, Ltd.  Pursuant to the purchase agreement, Rainmaker Global agreed to settle the entire amount due for the purchase price of $102,000, creating a gain on the settlement of $38,125. Accrued interest is equal to $nil and $54,125 respectively.		–		134,125
$20,000 convertible note payable to Leonard Marella, which bears interest at 10% per annum and was originally due October 1, 2009.  At December 31, 2011 the note was in default.  During the six months ended June 30, 2012, $24,862 of this note was purchased by Ironridge Global IV, Ltd.  Pursuant to the purchase agreement, Mr. Marella agreed to settle the entire amount due for the purchase price of $24,862, creating a gain on the settlement of $521. Accrued interest is equal to $nil and $4,883, respectively.		–		24,883

	June 30,  2012		December 31,  2011
Unsecured non-interest bearing note payable, due on demand, to Syed Ahmed.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd.		–		7,000
Unsecured non-interest bearing note payable, due on demand, to Alina Farooq.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd.		–		3,500
Unsecured non-interest bearing note payable, due on demand, to William Johnson.  The note holder loaned the Company an additional $5,100 and the entire note of $12,000 was converted to preferred stock during the six months ended June 30, 2012.		–		6,900
Unsecured non-interest bearing note payable, due on demand, to Robert Saidel.  The note holder loaned the Company  an additional $1,976 during the six months ended June 30, 2012.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd.		–		23,964
Unsecured non-interest bearing note payable, due on demand, to Michael Johnstone.  The note was repaid during the six months ended June 30, 2012.		–		1,100
Unsecured non-interest bearing note payable, due on demand, to Michael Carbone, Sr.   The note was converted to preferred stock during the six months ended June 30, 2012.		–		5,000
Unsecured $25,000 convertible note payable to Mindshare Holdings, Inc., which bears interest at 8% per annum and due January 5, 2012.  The note includes a redemption premium of $7,500 and is discounted for its unamortized beneficial conversion feature of $289 at December 31, 2011.  During the six months ended June 30, 2012, the note balance of $25,000, plus $1,000 of accrued interest, was converted to common stock.		–		32,133
Unsecured $25,000 convertible note payable to Southridge Partners II LP, which bears interest at 8% per annum and due January 5, 2012.  The note includes a redemption premium of $7,500 and is discounted for its unamortized beneficial conversion feature of $367 at December 31, 2011.  During the six months ended June 30, 2012, the note balance of $25,000, plus $1,249 of accrued interest, was converted to common stock.		–		32,211
Unsecured $17,500 convertible note payable to Southridge Partners II LP, which bears interest at 5% per annum and due February 1, 2012.  The note includes a redemption premium of $2,625 and is discounted for its unamortized beneficial conversion feature of $1,885 at December 31, 2011.  During the six months ended June 30, 2012, the note balance of $17,500, plus $439 of accrued interest, was converted to common stock.		–		18,240
Unsecured $9,000 convertible note payable to Southridge Partners II LP, which bears interest at 5% per annum and due June 30, 2012.  This note is currently in default.  The note includes a redemption premium of $1,350 and is discounted for its unamortized beneficial conversion feature of $nil and $7,337 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $265 and $nil, respectively.		10,615		3,013
Unsecured $16,290 convertible note payable to First Trust Management, which bears interest at 7% per annum and due September 25, 2012.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd. The note is discounted for its unamortized beneficial conversion feature of $nil and $6,247 as of June 30, 2012 and December 31, 2011, respectively.		–		10,043

