NOTE 2 - RESTATEMENT OF FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

NOTE – 2 RESTATEMENT OF FINANCIAL STATEMENTS

NOTE – 2 RESTATEMENT OF FINANCIAL STATEMENTS

The Company identified errors related to understatement of Option expense for the year ended December 31, 2012. The facts underlying the Company’s original conclusion is that 7.5 million stock options granted to President and CEO of the Company, Thom Kidrin, were only 18 month options and were expiring on March 31, 2014. In fact they were five (5) year options expiring in September 2017. Accordingly, all the financial statements for the year ended December 31, 2012 are restated. The Company did not find any understatement in option expenses for the comparative year ended December 31, 2011.

The following table sets forth all the accounts in the original amounts and restated amounts, respectively.

As of December 31, 2012	Original			Adjustment			Restated
Additional paid in capital	$	26,580,244		$	208,682		$	26,788,926
Accumulated deficit	$	(30,130,692	)	$	(208,682	)	$	(30,339,374	)
For the year ended December 31, 2012
Option expense	$	705,918		$	208,682		$	914,600
Operating (loss)	$	(1,664,221	)	$	(208,682	)	$	(1,872,903	)
Net (loss)	$	(1,664,221	)	$	(208,682	)	$	(1,872,903	)