Subsequent to the issuance of our 2010 annual report on Form 10-K, we determined that our consolidated statement of cash flows for the year ended June 30, 2010, reflected a foreign currency exchange loss in the line item “effect of exchange rate changes on cash and cash equivalents”, rather than including it with the adjustments to reconcile net income (loss) to net cash provided by operating activities. Because this is a non-cash expense included in net income, it should have been added back to net income in order to properly reconcile net income to cash provided by operating activities within the statement of cash flows. The exclusion of this adjustment to reconcile net income resulted in understating the net cash provided by operating activities and overstating the effect of exchange rate changes on our cash and cash equivalents line items within the consolidated statement of cash flows.

This error also affected our condensed consolidated statements of cash flows for the nine month period ended March 31, 2010, the six month period ended December 31, 2010, and the three month period ended September 30, 2010. This error did not affect our condensed consolidated balance sheet or condensed consolidated statements of operations for any of the prior periods, nor did it affect the total cash increase or decrease reported for any of the periods.

The statement of cash flows for the three months ended September 30, 2010 as contained herein has been adjusted for the restatement discussed above. The following is a summary of the items reclassified on the originally issued condensed consolidated statements of cash flows for the three months ended September 30, 2010:

CONSOLIDATED STATEMENT OF CASH FLOWS
		As Previously
		Reported		Adjustments		As Restated

Adjustments to reconcile net loss to net cash used in operating activities:
Foreign transaction loss	$	-	$	1,203,532	$	1,203,532
Net cash used in operating activities	$	(2,186,725)	$	1,203,532	$	(983,193)
Effect of exchange rate changes on cash and cash equivalents	$	3,743,499	$	(1,203,532)	$	2,539,967