On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On November 2, 2011, the Company received $32,500, which is due May 28, 2012.  The note is currently in default.  The draw on the note is discounted for its unamortized beneficial conversion feature of $nil and $12,147 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $1,716 and $nil, respectively.	34,216	20,353
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On November 18, 2011, the Company received $11,950, which is due May 28, 2012. The note is currently is default. The draw on the note is discounted for its unamortized beneficial conversion feature of $nil and $4,738 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $589 and $nil, respectively.	12,539	7,212
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On December 5, 2011, the Company received $7,960, which is due June 5, 2012. The note is currently in default. The draw on the note is discounted for its unamortized beneficial conversion feature of $nil and $3,816 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $363 and $nil, respectively.	8,323	4,144
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On December 15, 2011, the Company received $9,950, which is due June 15, 2012. The note is currently in default. The draw on the note is discounted for its unamortized beneficial conversion feature of $nil and $4,544 as of June 30, 2012 and December 31, 2011, respectively.  Accrued interest is equal to $431 and $nil, respectively.	10,381	5,406
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On January 2, 2012, the Company received $164,150, which is due September 30, 2012.  $2,000 was paid on the note during the six months ended June 30, 2012.  During the six months ended June 30, 2012, $40,000 of the note was converted to series A preferred stock and $62,450 was converted to common stock. The draw on the note is discounted for its unamortized beneficial conversion feature of $22,556 .  Accrued interest is equal to $4,016.	41,160	–
Unsecured $40,000 convertible note payable to Southridge Partners II LP, which bears interest at 5% per annum and due June 30, 2012.  The note is currently in default. The note includes a redemption premium of $8,000 and is discounted for its unamortized beneficial conversion feature of $nil at June 30, 2012.  Accrued interest is equal to $981.	48,981	–
Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and due October 5, 2012.  The note is discounted for its unamortized beneficial conversion feature of $7,615 at June 30, 2012.  Accrued interest is equal to $1,275.	26,160	–
Unsecured $60,000 note payable to Street Capital, Inc., which bears no interest and due July 5, 2012.  During the six months ended June 30, 2012, the note was purchased by Ironridge Global IV, Ltd.  The Company issued 600,000 shares of common stock to Street capital as an incentive to provide the loan.  The note is discounted for its unamortized fair value of the common stock of $nil at June 30, 2012.	–	–

Unsecured $10,000 convertible note payable to Southridge Partners II LP, which bears interest at 5% per annum and due June 30, 2012. The note is currently in default. The note includes a redemption premium of $2,000 and is discounted for its unamortized beneficial conversion feature of $nil at June 30, 2012.  Accrued interest is equal to $226.	12,226	–
Unsecured $37,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and due November 16 2012.  The note is discounted for its unamortized beneficial conversion feature of $16,997 at June 30, 2012.  Accrued interest is equal to $1,126.	21,629	–
Unsecured $30,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due October 17 2012.  The note is discounted for its unamortized beneficial conversion feature of $13,457 at June 30, 2012.  Accrued interest is equal to $1,322.	17,865	–
On February 17, 2012, Panache Capital, LLC entered into an agreement to purchase $50,000 of the note payable to Azfar Haque.  The Company exchange the original note to Mr. Haque with a new note to Pananche which bears interest at 10% per annum and due February 17, 2013.  During the six months ended June 30, 2012, $44,348 of the note was converted to common stock.  The note is discounted for its unamortized beneficial conversion feature of $4,519 at June 30, 2012.  Accrued interest is equal to $474.	1,607	–
In February 2012, Magna Group, LLC entered into two agreements to purchase a total of $275,000 of the note payable to Azfar Haque.  The Company exchanged the original note to Mr. Haque with new notes to Magna which bear interest at 12% per annum and due February 24, 2013.  During the six months ended June 30, 2012, the entire note balance, including accrued interest of $600, totaling $275,600 was converted to common stock.	–	–
Unsecured $16,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due May 3, 2013.  The note is discounted for its unamortized beneficial conversion feature of $13,457 at June 30, 2012.  Accrued interest is equal to $305.	2,848
Unsecured $10,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due January 3, 2013.  The note is discounted for its unamortized beneficial conversion feature of $8,162 at June 30, 2012.  Accrued interest is equal to $148.	1,986
Unsecured $3,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due January 21, 2013.  The note is discounted for its unamortized beneficial conversion feature of $2,509 at June 30, 2012.  Accrued interest is equal to $39.	530
Unsecured $12,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due February 5, 2013.  The note is discounted for its unamortized beneficial conversion feature of $10,775 at June 30, 2012.  Accrued interest is equal to $99.	1,324

