Consolidated Balance Sheets
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June 30. 2011
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December 31. 2010
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Previously
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Previously
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Reported
|
Adjustment
|
Restated
|
Reported
|
Adjustment
|
Restated
|
|||||||||||||||||||
Derivative Liability-Warrants
|
$ | - | $ | 1,110,295 | $ | 1,110,295 | $ | - | $ | 459,537 | $ | 459,537 | ||||||||||||
Derivative Liability-Series A Convertible Preferred Stock
|
- | - | - | - | 10,623,624 | 10,623,624 | ||||||||||||||||||
Additional paid-in capital
|
9,886,010 | 31,550,283 | 41,436,293 | 8,115,405 | 889,142 | 9,004,547 | ||||||||||||||||||
Accumulated deficit
|
(11,796,870 | ) | (32,660,578 | ) | (44,457,448 | ) | (10,050,612 | ) | (11,972,303 | ) | (22,022,915 | ) | ||||||||||||
Total Liabilities and Stockholders' Deficit
|
1,149,447 | - | 1,149,447 | 730,714 | - | 730,714 | ||||||||||||||||||
Consolidated Statements of Operations
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Six Months Ended June 30. 2011
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Six Months Ended June 30. 2010
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Previously
|
Previously
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|||||||||||||||||||||||
Reported
|
Adjustment
|
Restated
|
Reported
|
Adjustment
|
Restated
|
|||||||||||||||||||
General and administrative expenses
|
$ | 926,580 | $ | 262,164 | $ | 1,188,744 | $ | 706,986 | $ | 217,939 | $ | 924,925 | ||||||||||||
Research and development expenses
|
493,465 | 4,267 | 497,732 | 423,576 | 7,574 | 431,150 | ||||||||||||||||||
Operating (loss)
|
(1,703,266 | ) | (266,431 | ) | (1,969,637 | ) | (1,103,833 | ) | (225,513 | ) | (1,329,346 | ) | ||||||||||||
Derivative Income (Expense)-Warrants
|
- | (650,758 | ) | (650,758 | ) | - | 181,194 | 181,194 | ||||||||||||||||
Derivative Income (Expense)- Series A Convertible Preferred Stock:
|
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Original Investors
|
- | (13,238,033 | ) | (13,238,033 | ) | - | 2,090,860 | 2,090,860 | ||||||||||||||||
New Investors
|
- | (6,533,053 | ) | (6,533,053 | ) | - | 688,601 | 688,601 | ||||||||||||||||
Total other income (expense)
|
(47,865 | ) | (20,421,844 | ) | (20,469,709 | ) | (151,739 | ) | 2,960,655 | 2,808,916 | ||||||||||||||
Net income (loss)
|
(1,751,071 | ) | (20,688,275 | ) | (22,439,346 | ) | (1,255,572 | ) | 2,735,142 | 1,479,570 | ||||||||||||||
Net (loss) income per common share, basic
|
$ | (0.01 | ) | $ | (0.17 | ) | $ | (0.18 | ) | $ | (0.01 | ) | $ | 0.02 | $ | 0.01 |
Consolidated Statements of Operations
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Three Months Ended June 30. 2011
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Three Months Ended June 30. 2010
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Previously
|
Previously
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|||||||||||||||||||||||
Reported
|
Adjustment
|
Restated
|
Reported
|
Adjustment
|
Restated
|
|||||||||||||||||||
General and administrative expenses
|
$ | 558,561 | $ | 196,869 | $ | 755,430 | $ | 428,793 | $ | 170,505 | $ | 599,298 | ||||||||||||
Research and development expenses
|
269,062 | - | 269,062 | 279,153 | 4,027 | 283,180 | ||||||||||||||||||
Operating (loss)
|
(923,842 | ) | (196,869 | ) | (1,120,711 | ) | (722,099 | ) | (174,532 | ) | (896,631 | ) | ||||||||||||
Derivative Income (Expense)-Warrants
|
- | 151,264 | 151,264 | - | 187,595 | 187,595 | ||||||||||||||||||
Derivative Income (Expense)- Series A Convertible Preferred Stock:
|
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Original Investors
|
- | (1,120,160 | ) | (1,120,160 | ) | - | 2,536,987 | 2,536,987 | ||||||||||||||||
New Investors
