10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q/A

(Amendment No. 1)

R QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to

Commission File Number:     0-13111

AXION INTERNATIONAL HOLDINGS, INC

  (Exact name of registrant as specified in its charter)

Colorado	84-0846389
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

180 South Street, Suite 104, New Providence, NJ 07974

(Address of principal executive offices)

908-542-0888

(registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ      No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No þ

The number of outstanding shares of the registrant’s common stock, without par value, as of August 17, 2012 was 26,781,378.

EXPLANATORY NOTE

The sole purpose of this Amendment No. 1 to Axion International Holdings, Inc.’s Quarterly Report on Form 10-Q (the “Form 10-Q”) for the quarterly period ended June 30, 2012, as filed with the Securities and Exchange Commission on August 20, 2012, is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 provides the financial statements and related notes for the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

This Amendment No. 1 speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred after the filing of the Form 10-Q and does not modify or update disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

Item 6. Exhibits.

Exhibits:
31.1*	Section 302 Certification of Chief Executive Officer
31.2 *	Section 302 Certification of Principal Financial Officer
32.1 *	Section 906 Certification of Chief Executive Officer and Chief Financial Officer
101.INS **	XBRL Instance Document
101.SCH **	XBRL Taxonomy Extension Schema
101.CAL **	XBRL Taxonomy Extension Calculation Linkbase
101.LAB **	XBRL Taxonomy Extension Label Linkbase
101.PRE **	XBRL Taxonomy Extension Presentation Linkbase
101.DEF **	XBRL Taxonomy Extension Definition Linkbase

* Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012 (File No. 0-13111), as filed with the Securities and Exchange Commission on August .

** Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Axion International Holdings, Inc.
Date:  August 29, 2012	/s/ Donald Fallon
	Donald Fallon
	Chief Financial Officer

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Accrued Liabilities (Detail) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Schedule of Accrued Liabilities [Line Items]
Royalties	$ 254,007	$ 239,129
Payroll	58,161	54,325
Sales tax payable	36,740	29,112
Insurance premiums payable	55,543	20,320
Interest	67,408
Miscellaneous	16,829	16,829
Total accrued liabilities	$ 488,688	$ 359,715

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Income Tax Expense Benefit (Detail) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Components Of Income Tax Expense Benefit [Line Items]
Federal
State
Current Income Tax Expense (Benefit), Total
Increase in valuation allowance			(1,480,000)		(1,260,000)
Benefit of operating loss carry forward			1,480,000		1,260,000
Provision for income taxes, net

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Ten Percent Convertible Redeemable Preferred Stock (Detail) (USD $)	Jun. 30, 2012	Apr. 30, 2011	Jun. 30, 2012 Redeemable Preferred Stock	Dec. 31, 2011 Redeemable Preferred Stock
Temporary Equity [Line Items]
Redeemable preferred stock - face value			$ 7,260,230	$ 7,522,730
Accrued dividends			176,773	176,620
Unamortized discount	(1,600,000)	(828,340)	(1,636,068)	(2,179,094)
Redeemable preferred stock, net of discount			$ 5,800,935	$ 5,520,256

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Schedule of Effective Income Tax Rate Reconciliation (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Income Tax Rate Reconciliation [Line Items]
Statutory federal income tax rate	40.00%	40.00%
Increase in valuation allowance	(40.00%)	(40.00%)
Effective tax rate	0.00%	0.00%

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Convertible Debt - Additional Information (Detail) (USD $)	6 Months Ended		3 Months Ended		6 Months Ended	9 Months Ended		6 Months Ended			6 Months Ended
	Jun. 30, 2012	Jan. 14, 2011	Jun. 30, 2012 10% convertible debentures	Mar. 31, 2011 10% convertible debentures	Jun. 30, 2012 10% convertible debentures	Sep. 30, 2009 10% convertible debentures	Jan. 14, 2011 10% convertible debentures	Jun. 30, 2012 10% convertible debentures After Amendment	Jan. 31, 2011 10% convertible debentures After Amendment	Jan. 14, 2011 10% convertible debentures After Amendment	Jun. 30, 2012 10% convertible debentures After Amendment Maximum	Jan. 14, 2011 10% convertible debentures After Amendment Cash Transactions	Jan. 14, 2011 10% convertible debentures After Amendment Non Cash	Jan. 14, 2011 10% convertible debentures Before Amendment	Jan. 14, 2011 10% convertible debentures Before Amendment Non Cash
Debt Disclosure [Line Items]
Convertible debt, interest rate	8.00%					10.00%						15.00%	18.00%		12.00%
Proceeds from convertible debt						$ 600,000
Convertible debt, maturity date								Jun. 30, 2012
Convertible debt, conversion price for interest payment										$ 0.60				$ 0.90
Convertible debt, conversion price										$ 2.50				$ 2.00
Warrant term									3 years
Number of shares of common stock called by warrants, percentage of outstanding principal		5.00%					5.00%
Warrant exercise price	1.0									0.90
Percent difference in the present value of cash flows between the original terms and the modified terms											10.00%
Loss on debt extinguishment				1,400,000
Fair value of derivative liability			797,000		797,000			797,000
Change in fair value of derivative			2,500		13,300
Principal and accrued interest repaid expense	$ 772,500		$ 600,000

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Restatements - Additional Information (Detail) (USD $)	6 Months Ended			6 Months Ended	9 Months Ended		6 Months Ended			6 Months Ended
	Jun. 30, 2011	Jun. 30, 2012	Jan. 14, 2011	Jun. 30, 2012 10% convertible debentures	Sep. 30, 2009 10% convertible debentures	Jan. 14, 2011 10% convertible debentures	Jun. 30, 2012 10% convertible debentures After Amendment	Jan. 31, 2011 10% convertible debentures After Amendment	Jan. 14, 2011 10% convertible debentures After Amendment	Jun. 30, 2012 10% convertible debentures After Amendment Maximum	Jan. 14, 2011 10% convertible debentures After Amendment Cash Transactions	Jan. 14, 2011 10% convertible debentures After Amendment Non Cash	Jan. 14, 2011 10% convertible debentures Before Amendment	Jan. 14, 2011 10% convertible debentures Before Amendment Non Cash
Convertible debt, interest rate		8.00%			10.00%						15.00%	18.00%		12.00%
Proceeds from convertible debt					$ 600,000
Convertible debt, maturity date							Jun. 30, 2012
Convertible debt, conversion price for interest payment									$ 0.60				$ 0.90
Convertible debt, conversion price									$ 2.50				$ 2.00
Warrant term								3 years
Number of shares of common stock called by warrants, percentage of outstanding principal			5.00%			5.00%
Warrant exercise price		1.0							0.90
Percent difference in the present value of cash flows between the original terms and the modified terms										10.00%
Loss on extinguishment and reacquisition of debt	(1,350,000)			1,400,000
Derivative liability				$ 797,000			$ 797,000