	June 30,  2012		December 31,  2011
Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and due February 25, 2012.  The note is discounted for its unamortized beneficial conversion feature of $20,674 at June 30, 2012.  Accrued interest is equal to $271.		12,097		–
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On May 10, 2012, the Company received $3,200, which is due September 30, 2012. The draw on the note is discounted for its unamortized beneficial conversion feature of $910 at June 30, 2012.  Accrued interest is equal to $22.		2,312		–
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On June 7, 2012, the Company received $2,500, which is due September 30, 2012. The draw on the note is discounted for its unamortized beneficial conversion feature of $889 at June 30, 2012.  Accrued interest is equal to $8.		1,619		–
On November 2, 2011, the Company entered into a Unsecured Convertible Promissory Note Agreement with Bulldog Insurance for up to $250,000, which bears interest at 8% per annum.  On June 12, 2012, the Company received $9,500, which is due September 30, 2012. The draw on the note is discounted for its unamortized beneficial conversion feature of $3,531 at June 30, 2012.  Accrued interest is equal to $23.		5,992		–
Subtotal, Loans Payable, Current		274,410		711,882
Loans Payable, Non-current:
Unsecured $70,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due October 24 2013.  The note is discounted for its unamortized beneficial conversion feature of $55,377 at June 30, 2012.  Accrued interest is equal to $2,922.		17,545		–
Total Loans Payable	$	291,955	$	711,882

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7. Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

NOTE 7 - Subsequent Events

On July 2, 2012, the Company issued 75,700,000 shares of the Company’s common stock to Ironridge in reliance on the private placement exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 3(a)(10) thereof. The shares issued to Ironridge were issued pursuant to a Stipulation for Settlement of Claims (the “Stipulation”) filed by the Company and Ironridge in the Superior Court for the State of California, County of Los Angeles (Case No. BC481395) on April 20, 2012 in settlement of claims purchased by Ironridge from certain creditors of the Company.

On July 5, 2012, the Company issued 8,209,315 shares of its common stock in conversion of loans payable in the amount of $9,000.

On July 5, 2012, the Company issued 536 shares of its series B preferred stock in conversion of 1,032,011 shares of its Series A Preferred stock to an investor.

On July 6, 2012, the Company issued a $5,500 unsecured convertible promissory note to Hanover Holdings I, LLC. The note bears interest at 12% per annum, is due March 6, 2013, and is convertible at a 45% discount to the average of the three low trading prices during the ten day period prior to the conversion date.

On July 10, 2012, the Company issued 33,644,523 shares of its common stock in conversion of loans payable in the amount of $40,400.

On July 13, 2012, the Company issued 5,272,727 shares of its common stock in conversion of loans payable in the amount of $5,800.

On July 17, 2012, the Company issued a $42,500 unsecured convertible promissory note to Asher Enterprises, Inc. The note bears interest at 8% per annum, is due April 19, 2013, and is convertible at a 42% discount to the average of the three low trading prices during the ten day period prior to the conversion date.

On July 19, 2012, the Company issued 40,000,000 shares of the Company’s common stock to Ironridge in reliance on the private placement exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 3(a)(10) thereof. The shares issued to Ironridge were issued pursuant to the Stipulation filed by the Company and Ironridge in the Superior Court for the State of California, County of Los Angeles (Case No. BC481395) on April 20, 2012 in settlement of claims purchased by Ironridge from certain creditors of the Company.

On July 20, 2012, the Company issued 62,598,277 shares of its common stock in conversion of loans payable in the amount of $50,000.

On July 26, 2012, the Company issued a $15,000 unsecured convertible promissory note to Hanover Holdings I, LLC. The note bears interest at 12% per annum, is due March 26, 2013, and is convertible at a 45% discount to the average of the three low trading prices during the ten day period prior to the conversion date.

On July 27, 2012, the Company issued 50,000,000 shares of the Company’s common stock to Ironridge in reliance on the private placement exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 3(a)(10) thereof. The shares issued to Ironridge were issued pursuant to the Stipulation filed by the Company and Ironridge in the Superior Court for the State of California, County of Los Angeles (Case No. BC481395) on April 20, 2012 in settlement of claims purchased by Ironridge from certain creditors of the Company.

On July 30, 2012, the Company issued 22,222,223 shares of its common stock in conversion of loans payable in the amount of $20,000.

