Note 15 - Transition Period Comparative Data (Unaudited)

The information furnished in these interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which in our opinion, are necessary for a fair presentation of such financial statements.

Consolidated Statements of Operations

	Three Months Ended			Three Months Ended
	December 31, 2011			December 31, 2010
Revenue	$	1,697,641		$	-
Cost of goods sold		1,669,569			-
Gross profit		28,072			-

Operating expenses:
Research and development costs		236,995			43,066
Marketing and sales		342,872			71,086
General and administrative expenses		578,859			1,925,595
Depreciation and amortization		44,164			74,194
Total operating costs and expenses		1,202,890			2,113,941

Loss from operations		(1,174,818	)		(2,113,941	)

Total other expense :
Interest expense, net		32,827			27,052
Amortization of debt and preferred stock discounts		281,684			133,786
Gain from change in fair value of derivative liability		(5,392	)		-
Total other expense		309,119			160,838

Loss before income taxes		(1,483,937	)		(2,274,779	)

Provision for income taxes		-			-

Net loss		(1,483,937	)		(2,274,779	)
Accretion of preferred dividends and beneficial conversion feature		(210,180	)		-
Net loss attributable to common shareholders	$	(1,694,117	)	$	(2,274,779	)

Weighted average common shares - basic and diluted		25,126,391			23,042,108

Basic and diluted net loss per share	$	(0.07	)	$	(0.10	)

Consolidated Statements of Cash Flows

	For the Three Months Ended December 31,			For the Three Months Ended December 31,
	2011			2010

Cash flow from operating activities:
Net loss	$	(1,483,937	)	$	(2,274,779	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, and amortization		45,088			74,195
Accretion of interest expense on convertible debentures		102,857			133,786
Accretion of preferred stock discount		75,161			-
Accretion of revolving credit agreement discount		55,957			-
Change in fair value of derivative liability		(5,392	)		-
Issuance of common stock and warrants for financial obligations		253,979			1,349,596
Allowance for doubtful accounts		32,731			-
Changes in operating assets and liabilities:
Accounts receivable		(196,140	)		386,763
Inventories		65,080			(10,141	)
Prepaid expenses and other		61,256			(85,175	)
Accounts payable & accrued liabilities		111,293			(149,342	)
Net cash used in operating activities		(882,067	)		(575,097	)

Cash flows from investing activities:
Purchase of equipment and leasehold improvements		(265,007	)		(477	)
Net cash used in investing activities		(265,007	)		(477	)

Cash flows from financing activities:
Proceeds from revolving credit agreement		466,000			-
Issuance of common stock, net of expenses		-			500,000
Repayment of notes and convertible debentures		-			(25,710	)
Net cash provided by financing activities		466,000			474,290

Net (decrease) increase in cash		(681,074	)		(101,284	)
Cash and cash equivalents at beginning of period		2,663,846			886,896
Cash and cash equivalents at end of period	$	1,982,772		$	785,612

Supplemental disclosures of cash flow information:
Cash paid for interest	$	55,394		$	3,773
Accretion of dividends on 10% convertible preferred stock		176,620			-
Common stock issued for consulting services		-			36,750