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Business Concentration - Additional Information (Detail)	3 Months Ended	6 Months Ended
	Jun. 30, 2012 Customer Vendor	Jun. 30, 2012 Customer Vendor
Concentration Risk [Line Items]
Number of major customers	13	22
Percentage of revenue from one customer	47.00%	63.00%
Number of major suppliers	2	2
Percentage of total purchases from two contract manufacturers	51.00%	49.00%

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Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Accrued Liabilities

The components of accrued liabilities are:

	June 30, 2012		December 31, 2011
Royalties	$	254,007	$	239,129
Payroll		58,161		54,325
Sales tax payable		36,740		29,112
Insurance premiums payable		55,543		20,320
Interest		67,408		-
Miscellaneous		16,829		16,829
Total accrued liabilities	$	488,688	$	359,715

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Warrant Activity (Detail) (Warrant, USD $)	6 Months Ended
	Jun. 30, 2012
Warrant
Number of shares
Outstanding - January 1, 2012	5,452,141
Granted during the period	3,928,040
Exercised during the period
Outstanding - June 30, 2012	9,380,181
Exercisable at end of period	9,164,181
Weighted-average exercise price
Outstanding - January 1, 2012	$ 1.18
Granted during the period	$ 0.98
Exercised during the period
Outstanding - June 30, 2012	$ 1.10
Exercisable at end of period	$ 1.10

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Derivative Liabilities - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended	3 Months Ended	6 Months Ended		12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Jun. 30, 2012	Jun. 30, 2012 10% convertible debentures	Jun. 30, 2012 10% convertible debentures	Jun. 30, 2012 Bonus Warrants	Dec. 31, 2011 Bonus Warrants	Jun. 30, 2012 Conversion Options	Dec. 31, 2011 Conversion Options	Jun. 30, 2012 Warrant	Dec. 31, 2011 Warrant	Mar. 31, 2012 Warrant
Derivative [Line Items]
Gain or loss on the embedded derivative financial instrument	$ 127,071		$ 113,271					$ (113,271)	$ (5,392)		$ 1,875,463
Derivative liability at fair value								127,071			1,900,000	0
Credited to common stock upon issuance of warrants		1,900,000				(57,034)	(234,731)			(1,875,463)
Derivative liability				797,000	797,000				113,271		1,875,463
Change in fair value of derivative				$ 2,500	$ 13,300

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Effects of Restatement on Consolidated Cash Flows (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011		Jun. 30, 2012	Jun. 30, 2011
Cash flow from operating activities:
Net loss	$ (2,680,793)		$ (3,139,923)	$ (6,360,781)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of convertible debt discount				298,400
Loss on debt extinguishment				1,350,000
Fair value of bonus warrants at debt extinguishment				797,185
Fair value of bonus warrants at grant date				(114,049)
Change in fair value of derivative liabilities - Bonus Warrants	(48,187)		(126,579)	(359,561)
Net cash used in operating activities			(2,542,644)	(3,435,727)
As Previously Reported
Cash flow from operating activities:
Net loss	(2,945,887)			(4,875,778)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of convertible debt discount				486,972
Net cash used in operating activities				(3,435,727)
Adjustments
Cash flow from operating activities:
Net loss	265,094			(1,485,003)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of convertible debt discount				(188,572)	[1]
Loss on debt extinguishment				1,350,000	[2]
Fair value of bonus warrants at debt extinguishment				797,185	[3]
Fair value of bonus warrants at grant date				(114,049)	[4]
Change in fair value of derivative liabilities - Bonus Warrants	$ (48,187)	[5]		$ (359,561)	[6]

[1] to reverse the improper amortization of debt discount.

[2] to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

[3] to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

[4] to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

[5] to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the period.

[6] to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the six months ended June 30, 2011.

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Options Outstanding (Detail) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares issuable upon exercise	6,186,261	5,886,261
Options exercisable	3,734,703
Options not vested	2,451,558
Total shares issuable upon exercise	$ 1.10	$ 1.11
Options exercisable	$ 1.05
Options not vested	$ 1.19
Total shares issuable upon exercise	3 years 4 months 24 days
Options exercisable	3 years 1 month 6 days
Options not vested	3 years 9 months 18 days
Total shares issuable upon exercise	$ 363,419
Options exercisable	106,229
Options not vested	$ 257,190

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Ten Percent Convertible Redeemable Preferred Stock - Additional Information (Detail) (USD $)	1 Months Ended			2 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2012	Mar. 31, 2012	Dec. 31, 2011	Apr. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Temporary Equity [Line Items]
10% Convertible preferred stock, authorized			880,000		880,000		880,000		880,000
10% Convertible preferred stock, stated value					$ 10.00		$ 10.00
10% Convertible preferred stock, dividend rate							10.00%
Preferred stock redemption period							3 years
Period of consecutive trading days during which weighted average price of common stock should close at $4 or greater for conversion of preferred stock							60 days
Revenue					$ 1,796,222	$ 1,297,734	$ 4,092,795	$ 1,488,621	$ 10,000,000
10% Convertible preferred stock, conversion rate					$ 1.0		$ 1.0
Warrants expiration date					Dec. 31, 2015		Dec. 31, 2015
Warrant exercise price					1.0		1.0
Shares of stock called by warrants					3,800,000		3,800,000
10% Convertible preferred stock, issued				759,773
10% Convertible preferred stock, issuance price per share				$ 10
10% Convertible preferred stock, gross proceeds from issuance				7,597,730				6,769,389
10% Convertible preferred stock, unamortized discount				828,340	1,600,000		1,600,000
10% Convertible preferred stock, discount amortized period				3 years
Amortization of preferred stock discount							(68,346)	(69,028)
Common stock issued upon conversion Preferred Stock, shares	200,000	62,500			200,000		262,500
Preferred Stock shares converted		6,250			250,000
Common stock shares required to be issued if the remaining holders of Preferred Stock elect to convert					7,300,000		7,300,000
Dividends accrued on the Preferred Stock					176,773		348,524
Common stock shares issued as dividends on the 10% Convertible preferred stock	20,000	286,251	247,538		392,800
Redeemable Preferred Stock
Temporary Equity [Line Items]
Warrant exercise price					10		10
Shares of stock called by warrants					58,352		58,352
Fair value of 10% convertible preferred stock warrants					140,458		140,458
Change in fair value of the warrant liability					104,539		347,097
10% Convertible Preferred Stock
Temporary Equity [Line Items]
10% Convertible preferred stock, authorized			880,000		880,000		880,000		880,000
10% Convertible preferred stock, issued			752,273		726,023		726,023		752,273
Preferred Stock shares converted					20,000		26,250
Beneficial Conversion Feature
Temporary Equity [Line Items]
Amortization of preferred stock discount					$ 300,904		$ 474,680
Minimum
Temporary Equity [Line Items]
Minimum weighted average price of common stock for 60 consecutive trading days to convert preferred stock							$ 4.00

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Inventories

6 Months Ended

Jun. 30, 2012

Inventories

Note 3 – Inventories

Inventories are priced at the lower of cost or market and consist primarily of raw materials and finished products. No material adjustment has been made to the cost of finished products inventories as of June 30, 2012 and December 31, 2011.