On August 5, 2012, the Company’s wholly-owned subsidiary, Wetwinds Inc., entered into a license agreement with WEC ASSET LLC for the rights to use a certain Social Media concept developed by WEB ASSET LLC. The license agreement calls for royalty payments of 49% of all revenues derived for the use of the licensed rights subsequent to the Company’s initial $2,000,000 of revenue, to be paid quarterly. WEB ASSET LLC is owned by BBGN&K, which Mr. Kayode Aladesuyi is the managing member.

On August 6, 2012, the Company issued 25,641,025 shares of its common stock in conversion of loans payable in the amount of $20,000.

On August 6, 2012, the Company issued 49,000,000 shares of the Company’s common stock to Ironridge in reliance on the private placement exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 3(a)(10) thereof. The shares issued to Ironridge were issued pursuant to the Stipulation filed by the Company and Ironridge in the Superior Court for the State of California, County of Los Angeles (Case No. BC481395) on April 20, 2012 in settlement of claims purchased by Ironridge from certain creditors of the Company.

The Company has evaluated subsequent events through the date the financial statements were issued and filed with Securities and Exchange Commission. The Company has determined that there are no other events that warrant disclosure or recognition in the financial statements.

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1. Nature of Business, Presentation, and Going Concern (Policies)

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

The Company has created an integration of Radio Frequency Identification Technology (“RFID”) and GPS technology and is an international provider of supply chain management solutions offering real-time visibility in the supply chain with integrated RFID/GPS and other telemetry products.  These solutions help businesses worldwide to increase asset management, provide safety and security, increase productivity, and deliver real-time visibility of the supply chain through automation.

The Company’s development of GPS devices embedded with RFID modules represents its core technology and products. The Company has licensed various patents relating to the technology used in the Company’s products and has commenced sales and commercialization of the technology which the Company expects will result in revenue that will allow the Company to sustain its current operation and get to a profitable status. 

The Company launched sales operations in 2008 but subsequently withdrew sales and commercial resources from the market mid-2008 and 2009 due to the negative economic and market conditions.  During that time, the Company refocused its efforts on the redesign and integration of RFID and GPS technologies into its products.   Commercial sales were re-established in 2010.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information.  Accordingly, they do not include all of the information and footnotes required in annual financial statements. In the opinion of management, the unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position and results of operations and cash flows. All intercompany transactions and accounts have been eliminated in consolidation. The results of operations presented are not necessarily indicative of the results to be expected for any other interim period or for the entire year.

These unaudited consolidated financial statements should be read in conjunction with our 2011 annual consolidated financial statements included in our annual report on Form 10-K/A, filed with the SEC on May 4, 2012.

Going Concern

The accompanying unaudited consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As reflected in the accompanying unaudited consolidated financial statements, the Company had an accumulated deficit of $15,273,499 at June 30, 2012, a net loss and net cash used in operations of $2,210,904 and $778,184, respectively, for the six months ended June 31, 2012.  These conditions raise substantial doubt about the Company’s ability to continue as a going concern.  

 The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan, generate revenues, and continue to raise additional investment capital.  No assurance can be given that the Company will be successful in these efforts.

 The unaudited consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.  Management believes that actions presently being taken to obtain additional funding and implement its strategic plans will afford the Company the opportunity to continue as a going concern.

Concentration of Credit Risk

The Company grants unsecured credit to commercial and governmental customers in the United States and abroad. Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. As of June 30, 2012, five customers account for 70% of the total accounts receivable compared to three customers accounting for 77% at December 31, 2011.

 The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience, customer specific facts and economic conditions. Bad debt expense was $186,669 and $nil for the six months ended June 30, 2012 and 2011, respectively. At June 30, 2012 and December 31, 2011, the allowance for doubtful accounts was $186,669 and $nil, respectively.

 Outstanding account balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure to its customers.

