Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events

Subsequent Events

NOTE 16 – SUBSEQUENT EVENTS

For the purpose of this disclosure we have evaluated potential subsequent events through the date these financial statements were issued, August 12, 2011. There were no reportable subsequent events other than the event described below.

Common Stock Private Placement

In July 2011, we completed a private placement of our common stock by issuing 2,733,335 shares to ten investors in exchange for net proceeds of $718,000. In conjunction with the issuance, we also issued to the investors 1,366,668 warrants to purchase our common stock. The warrants were vested at issuance, have a three year term and an exercise price of $0.44. We plan to use the proceeds for working capital purposes. In conjunction with the issuance, we paid $82,000 in commissions, issued a total of approximately 1.1 million immediately vesting five-year warrants to purchase our common stock at an exercise price of $0.44 to a placement agent and consultant, and incurred $20,000 in legal fees.