	June 30, 2012		December 31, 2011
Finished products	$	2,152,193	$	1,032,798
Production materials		205,575		495,693
Total inventories	$	2,357,768	$	1,528,491

Since we engage third-party contract manufacturers to produce our finished products, and in certain situations we provide them the raw materials, our inventories at June 30, 2012 and December 31, 2011 are located at the third-party contract manufacturing locations. We carry adequate insurance for loss on this inventory.

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Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $)	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial liabilities	$ 140,458	$ 2,546,632
Conversion Options
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of derivative liability		113,271
Warrant
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of derivative liability		1,875,463
Bonus Warrants
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of derivative liability		70,343
Placement Agent | Warrant
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial liabilities	140,458	487,555
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial liabilities	140,458	2,546,632
Fair Value, Inputs, Level 3 | Conversion Options
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of derivative liability		113,271
Fair Value, Inputs, Level 3 | Warrant
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of derivative liability		1,875,463
Fair Value, Inputs, Level 3 | Bonus Warrants
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of derivative liability		70,343
Fair Value, Inputs, Level 3 | Placement Agent | Warrant
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial liabilities	$ 140,458	$ 487,555

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Stockholder's Equity (Tables)

6 Months Ended

Jun. 30, 2012

Warrant Activity

The following table sets forth our warrant activity during the period presented.

	Six Months Ended
	June 30, 2012
			Weighted-
	Number		Average
	of Shares		Exercise
	Issuable		Price
Outstanding – January 1, 2012		5,452,141	$	1.18
Granted during the period		3,928,040		0.98
Exercised during the period		-		-
Outstanding – June 30, 2012		9,380,181	$	1.10
Exercisable at end of period		9,164,181	$	1.10

Stock Option Activity

The following table summarizes our stock option activity for the period presented:

	Six Months Ended
	June 30,2012
			Weighted-
	Number		Average
	of Shares		Exercise
	Issuable		Price
Outstanding – January 1, 2012		5,886,261	$	1.11
Granted during the period		300,000		0.72
Exercised during the period		-		-
Cancelled during the period		-		-
Outstanding – June 30, 2012		6,186,261	$	1.10
Exercisable at June 30, 2012		3,734,703	$	1.05

Options Outstanding

The following table summarizes options outstanding at June 30, 2012:

	Number of Shares Issuable		Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)		Aggregate Intrinsic Value
Total shares issuable upon exercise		6,186,261	$	1.10		3.4	$	363,419
Options exercisable		3,734,703		1.05		3.1		106,229
Options not vested		2,451,558		1.19		3.8		257,190

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10% Convertible Redeemable Preferred Stock (Tables)

6 Months Ended

Jun. 30, 2012

Ten Percent Convertible Redeemable Preferred Stock

The components of our Preferred Stock are summarized as follows:

	June 30,			December 31,
	2012			2011
Redeemable preferred stock - face value	$	7,260,230		$	7,522,730
Accrued dividends		176,773			176,620
Unamortized discount		(1,636,068	)		(2,179,094	)
Redeemable preferred stock, net of discount	$	5,800,935		$	5,520,256

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Net Deferred Tax Assets and Liabilities (Detail) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Deferred tax assets:
Current
Non-current	6,640,000	5,160,000
Deferred Tax Assets, Gross, Total	6,640,000	5,160,000
Less valuation allowance	(6,640,000)	(5,160,000)
Net deferred income tax asset

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Reconciliation of Derivative Liability Used in Determining Fair Value (Detail) (USD $)	3 Months Ended		6 Months Ended			12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Conversion Options	Dec. 31, 2011 Conversion Options	Jun. 30, 2012 Warrant	Dec. 31, 2011 Warrant	Jun. 30, 2012 Bonus Warrants	Dec. 31, 2011 Bonus Warrants	Jun. 30, 2012 Placement Agent Warrant	Dec. 31, 2011 Placement Agent Warrant
Derivative [Line Items]
Beginning Balance					$ 113,271		$ 1,875,463		$ 70,343		$ 487,555
Fair value of derivative liability			347,097	(487,555)		118,663				797,185		487,555
Change in fair value	127,071		113,271		(113,271)	(5,392)		1,875,463	(13,309)	(492,111)	(347,097)
Credited to common stock upon issuance of warrants		1,900,000					(1,875,463)		(57,034)	(234,731)
Ending Balance						$ 113,271		$ 1,875,463		$ 70,343	$ 140,458	$ 487,555

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2012

Income Tax Expense Benefit

Income tax benefit attributable to loss before income taxes differed from the amounts computed by applying the United States of America federal tax rate of 40% to loss before income taxes as a result of the following:

	June 30,			December 31,
	2012			2011
Current:
Federal	$	-		$	-
State		-			-
		-			-
Increase in valuation allowance		(1,480,000	)		(1,260,000	)
Benefit of operating loss carry forward		1,480,000			1,260,000
Provision for income taxes, net	$	-		$	-

Schedule of Effective Income Tax Rate Reconciliation

	June 30,			December 31,
	2012			2011
Statutory federal income tax rate		40.0	%		40.0	%
Increase in valuation allowance		(40.0	)%		(40.0	)%
Effective tax rate		0.0	%		0.0	%

Net Deferred Tax Assets And Liabilities

The net deferred tax assets and liabilities are comprised of the following:

	June 30,			December 31,
	2012			2011
Deferred tax assets:
Current	$	-		$	-
Non-current		6,640,000			5,160,000
		6,640,000			5,160,000
Less valuation allowance		(6,640,000	)		(5,160,000	)
Net deferred income tax asset	$	-		$	-