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3. Related Parties (Tables)

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Loans payable related parties

Loans payable – related parties at June 30, 2012 and December 31, 2011 consist of the following:

	June 30, 2012		December 31, 2011
Unsecured non-interest bearing note payable, due on demand, to Frank Russo, a Director of the Company.	$	409,979	$	409,979
Unsecured note payable to Edward Eppel,  a Director of the Company, which bears interest at 10% per annum and is due on demand.  Accrued interest is equal to $23,652 and $15,763, respectively.		197,208		189,319
Unsecured non-interest bearing note payable, due on demand, to Anis Sherali, a Director of the Company.  During the six months ended June 30, 2012, Mr. Sherali loaned an additional $56,500 to the Company and converted the entire note balance of $87,500 preferred stock.		–		31,000
Total	$	607,187	$	630,298

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3. Related Parties (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Unsecured note payable	$ 607,187	$ 630,298
Frank Russo [Member]
Unsecured note payable	409,979	409,979
Edward Eppel [Member]
Unsecured note payable	197,208	189,319
Anis Sherali [Member]
Unsecured note payable		$ 31,000

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6. Commitments and Contingencies (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Commitments and Contingencies Disclosure [Abstract]
Lease Term	66 months
Monthly Payment	$ 2,163
Rent expense	$ 15,143	$ 32,641

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Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net loss	$ (2,210,904)	$ (478,199)
Adjustments to reconcile net loss to net cash used in operations:
Noncontrolling interests	(50,172)	(17,323)
Depreciation and amortization	90,132	79,890
Provision for doubtful accounts	186,669	0
Issuance of loan payable for consulting services	60,000	0
Stock issued for services	125,205	131,250
Amortization of prepaid license fee	25,000	0
Amortization of payment redemption premium as interest	12,076	0
Gain on recovery of redemption premiums	(17,625)	0
Gain on settlement of loans payable	(38,646)	0
Gain on settlement of accounts payable	(102,495)	0
Loss on conversion of debt	575,263	0
Change in derivative liability	10,809	0
Accretion of beneficial conversion feature on convertible notes payable as interest	466,611	0
Accretion of stock discounts to comvetible notes payable as interest	2,160	0
Interest accrued on loans payable	40,280	42,129
Changes in operating assets and liabilities:
Accounts receivable, net	(624,045)	(179,434)
Inventory	(105,811)	14,496
Security deposits	(15,479)	0
Escrow deposits	(393)	7,787
Bank overdraft	(11,881)	16,003
Accounts payable and accrued expenses	728,108	45,377
Accrued payroll and related liabilities	76,954	150,494
Net cash used in operating activities	(778,184)	(187,530)
Cash flows from investing activities:
Capital expenditures	(700)	0
Net cash from investing activities	(700)	0
Cash flows from financing activities:
Proceeds from issuance of common stock	1,000	103,000
Proceeds from issuance of preferred stock	113,400	0
Proceeds from preferred stock subscription	115,002	0
Proceeds from loans payable	486,926	0
Proceeds from loans payable - related party	56,500	130,419
Repayments of loans payable	(10,100)	0
Repayments of loans payable - related party	0	(46,575)
Net cash from financing activities	762,728	186,844
Net increase (decrease) in cash	(16,156)	(686)
Cash at beginning of period	53,519	1,278
Cash at end of period	37,363	592
Supplemental disclosure of cash flow information:
Cash paid for interest	354	2,254
Cash paid for taxes	0	0
Non-cash investing and financing activities:
Issuance of 334,850,199 and 7,000,000 shares of common stock in conversion of loans payable	503,836	100,000
Issuance of 4,055,556 shares of common stock in conversion of loans payable - related party, resepctively	0	37,500
Issuance of 1,000,000 shares of series A preferred stock in conversion of loans payable	57,000	0
Issuance of 2,592,898 shares of series A preferred stock in conversion of loans payable - related party	87,500	0
Payment redemption premiums on convertible notes payable	10,000	0
Loans and accounts payable converted to Amounts payable in common stock	1,068,345	0
Issuance of 109,500,000 shares of common stock in settlement of loans and accounts payable converted to Amounts payable in common stock	563,460	0
Issuance of 4,324,515 shares of Series A preferred stock to related parties in conversion of 86,490,344 shares of common stock	86,490	0
Issuance of 372,000 shares of Series A preferred stock to third parties in conversion of 7,440,000 shares of common stock	7,440	0
Issuance of 1,500,000 shares of series B preferred stock under stock subscription	1,500,000	0
Beneficial conversion feature of convertible notes payable	606,669	0
Discount for stock issued in connection with issuance of note payable	2,160	0
Issuance of 357,143 shares of common stock in conversion of accounts payable	0	2,500
Issuance of 7,500,000 and 32,857,143 shares of common stock in conversion of accrued salaries	22,500	230,000
Issuance of 408,164 shares of series A preferred stock in conversion of accrued salaries	$ 40,000	$ 0