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- | (560,080 | ) | (560,080 | ) | - | 731,429 | 731,429 | ||||||||||||||||
Total other income (expense)
|
(37,606 | ) | (1,528,976 | ) | (1,566,582 | ) | (139,572 | ) | 3,456,011 | 3,316,439 | ||||||||||||||
Net income (loss)
|
(961,448 | ) | (1,725,845 | ) | (2,687,293 | ) | (861,671 | ) | 3,281,479 | 2,419,808 | ||||||||||||||
Net (loss) income per common share, basic
|
$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | 0.03 | $ | 0.02 | ||||||||
Consolidated Statements of Stockholders' Deficit
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Six Months Ended June 30. 2011
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Previously
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Reported
|
Adjustment
|
Restated
|
||||||||||||||||||||||
Accumulated deficit -beginning of period
|
$ | (10,050,612 | ) | $ | (11,972,303 | ) | $ | (22,022,915 | ) | |||||||||||||||
Issuance of restricted shares for outside services
|
282,257 | 188,171 | 470,428 | |||||||||||||||||||||
Issuance of restricted shares and options for employee services
|
184,986 | 78,260 | 263,246 | |||||||||||||||||||||
Application of derivative liability to additional paid in capital from conversion of Series A Preferred Stock
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- | 30,394,710 | 30,394,710 | |||||||||||||||||||||
Net loss for six months ended June 30, 2011
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(1,751,071 | ) | (20,688,275 | ) | (22,439,346 | ) | ||||||||||||||||||
Accumulated Deficit-June 30, 2011
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(11,796,870 | ) | (32,660,578 | ) | (44,457,448 | ) | ||||||||||||||||||
Total Stockholders Deficit -June 30, 2011
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(1,791,983 | ) | (1,110,295 | ) | (2,902,278 | ) | ||||||||||||||||||
Consolidated Statements of Cash flows
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Six Months Ended June 30. 2011
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Six Months Ended June 30. 2010
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Previously
|
Previously
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|||||||||||||||||||||||
Reported
|
Adjustment
|
Restated
|
Reported
|
Adjustment
|
Restated
|
|||||||||||||||||||
Cash flows from operating activities:
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Net loss
|
$ | (1,751,071 | ) | $ | (20,688,275 | ) | $ | (22,439,346 | ) | $ | (1,255,572 | ) | $ | 2,735,142 | $ | 1,479,570 | ||||||||
Adjustments to reconcile net loss to net cash used by
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operating activities:
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Issuance of restricted common and preferred stock and options for services
|
467,243 | 266,431 | 733,674 | 351,517 | 225,513 | 577,030 | ||||||||||||||||||
Derivative expense (income)-warrants
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- | 650,758 | 650,758 | - | (181,194 | ) | (181,194 | ) | ||||||||||||||||
Derivative expense (income)-Ser. A Convertible Preferred Stock
|
- | 19,771,086 | 19,771,086 | - | (2,779,461 | ) | (2,779,461 | ) | ||||||||||||||||
Net cash used by operating activities
|
(772,352 | ) | - | (772,352 | ) | (470,701 | ) | - | (470,701 | ) |
Consolidated Balance Sheets
|
December 31. 2010
|
December 31. 2009
|
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Previously
Reported |
Adjustments
|
Restated
|
Previously
Reported |
Adjustment
|
Restated
|
|||||||||||||||||||
Derivative Liability-Warrants
|
$ | - | $ | 459,537 | $ | 459,537 | $ | - | $ | 566,153 | $ | 566,153 | ||||||||||||
Derivative Liability-Series A Convertible Preferred Stock
|
- | 10,623,624 | 10,623,624 | - | 10,957,305 | 10,957,305 | ||||||||||||||||||
Additional paid-in capital
|
8,115,405 | 889,142 | 9,004,547 | 6,438,183 | 595,790 | 7,033,973 | ||||||||||||||||||
Accumulated deficit
|