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended						6 Months Ended
	Jun. 30, 2012 Entity	Jun. 30, 2011	Jun. 30, 2012 Entity	Jun. 30, 2011	Dec. 31, 2011	Apr. 30, 2011	Jun. 30, 2012 Bank One	Dec. 31, 2011 Redeemable Common Stock	Jun. 30, 2012 Minimum	Jun. 30, 2012 Maximum	Mar. 20, 2008 Analytic Survey, Inc.
Summary Of Significant Accounting Policies [Line Items]
Percentage of issued and outstanding common stock acquired at merger											90.70%
Property and equipment, estimated useful lives									2 years	20 years
Depreciation expense	$ 38,947	$ 29,620	$ 73,191	$ 69,704
Reserved for doubtful receivables	100,415
Allowance for doubtful accounts	133,146		133,146		32,731
Potential common shares issuable			23,400,000
Number of banks where cash is maintained	2		2
Cash, insured limit							250,000
Cash in bank							2,100,000
Accounts receivable	1,000,000		1,000,000
Temporary Equity, issued						759,773		250,000
Working capital	1,900,000		1,900,000
Stockholders' deficit	(5,916,083)		(5,916,083)		(5,235,863)
Accumulated losses	$ (32,785,857)		$ (32,785,857)		$ (29,645,934)

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Restatements

6 Months Ended

Jun. 30, 2012

Restatements

Note 2 – Restatements

Current Report on Form 8-K, Dated May 14, 2011

On May 14, 2011, we filed with the Securities and Exchange Commission (“SEC”) a Current Report on Form 8-K, to report our determination that our consolidated financial statements for the year ended December 31, 2011, included in our Annual Report on Form 10-K filed with the SEC on March 6, 2012 (the “2011 Form 10-K”), and the interim unaudited condensed consolidated financial statements included in our September 30, 2011 Quarterly Report on Form 10-Q filed with the SEC on November 14, 2011 (the “September 30, 2011 Form 10-Q”) should not be relied upon because we failed (i) to initially record and subsequently fair value our derivative warrant liabilities in connection with the issuances of our 10% Convertible Preferred Stock (the “Preferred Stock”) on March 22, 2011, April 1, 2011, April 13, 2011 and April 21, 2011 and (ii) to recalculate the fair value of the beneficial conversion feature embedded in the Preferred Stock upon determination that the conversion price of the Preferred Stock was required to be reset. We determined that the historical consolidated financial statements for the year ended December 31, 2011 included in our 2011 Form 10-K and the interim unaudited condensed consolidated financial statements for the period ended September 30, 2011, included in our September 30, 2011 10-Q required restatement (i) to record the change in fair value of our derivative warrant liability and (ii) to recalculate the fair value of the beneficial conversion feature and the amortization thereon in our Consolidated Statement of Stockholder Deficit.

On May 21, 2012, we filed our Form 10-K/A for the year ended December 31, 2011 and Form 10-Q/A for the period ended September 30, 2011 restating our financial statements and other disclosures where necessary, to properly account for these issues.

Current Report on Form 8-K Dated August 15, 2012

On August 15, 2012, we filed with the Securities and Exchange Commission (“SEC”) a Current Report on Form 8-K, to report our determination that our consolidated financial statements for the interim periods ended March 31, 2011, June 30, 2011, September 30, 2011, the year ended December 31, 2011, and the interim period ended March 31, 2012, should not be relied upon because in connection with the terms of the amendment of our 10% convertible debentures (the “Debentures”) on January 14, 2011 we failed (i) to initially record and subsequently fair value our derivative liabilities for the bonus warrants and (ii) to properly account for the loss on extinguishment of the Debentures upon amendment. We determined that the historical consolidated financial statements for the interim periods ended March 31, 2011, June 30, 2011, September 30, 2011, for the year ended December 31, 2011 and for the interim period ended March 31, 2012 require restatement (i) to record the initial fair value upon amendment and the subsequent change in fair value of our derivative bonus warrant liability and (ii) to properly account for the loss on extinguishment of the Debentures upon amendment.

Our 10% convertible debentures (the “Debentures”) were issued under purchase agreements during the fiscal year ended September 30, 2009, together with warrants, for aggregate proceeds of $600,000. The total of the fair value of the warrants, as determined using the Black-Scholes pricing model, and the value of the beneficial conversion features contained in the debentures, representing the difference between the fair value of common stock issuable upon conversion at the date of purchase and the amount of proceeds allocated to the note, exceeded the proceeds received.  Accordingly, we recorded a discount on the debentures equal to the principal amount of the debentures.  This recorded discount on these debentures was amortized to interest expense on the interest method through their originally scheduled maturity dates in February and March 2011.

Effective January 14, 2011, the holders of our Debentures, agreed to extend the maturity dates to June 30, 2012 and to the elimination of the prohibition of paying dividends or distributions on any of our equity securities. We agreed to amend the interest rate to 15% if paid in cash and to 18% (from 12%) if paid with shares of our common stock at the rate of one share of common stock for each $0.60 (from $0.90) of interest. We also agreed to reduce the conversion price, as defined, to $0.60, from $0.90 and to amend the volume weighted average trading price at which we could force conversion to $2.50 from $2.00. In addition, for each calendar month after February or March 2011 that these debentures remained outstanding, we agreed to issue a bonus warrant exercisable for three years for a number of shares of our common stock equal to the 5% of the outstanding principal, divided by $0.90. These bonus warrants are exercisable at $0.90 per share.

Even though these modifications to our Debentures resulted in less than a ten percent difference in the present value of cash flows between the original terms and the modified terms, the fair value of the conversion options was substantially greater than ten percent. We have therefore, accounted for the modification of these Debentures as an extinguishment of the original debt and the establishment of new debt. The difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt was $1.4 million and was recognized as a loss in our statement of operations during the three months ended March 31, 2011, the period of amendment.

In addition, since it was probable that we would issue the bonus warrants which were part of the reacquisition costs of the new debt, at each month-end through the amended maturity date, we calculated the fair value of the bonus warrants using the Black-Scholes pricing model and recorded a derivative liability of approximately $797,000 on the date of amendment and recognized the amount as a loss in our statement of operations during the three months ended March 31, 2011, the period of amendment. The bonus warrant derivative liability does not qualify as a fair value or cash flow hedge under ASC 815, accordingly, changes in the fair value of the derivative liability are immediately recognized in earnings and classified as a gain or loss on the derivative liability in the accompanying statements of operations. (See Note 7.)

This Quarterly Report on Form 10-Q for the three and six months ended June 30, 2012 incorporates corrections made in response to the accounting errors described above by restating our consolidated balance sheet as of December 31, 2011 and our consolidated financial statements presented herein for the comparative periods of June 30, 2011. We anticipate filing our Form 10-Q/A for the interim periods ended September 30, 2011 and March 31, 2012 and our Form 10-K/A #2 for the year ended December 31, 2011, as soon as is practical. 