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4. Amounts Payable in Common Stock and Derivative Liability

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

NOTE 4 - Amounts Payable in Common Stock and Derivative Liability

During the six months ended June 30, 2012, Ironridge Global IV, Ltd. (“Ironridge”) purchased $826,367 of accounts payable and $241,978 of loans payable, for a total of $1,068,345, from certain creditors of the Company. On April 20, 2012, the Superior Court of the State of California for the County of Los Angeles, Central District approved a Stipulation for Settlement of Claims (the “Settlement of Claims”) in the favor of Ironridge. The Settlement of Claims calls for the amount to be paid by issuance of the Company’s common stock. The number of shares of the common stock is to be calculated based on the volume weighted average price (“VWAP”) of the common stock over the calculation period, not to exceed the arithmetic average of the individual daily VWAPs of any five trading days during the calculation period, less a discount of 35%. The calculation period is defined as the period from the approval of the Settlement of Claims until the settlement is completed.

As the terms of the settlement include issuing common stock at a 35% discount to the conversion price, a derivative liability for the discount was established at the time of the Settlement of Claims of $575,263, which was charged to operations during the six months ended June 30, 2012 as a loss on conversion of debt. The derivative liability is revalued at the end of each reporting period with any change in the liability being charged to operations.

As common stock is issued in installments on the settlement, the Amounts Payable in Common Stock and the Derivative Liability will be reduced accordingly. During the six months ended June 30, 2012, 109,500,000 shares of common stock, with a market value of $563,460, were issued to Ironridge in settlement of $359,223 of the liability, resulting in the reduction of the derivative liability of $204,237.