(10,050,612 | ) | (11,972,303 | ) | (22,022,915 | ) | (7,884,328 | ) | (12,119,248 | ) | (20,003,576 | ) | ||||||||||||
Total Liabilities and Stockholders' Deficit
|
730,714 | - | 730,714 | 616,431 | - | 616,431 | ||||||||||||||||||
Consolidated Statements of Operations
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Year Ended December 31. 2010
|
Year Ended December 31. 2009
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Previously
Reported |
Adjustments
|
Restated
|
Previously
Reported |
Adjustments
|
Restated
|
|||||||||||||||||||
General and administrative expenses
|
$ | 1,241,379 | $ | 281,538 | $ | 1,522,917 | $ | 1,332,757 | $ | 498,703 | $ | 1,831,460 | ||||||||||||
Research and development expenses
|
830,611 | 11,814 | 842,425 | 1,115,795 | 97,087 | 1,212,882 | ||||||||||||||||||
Operating (loss)
|
(1,972,696 | ) | (293,352 | ) | (2,266,048 | ) | (2,487,243 | ) | (595,790 | ) | (3,083,033 | ) | ||||||||||||
Derivative Income (Expense)-Warrants
|
- | 106,616 | 106,616 | - | (566,153 | ) | (566,153 | ) | ||||||||||||||||
Derivative Income (Expense)- Series A Convertible Preferred Stock:
|
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Original Investors
|
- | 331,859 | 331,859 | - | (4,679,570 | ) | (4,679,570 | ) | ||||||||||||||||
New Investors
|
- | 1,822 | 1,822 | - | 25,876 | 25,876 | ||||||||||||||||||
Total other income (expense)
|
(198,713 | ) | 440,297 | 241,584 | (37,858 | ) | (5,219,847 | ) | (5,257,705 | ) | ||||||||||||||
Net (loss) income
|
(2,171,409 | ) | 146,945 | (2,024,464 | ) | (2,525,101 | ) | (5,815,637 | ) | (8,340,738 | ) | |||||||||||||
Net loss per common share, basic
|
$ | (0.02 | ) | $ | - | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | (0.09 | ) | |||||||
Consolidated Statements of Stockholders' Deficit
|
Year Ended December 31. 2010
|
Year Ended December 31. 2009
|
||||||||||||||||||||||
Previously
Reported |
Adjustments
|
Restated
|
Previously
Reported |
Adjustments
|
Restated
|
|||||||||||||||||||
Accumulated deficit -beginning of year
|
$ | (7,884,328 | ) | $ | (12,119,248 | ) | $ | (20,003,576 | ) | $ | (5,359,227 | ) | $ | (6,303,611 | ) | $ | (11,662,838 | ) | ||||||
Issuance of restricted shares for outside services
|
365,376 | 293,352 | 608,687 | 893,685 | 595,790 | 1,489,475 | ||||||||||||||||||
Issuance of restricted shares and options for employee services
|
157,403 | 293,352 | 207,444 | - | - | - | ||||||||||||||||||
Net loss for year
|
(2,171,409 | ) | 146,945 | (2,024,464 | ) | (2,525,101 | ) | (5,815,637 | ) | (8,340,738 | ) | |||||||||||||
Accumulated Deficit-end of year
|
(10,050,612 | ) | (11,972,303 | ) | (22,022,915 | ) | (7,884,328 | ) | (12,119,248 | ) | (20,003,576 | ) | ||||||||||||
Total Stockholders Deficit -end of year
|
(1,834,359 | ) | (11,083,161 | ) | (12,917,520 | ) | (1,453,722 | ) | (11,523,458 | ) | (12,977,180 | ) | ||||||||||||
Consolidated Statements of Cash flows
|
Year Ended December 31. 2010
|
Year Ended December 31. 2009
|
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Previously
Reported |
Adjustments
|
Restated
|
Previously
Reported |
Adjustments
|
Restated
|
|||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||
Net loss
|
$ | (2,171,409 | ) | $ | 146,945 | $ | (2,024,464 | ) | $ | (2,525,101 | ) | $ | (5,815,637 | ) | $ | (8,340,738 | ) | |||||||
Adjustments to reconcile net loss to net cash used by operating activities:
|
||||||||||||||||||||||||
Issuance of restricted common and preferred stock and options for services
|
522,779 | 293,352 | 816,131 | 893,685 | 595,790 | 1,489,475 | ||||||||||||||||||
(Income) loss on derivative liability-warrants
|
- | (106,616 | ) | (106,616 | ) | - | 566,153 | 566,153 | ||||||||||||||||
(Income) loss on derivative liability-Ser. A Convertible Preferred Stock
|
- | (333,681 | ) | (333,681 | ) | - | 4,653,694 | 4,653,694 | ||||||||||||||||
Net cash used by operating activities
|
(956,637 | ) | - | (956,637 | ) | (759,477 | ) | - | (759,477 | ) |