The following tables show the effects of the restatement on our consolidated balance sheet as of December 31, 2011 and consolidated statements of operations and cash flows for the three and six months ended June 30, 2011:

Effect on Consolidated Balance Sheet
December 31, 2011
	As Previously
	Reported on
	Form 10-K/A			Adjusments			Restated
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	1,175,462					$	1,175,462
Accrued liabilities		359,715						359,715
Convertible revolving credit facility, net of discounts		160,794						160,794
Derivative liability - conversion option		113,271						113,271
Derivative liability - warrants		1,875,463						1,875,463
Derivative liability - bonus warrants		-			797,185	(e)		70,343
					(492,111	)  (f)
					(234,731	)  (g)
Convertible debt		566,785			600,000	(a)		772,500
					(394,285	)  (b)
Total current liabilities		4,251,490			276,058			4,527,548
Convertible debt, net of discount		-						-
Fair value of 10% convertible preferred stock warrants		487,555						487,555
Total liabilities		4,739,045			276,058			5,015,103
Commitments and contingencies
10% Convertible preferred stock, no par value; authorized 880,000 shares;  752,273 issued and outstanding at December 31, 2011, net of discount		5,520,256						5,520,256
Redeemable common stock, no par value; 250,000 shares issued and outstanding at December 31, 2011		242,500						242,500
Stockholders' deficit:
Common stock, no par value; authorized, 100,000,000 shares;  25,007,261 and 23,305,704 shares issued and outstanding  at December 31, 2011 and 2010, respectively		23,660,071			1,350,000	(d)		24,410,071
					(600,000	)  (a)
					(234,731	)  (h)
					234,731	(g)
Accumulated deficit		(28,619,876	)		(1,350,000	)  (d)		(29,645,934	)
					394,285	(b)
					(797,185	)  (e)
					492,111	(f)
					234,731	(h)
Total stockholders' deficit		(4,959,805	)		(276,058	)		(5,235,863	)
Total liabilities and stockholders' deficit	$	5,541,996		$	-		$	5,541,996

 (a) - to reverse the improper recording of debt discount.

 (b) - to reverse the improper recording of and amortization of debt discount.

 (c) - to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

 (d) - to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

 (e) - to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

 (f) - to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the six months ended June 30, 2011.

 (g) - to record the fair value of bonus warrants at date of issuance.

 (h) - to reverse incorrect recording of the fair value of bonus warrants at issuance.

Effect on Consolidated Statement of Operations

for the Three Months Ended June 30, 2011

	As Previously
	Reported			Adjustments			Restated
Loss from operations	$	(2,412,954	)	$	-		$	(2,412,954	)
Other expenses:
Interest expense		67,024			-			67,024
Amortization of debt discounts		465,909			(102,858	)(a)		249,002
					(114,049	)(b)
Change in fair value of derivative liabilities		-			(48,187	)(c)		(48,187	)
Total other expenses		532,933			(265,094	)		267,839
Loss before provision for income taxes		(2,945,887	)		265,094			(2,680,793	)
Provision for income taxes		-			-			-
Net loss		(2,945,887	)		265,094			(2,680,793	)
Accretion of preferred dividends and beneficial conversion feature		(203,697	)		-			(203,697	)
Net loss attributable to common shareholders	$	(3,149,584	)	$	265,094		$	(2,884,490	)
Weighted average common shares - basic and diluted		24,082,234			24,082,234			24,082,234
Basic and diluted net loss per share	$	(0.13	)	$	0.01		$	(0.12	)

(a) -  to reverse the improper amortization of debt discount.

(b) -  to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

(c) -  to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the period.

for the Six Months Ended June 30, 2011

	As Previously
	Reported			Adjustments			Restated
Loss from operations	$	(4,108,625	)	$	-		$	(4,108,625	)
Other expenses:
Interest expense		97,104			-			97,104
Amortization of debt discounts		670,049			(188,572	)(a)		367,428
					(114,049	)(b)
Loss on debt extinguishment		-			1,350,000	(c)		1,350,000
Fair value of bonus warrants at debt extinguishment		-			797,185	(d)		797,185
Change in fair value of derivative liabilities		-			(359,561	)(e)		(359,561	)
Total other expenses		767,153			1,485,003			2,252,156
Loss before provision for income taxes		(4,875,778	)		(1,485,003	)		(6,360,781	)
Provision for income taxes		-			-			-
Net loss		(4,875,778	)		(1,485,003	)		(6,360,781	)
Accretion of preferred dividends and beneficial conversion feature		(207,556	)		-			(207,556	)
Net loss attributable to common shareholders	$	(5,083,334	)	$	(1,485,003	)	$	(6,568,337	)
Weighted average common shares - basic and diluted		23,773,725			23,773,725			23,773,725
Basic and diluted net loss per share	$	(0.21	)	$	(0.06	)	$	(0.28	)

(a) -  to reverse the improper amortization of debt discount.

(b) -  to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

(c) -  to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

(d) -  to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

(e) -  to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the six months ended June 30, 2011.

Effect on Consolidated Statement of Cash Flows

for the Six Months Ended June 30, 2011

	As Previously
	Reported			Adjustments			Restated
Cash flow from operating activities:
Net loss	$	(4,875,778	)	$	(1,485,003	)	$	(6,360,781	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of convertible debt discount		486,972			(188,572	)(a)		298,400
Loss on debt extinguishment		-			1,350,000	(c)		1,350,000
Fair value of bonus warrants at debt extinguishment		-			797,185	(d)		797,185
Fair value of bonus warrants at grant date		-			(114,049	)(b)		(114,049	)
Change in fair value of derivative liabilities - Bonus Warrants		-			(359,561	)(e)		(359,561	)
Net cash used in operating activities	$	(3,435,727	)	$	-		$	(3,435,727	)

(a) -  to reverse the improper amortization of debt discount.

(b) -  to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

(c) -  to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

(d) -  to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

(e) -  to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the six months ended June 30, 2011.