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2. Loans Payable (Details Narrative) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Accrued interest expense	$ 32,391		$ 95,583
Borrowed Money as debt	486,926		244,755
Payments of loans	10,100		2,500
Loans payable conversion in shares	334,850,199		14,748,313
Loans payable conversion value	503,836	100,000	394,619
Outstanding balance of the loan, net of discounts	17,545		0
UnsecuredConvertiblePromissoryNoteAgreementWithBulldogInsuranceMember
Accrued interest expense	4,016
Loans payable conversion in shares	36,248,424
Loans payable conversion value	62,450
Interest expense	44,130
Outstanding balance of the loan, net of discounts	119,279
Interest rate on notes	8.00%
UnsecuredConvertiblePromissoryNoteAgreementWithBulldogInsuranceMember | RepaymentOfDebtMember
Payments of loans	2,000
UnsecuredConvertiblePromissoryNoteAgreementWithBulldogInsuranceMember | NovemberTwoTwoThousandElevenMember
Interest expense	972
Interest rate on notes	8.00%
Unsecured Convertible Promissory Note To Southridge Partners II LP [Member]
Accrued interest expense	981
Interest expense	38,261
Interest rate on notes	5.00%
Unsecured Convertible Promissory Note To Southridge Partners II LP [Member] | JanuaryFiveTwoThousandTwelveMember
Accrued interest expense	226
Interest expense	9,167
Outstanding balance of the loan, net of discounts	12,226
Interest rate on notes	5.00%
Unsecured Convertible Promissory Note To Southridge Partners II LP [Member] | FebruarySixteenTwoThousandTwelveMember
Loans payable conversion in shares	25,662,101
Loans payable conversion value	41,250
Interest expense	19,286
UnsecuredConvertiblePromissoryNoteToAsherEnterprises [Member]
Accrued interest expense	1,275
Interest expense	14,052
Outstanding balance of the loan, net of discounts	26,160
Interest rate on notes	8.00%
UnsecuredConvertiblePromissoryNoteToStreetCapitalIncMember
Interest expense	2,160
SGIGroupLLCMember
Loans payable conversion in shares	9,103,332
Loans payable conversion value	10,000
UnsecuredConvertiblePromissoryNoteToAsherEnterprisesIncMember | FebruaryFourteenTwoThousandTwelveMember
Accrued interest expense	1,126
Interest expense	16,753
Outstanding balance of the loan, net of discounts	21,629
Interest rate on notes	8.00%
UnsecuredConvertiblePromissoryNoteToAsherEnterprisesIncMember | MayTwentyThreeTwoThousandTwelveMember
Accrued interest expense	271
Interest expense	3,273
Outstanding balance of the loan, net of discounts	12,097
Interest rate on notes	8.00%
UnsecuredConvertiblePromissoryNoteToHanoverHoldingsILLC [Member]
Accrued interest expense	1,322
Interest expense	16,542
Outstanding balance of the loan, net of discounts	17,865
Interest rate on notes	1.00%
UnsecuredConvertiblePromissoryNoteToHanoverHoldingsILLC [Member] | FebruaryTwentyFourTwoThousandTwelveMember
Accrued interest expense	2,922
Interest expense	14,622
Outstanding balance of the loan, net of discounts	17,545
Interest rate on notes	12.00%
UnsecuredConvertiblePromissoryNoteToHanoverHoldingsILLC [Member] | MayThreeTwoThousandTwelveMember
Accrued interest expense	305
Interest expense	2,542
Outstanding balance of the loan, net of discounts	2,848
Interest rate on notes	12.00%
UnsecuredConvertiblePromissoryNoteToHanoverHoldingsILLC [Member] | MaySixteenTwoThousandTwelveMember
Accrued interest expense	148
Interest expense	1,837
Outstanding balance of the loan, net of discounts	1,986
Interest rate on notes	12.00%
UnsecuredConvertiblePromissoryNoteToHanoverHoldingsILLC [Member] | MayTwentyOneTwoThousandTwelveMember
Accrued interest expense	39
Interest expense	490
Outstanding balance of the loan, net of discounts	530
Interest rate on notes	12.00%
UnsecuredConvertiblePromissoryNoteToHanoverHoldingsILLC [Member] | JuneFiveTwoThousandTwelveMember
Accrued interest expense	99
Interest expense	1,224
Outstanding balance of the loan, net of discounts	1,324
Interest rate on notes	12.00%
PanacheCapitalLLC [Member]
Accrued interest expense	474
Loans payable conversion in shares	39,342,949
Loans payable conversion value	44,348
Interest expense	22,148
Outstanding balance of the loan, net of discounts	1,607
Interest rate on notes	1.00%
MagnaGroupLLC [Member]
Loans payable conversion in shares	23,241,401
Loans payable conversion value	75,000
Interest expense	61,184
Interest rate on notes	12.00%
MagnaGroupLLC [Member] | FebruaryTwentyFourTwoThousandTwelveMember
Accrued interest expense	600
Loans payable conversion in shares	147,537,153
Loans payable conversion value	60,600
Interest expense	150,000
Interest rate on notes	12.00%
UnsecuredConvertiblePromissoryNoteAgreementWithBulldogInsurance1Member | NovemberTwoTwoThousandElevenMember
Accrued interest expense	22
Payments of loans	3,000
Loans payable conversion value	504
Interest expense	1,275
Outstanding balance of the loan, net of discounts	2,312
Interest rate on notes	8.00%
UnsecuredConvertiblePromissoryNoteAgreementWithBulldogInsurance2Member | NovemberTwoTwoThousandElevenMember
Accrued interest expense	8
Payments of loans	1,500
Interest expense	611
Outstanding balance of the loan, net of discounts	1,619
Interest rate on notes	8.00%
SeriesAPreferredStockMember
Loans payable conversion in shares	1,000,000
Loans payable conversion value	57,000
SeriesAPreferredStockMember | UnsecuredConvertiblePromissoryNoteAgreementWithBulldogInsuranceMember
Loans payable conversion in shares	800,000
Loans payable conversion value	$ 40,000