RESTATEMENT

3 Months Ended

Mar. 31, 2012

RESTATEMENT

RESTATEMENT

NOTE 10 – RESTATEMENT

The Company has restated its financial statements for quarter ended March 31, 2011.  The significant changes made are further described and summarized below.

The Company had not previously recorded the derivative liabilities associated with convertible debt, debentures, and warrants issued in the first quarter of 2011.  The Company has restated its financial statements for the period ended March 31, 2011 to record these corrections.

The following table highlights the significant areas of change:

	Three Months Ended March 31, 2011
	As Previously
	Reported			Restated
	March 31,			March 31,
	2011			2011			Change
Total Assets	$	8,306,140		$	8,306,140		$	-
Total Liabilities	$	(2,928,754	)	$	(6,975,569	)	$	(4,046,815	)
Stockholders' Equity	$	(5,377,356	)	$	(1,330,571	)	$	4,046,785
Net Income (Loss)	$	(2,743,921	)	$	(4,479,723	)	$	(1,735,802	)
Income (Loss) available to common stockholders	$	(2,743,921	)	$	(4,479,723	)	$	(1,735,802	)
Basic Loss per share	$	(0.06	)	$	(0.10	)	$	(0.04	)