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Property and Equipment (Detail) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Equipment	$ 13,754	$ 13,754
Machinery and equipment	2,400,620	1,618,701
Purchased software	123,551	56,404
Furniture and fixtures	13,090	14,040
Property, Plant and Equipment, Gross, Total	2,551,015	1,702,899
Less accumulated depreciation	(728,954)	(655,763)
Net property and leasehold improvements	$ 1,822,061	$ 1,047,136

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Demand Promissory Notes - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Short-term Debt [Line Items]
Demand promissory notes, interest rate per annum	8.00%		8.00%
Interest expense	$ 95,575	$ 67,024	$ 133,549	$ 97,104
Demand Notes
Short-term Debt [Line Items]
Interest expense	67,408
Demand Promissory Notes
Short-term Debt [Line Items]
Demand promissory notes, aggregate principal amount	$ 5,000,001		$ 5,000,001
Demand promissory notes, interest rate per annum	8.00%		8.00%

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Income Taxes [Line Items]
Statutory federal income tax rate	40.00%	40.00%
Net operating loss carry forward	$ 16.6

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 2,353,513	$ 1,982,772
Accounts receivable, net of allowance	848,713	701,155
Inventories	2,357,768	1,528,491
Prepaid expenses and deposits	235,026	203,445
Total current assets	5,795,020	4,415,863
Property and equipment, net	1,822,061	1,047,136
Other long-term and intangible assets	68,284	78,997
Total assets	7,685,365	5,541,996
Current liabilities:
Accounts payable	2,171,366	1,175,462
Accrued liabilities	488,688	359,715
Demand promissory notes	5,000,001
Convertible revolving credit agreement, net of discounts		160,794
Convertible debt		772,500
Total current liabilities	7,660,055	4,527,548
Fair value of 10% convertible preferred stock warrants	140,458	487,555
Total liabilities	7,800,513	5,015,103
Commitments and contingencies
Stockholders' deficit:
Common stock, no par value; authorized, 100,000,000 shares; 26,188,550 and 25,007,261 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	26,869,774	24,410,071
Accumulated deficit	(32,785,857)	(29,645,934)
Total stockholders' deficit	(5,916,083)	(5,235,863)
Total liabilities and stockholders' deficit	7,685,365	5,541,996
Debt Conversion
Current liabilities:
Derivative liability		113,271
Warrant
Current liabilities:
Derivative liability		1,875,463
Bonus Warrants
Current liabilities:
Derivative liability		70,343
10% Convertible Preferred Stock
Current liabilities:
Temporary Equity	5,800,935	5,520,256
Redeemable Common Stock
Current liabilities:
Temporary Equity		$ 242,500

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Debt (Detail) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Convertible debt		$ 772,500
10% convertible note
Debt Instrument [Line Items]
Convertible debt, due date	2012-06
Convertible debt		600,000
8.75% convertible debenture
Debt Instrument [Line Items]
Convertible debt, due date	2012-01
Convertible debt		$ 172,500

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flow from operating activities:
Net loss	$ (3,139,923)	$ (6,360,781)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	73,191	69,704
Amortization of debt discount		298,400
Amortization of preferred stock discount	68,346	69,028
Loss on debt extinguishment		1,350,000
Change in fair value of 10% convertible preferred stock warrants	(347,097)	487,555
Change in fair value of derivative liability	126,579	359,561
Share-based compensation	497,039	2,318,507
Increase in allowance for doubtful accounts	100,415
Changes in operating assets and liability:
Accounts receivable	(247,973)	(1,104,457)
Inventories	(829,277)	(313,182)
Prepaid expenses and deposits	(20,868)	(633,498)
Accounts payable	995,904	(37,872)
Accrued liabilities	128,973	(16,755)
Net cash used in operating activities	(2,542,644)	(3,435,727)
Cash flows from investing activities:
Purchase of property and equipment	(848,116)	(97,250)
Net cash used in investing activities	(848,116)	(97,250)
Cash flows from financing activities:
Proceeds from issuance of demand promissory notes	5,000,001
Proceeds from issuance of 10% convertible preferred stock, net		6,769,389
Issuance of common stock, net of expenses		200
Proceeds from short term notes		100,758
Repayments of convertible debt	(772,500)
Repayment of revolving credit agreement	(466,000)
Repayment of short term notes		(32,970)
Net cash provided by financing activities	3,761,501	6,837,377
Net increase in cash	370,741	3,304,400
Cash and cash equivalents at beginning of period	1,982,772	785,612
Cash and cash equivalents at end of period	2,353,513	4,090,012
Supplemental disclosures of cash flow information:
Cash paid for interest	133,549	63,707
Conversion of 10% convertible preferred stock and debt	262,500	410,000
Dividends on 10% convertible preferred stock	348,524	176,245
Amortization of conversion feature of 10% convertible preferred stock	474,680	31,311
Redeemable common stock reclassified to permanent equity	242,500
Debt Conversion
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount		298,400
Revolving Credit Agreement
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	305,206
Conversion Options
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of derivative liability	(113,271)
Bonus Warrants
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of 10% convertible preferred stock warrants		797,185
Change in fair value of derivative liability	(13,309)	(359,561)
Supplemental disclosures of cash flow information:
Warrants issued	57,034	114,049
10% Convertible Preferred Stock
Supplemental disclosures of cash flow information:
Warrants issued	$ 1,875,463

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Related Party Transactions - Additional Information (Detail) (USD $)	1 Months Ended	6 Months Ended	12 Months Ended
	Nov. 30, 2004	Jun. 30, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Sale of composite rail ties to 3D Global Solutions Inc.		$ 102,200
Percentage of outstanding stock owned by Samuel G. Rose		5.00%
Revolving credit facility, maximum agreed amount of loan			2,000,000
Interest rate			12.00%
Revolving credit facility, original maturity date			Sep. 30, 2012
Shares of common stock issued for loan consideration	1,701,341
Registration Period			6 months
Determination of variable weighted average price of common stock, number of trading days			30 days
Stock redemption price			$ 0.90
Revolving credit facility, amount borrowed			466,000
Demand promissory notes, interest rate per annum		8.00%
Demand Promissory Notes
Related Party Transaction [Line Items]
Demand promissory notes, aggregate principal amount		5,000,001
Demand promissory notes, interest rate per annum		8.00%
Minimum
Related Party Transaction [Line Items]
Percentage of outstanding stock owned by Samuel G. Rose		5.00%
Mr. Rose | Demand Promissory Notes
Related Party Transaction [Line Items]
Interest rate		8.00%
Debt issued, principal amount		1,666,667
Mr. Lenkin
Related Party Transaction [Line Items]
Demand promissory notes, aggregate principal amount		$ 1,426,667
Restricted Stock
Related Party Transaction [Line Items]
Shares of common stock issued for loan consideration			250,000

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Effects of Restatement on Consolidated Balance Sheet (Parenthetical) (Detail) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Apr. 30, 2011
Temporary Equity, authorized	880,000	880,000
Temporary Equity, issued			759,773
Temporary Equity, outstanding	726,023	752,273
Common stock, no par value
Common stock, authorized	100,000,000	100,000,000
Common stock, shares issued	26,188,550	25,007,261
Common stock, shares outstanding	26,188,550	25,007,261
10% Convertible Preferred Stock
Temporary Equity, no par value
Temporary Equity, authorized	880,000	880,000
Temporary Equity, issued	726,023	752,273
Temporary Equity, outstanding	726,023	752,273
Redeemable Common Stock
Temporary Equity, no par value
Temporary Equity, issued		250,000
Temporary Equity, outstanding		250,000
As Previously Reported
Common stock, no par value
Common stock, authorized		100,000,000
Common stock, shares issued		25,007,261
Common stock, shares outstanding		23,305,704
As Previously Reported | 10% Convertible Preferred Stock
Temporary Equity, no par value
Temporary Equity, authorized		880,000
Temporary Equity, issued		752,273
Temporary Equity, outstanding		752,273
As Previously Reported | Redeemable Common Stock
Temporary Equity, no par value
Temporary Equity, issued		250,000
Temporary Equity, outstanding		250,000

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Property and Equipment

Our property and equipment is comprised of the following:

	June 30, 2012			December 31, 2011
Property, equipment, and leasehold improvements, at cost:
Equipment	$	13,754		$	13,754
Machinery and equipment		2,400,620			1,618,701
Purchased software		123,551			56,404
Furniture and fixtures		13,090			14,040
		2,551,015			1,702,899
Less accumulated depreciation		(728,954	)		(655,763	)
Net property and leasehold improvements	$	1,822,061		$	1,047,136

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Effects of Restatement on Consolidated Statements of Operations (Detail) (USD $)	3 Months Ended			6 Months Ended			12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011		Jun. 30, 2012	Jun. 30, 2011		Dec. 31, 2011
Loss from operations	$ (1,560,881)	$ (2,412,954)		$ (2,759,400)	$ (4,108,625)
Other expenses:
Interest expense	95,575	67,024		133,549	97,104
Amortization of debt discounts		249,002			367,428
Fair value of bonus warrants at grant date					(114,049)
Loss on debt extinguishment					1,350,000
Fair value of bonus warrants at debt extinguishment					797,185
Change in fair value of derivative liabilities	(129,574)	(48,187)		(126,579)	(359,561)
Total other expenses	169,472	267,839		380,523	2,252,156
Loss before provision for income taxes	(1,730,353)	(2,680,793)		(3,139,923)	(6,360,781)
Provision for income taxes
Net loss	(1,730,353)	(2,680,793)		(3,139,923)	(6,360,781)
Accretion of preferred dividends and beneficial conversion feature	(477,678)	(203,697)		(823,204)	(207,556)
Net loss attributable to common shareholders	(2,208,031)	(2,884,490)		(3,963,127)	(6,568,337)
Weighted average common shares - basic and diluted	26,070,061	24,082,234		25,850,191	23,773,725
Basic and diluted net loss per share	$ (0.08)	$ (0.12)		$ (0.15)	$ (0.28)
As Previously Reported
Loss from operations		(2,412,954)			(4,108,625)
Other expenses:
Interest expense		67,024			97,104
Amortization of debt discounts		465,909			670,049
Total other expenses		532,933			767,153
Loss before provision for income taxes		(2,945,887)			(4,875,778)
Provision for income taxes
Net loss		(2,945,887)			(4,875,778)
Accretion of preferred dividends and beneficial conversion feature		(203,697)			(207,556)
Net loss attributable to common shareholders		(3,149,584)			(5,083,334)
Weighted average common shares - basic and diluted		24,082,234			23,773,725
Basic and diluted net loss per share		$ (0.13)			$ (0.21)
Adjustments
Other expenses:
Amortization of debt discounts					(188,572)	[1]
Fair value of bonus warrants at grant date					(114,049)	[2]
Loss on debt extinguishment					1,350,000	[3]
Fair value of bonus warrants at debt extinguishment					797,185	[4]
Change in fair value of derivative liabilities		(48,187)	[5]		(359,561)	[6]
Total other expenses		(265,094)			1,485,003
Loss before provision for income taxes		265,094			(1,485,003)
Provision for income taxes
Net loss		265,094			(1,485,003)
Net loss attributable to common shareholders		265,094			(1,485,003)
Weighted average common shares - basic and diluted		24,082,234			23,773,725
Basic and diluted net loss per share		$ 0.01			$ (0.06)
Adjustments | Amortization Of Debt Discounts Reversal
Other expenses:
Amortization of debt discounts		102,858	[1]
Adjustments | Amortization Of Debt Discounts Reversal Of Fair Value Of Bonus Warrants
Other expenses:
Amortization of debt discounts		$ 114,049	[2]

[1] to reverse the improper amortization of debt discount.

[2] to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

[3] to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

[4] to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

[5] to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the period.

[6] to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the six months ended June 30, 2011.

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Inventories (Tables)

6 Months Ended

Jun. 30, 2012

Inventories

	June 30, 2012		December 31, 2011
Finished products	$	2,152,193	$	1,032,798
Production materials		205,575		495,693
Total inventories	$	2,357,768	$	1,528,491

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies

Note 1 - Summary of Significant Accounting Policies

(a)         Business and Basis of Financial Statement Presentation

Our predecessor company was formed in 1981 under the name Analytic Surveys, Inc. On March 20, 2008, Analytic Surveys, Inc. consummated an Agreement and Plan of Merger (or the Merger) with Axion International, Inc. In the Merger, the stockholders of Axion International, Inc. succeeded to approximately 90.7% of Analytic Survey, Inc.’s issued and outstanding common stock and Analytics Survey changed its name to Axion International Holdings, Inc. The Merger has been accounted for as a reverse merger in the form of a recapitalization with Axion as the successor.

We develop, manufacture, market and sell composite rail ties and structural building products, such as pilings, I-beams, T-beams and boards, which, based upon patented technology developed at Rutgers University, are fully derived from common recycled plastics and high-density polymers, such as polyethylene, polystyrene and polypropylene. These recycled plastics, which are combined with recycled plastic composites containing encapsulated fiberglass, achieve structural thickness and strength and are resistant to changing shape under constant stress. Our products, manufactured through an extrusion process, are eco-friendly, non-corrosive, moisture impervious, non-chemical leaching and insect and rot resistant. Our products possess superior lifecycles and generally have greater durability and require less maintenance than competitive products made from wood, steel or concrete. We market our products in two lines, the first being ECOTRAX™, our line of rail ties, and the second being STRUXURE™, our line of structural building products.

Our consolidated financial statements include the accounts of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with Rule S-X of the Securities and Exchange Commission and with the instructions to Form 10-Q, and accordingly, they do not include all of the information and footnotes which may be required by generally accepted accounting principles for complete financial statements.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. However, the results from operations for the six months ended June 30, 2012, are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated December 31, 2011 financial statements and footnotes thereto included in the Company's Form 10-K/A filed with the SEC.

(b)         Cash and Cash Equivalents

For purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

(c)         Property and Equipment

Property and equipment are recorded at cost and are depreciated and amortized using the straight-line method over estimated useful lives of two to twenty years.  Costs incurred that extend the useful life of the underlying asset are capitalized and depreciated over the remaining useful life. Repairs and maintenance are charged directly to operations as incurred.

Our property and equipment is comprised of the following:

	June 30, 2012			December 31, 2011
Property, equipment, and leasehold improvements, at cost:
Equipment	$	13,754		$	13,754
Machinery and equipment		2,400,620			1,618,701
Purchased software		123,551			56,404
Furniture and fixtures		13,090			14,040
		2,551,015			1,702,899
Less accumulated depreciation		(728,954	)		(655,763	)
Net property and leasehold improvements	$	1,822,061		$	1,047,136

Depreciation expense included as a charge to costs of sales and general and administrative expenses for the three months ended June 30, 2012 and 2011 was $38,947 and $29,620, respectively and for the six months ended June 30, 2012 and 2011 was $73,191 and $69,704, respectively.

(d)         Allowance for Doubtful Accounts

We accrue a reserve on a receivable when, based upon the judgment of management, it is probable that a receivable will not be collected and the amount of any reserve may be reasonably estimated.  During the three months ended June 30, 2012, we reserved $100,415 for receivables we determined we may not collect in full. As of June 30, 2012 and December 31, 2011, we provided an allowance of $133,146 and $32,731, respectively for doubtful accounts.

(e)        Revenue and Cost Recognition

In accordance with FASB ASC 605 “Revenue Recognition”, revenue is recognized when persuasive evidence of an agreement with the customer exists, products are shipped or title passes pursuant to the terms of the agreement with the customer, the amount due from the customer is fixed or determinable, collectability is reasonably assured, and there are no significant future performance obligations.

We recognize revenue when a fixed commitment to purchase the products is received, title or ownership has passed to the customer and we do not have any specific performance obligations remaining, such that the earnings process is complete. In most cases, we receive a purchase order from our customer specifying the products requested and delivery instructions. We recognize revenue upon our delivery of the products as specified in the purchase order.

In other cases where we have a contract which provides for a large number of products and few actual deliveries, the revenues are recorded each month as the products are produced and the risk of ownership passes to the customer upon pre-delivery acceptance. Prior to deliveries, our customer’s products are segregated from our inventory and not available for fulfilling other orders.

Under our third-party contract manufacturing arrangements, our costs of sales are predominately comprised of the cost of raw materials and the costs and expenses associated with the third-party manufacturer producing the finished product. Under one arrangement, we purchase and supply the raw materials to the third-party manufacturer who we pay a per-pound cost to produce the finished product. Under our other arrangement the third-party manufacturer sources and pays for the raw materials and we purchase the finished product from them at a cost per unit. In addition, for that arrangement, we are responsible for any costs of raw materials purchased by the third-party manufacturer in excess of the arrangement’s reference prices and we share any savings for purchases below the reference prices.  Our costs of sales may vary significantly as a result of the variability in the cost of our raw materials and the efficiency with which we plan and execute our manufacturing processes.

Historically, we have not had significant warranty replacements, and do not believe we will in the future.

(f)          Income Taxes

We use the asset and liability method of accounting of income taxes pursuant to the provisions of FASB ASC 740 “Income Taxes”, which establishes deferred tax assets and liabilities to be recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

(g)         Impairment of Long-Lived Assets Other Than Goodwill

We assess the potential for impairment in the carrying values of our long-term assets whenever events or changes in circumstances indicate such impairment may have occurred.  An impairment charge to current operations is recognized when the estimated undiscounted future net cash flows of the asset are less than its carrying value. Any such impairment is recognized based on the differences in the carrying value and estimated fair value of the impaired asset.

(h)         Derivative Instruments

For derivative instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in fair value recognized in earnings each reporting period. We use the Black-Scholes model to value the derivative instruments at inception and subsequent valuation dates and the value is re-assessed at the end of each reporting period, in accordance with FASB ASC Topic 815, “Derivatives and Hedging”. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not the net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date.

(i)          Share-Based Compensation

We record share-based compensation for transactions in which we exchange our equity instruments for services of employees, consultants and others based on the fair value of the equity instruments issued at the date of grant or other measurement date.  The fair value of common stock awards is based on the observed market value of our stock.  We calculate the fair value of options and warrants using the Black-Scholes option pricing model.  Expense is recognized, net of expected forfeitures, over the period of performance.  When the vesting of an award is subject to performance conditions, no expense is recognized until achievement of the performance condition is deemed to be probable. Options issued to consultants are remeasured as they vest each reporting period and the resulting value is recognized as an adjustment against our net loss over the period during which the services are received.

(j)         Earnings (Loss) Per Share

Basic earnings (loss) per share are computed by dividing earnings (loss) available to common shareholders by the weighted average number of common shares outstanding for the period.  Diluted earnings (loss) per share include the effects of the potential dilution of outstanding options, warrants, and convertible debt on our common stock as determined using the treasury stock method. For the three and six months ended June 30, 2012 and 2011, there were no dilutive effects of such securities because we incurred a net loss in each period.  As of June 30, 2012, we have approximately 23.4 million potential common shares issuable under our convertible instruments, warrant and stock option agreements.

(k)         Fair Value of Financial Instruments

Fair value is defined as an exit price, which is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date.  The degree of judgment utilized in measuring the fair value of assets and liabilities generally correlates to the level of pricing observability.  Financial assets and liabilities with readily available, actively quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and require less judgment in measuring fair value.  Conversely, financial assets and liabilities that are rarely traded or not quoted have less price observability and are generally measured at fair value using valuation models that require more judgment.  These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency of the asset, liability or market and the nature of the asset or liability.  We have categorized our financial assets and liabilities that are recurring at fair value into a three-level hierarchy in accordance with these provisions.

(l)          Concentration of Credit Risk

We maintain our cash within two major U.S. domestic banks. The amount held within one of these banks exceeds the insured limit of $250,000 from time to time and was approximately $2.1 million at June 30, 2012.  We have not incurred losses related to these deposits.  Our accounts receivable balance as of June 30, 2012 of approximately $1.0 million consists of amounts due from a limited number of customers.

(m)         Use of Estimates

The preparation of our financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates.

(n)         Redeemable Common Stock

We account for redeemable common stock in accordance with ASC 480-10-S99-3A “Classification and Measurement of Redeemable Securities,” which provides that securities that are redeemable for cash or other assets are classified outside of permanent equity if they are redeemable at the option of the holder. Accordingly, 250,000 shares of common stock issued during the year ended December 31, 2011, as a commitment fee pursuant to the revolving credit agreement were classified outside of permanent equity at redemption value, when issued. If circumstances would have indicated it was probable the holder may redeem these shares of common stock, we would have recognized changes in the redemption value in the period they occurred and adjusted the carrying value of the redeemable common stock to equal its redemption value at the end of that reporting period. During the three months ended June 30, 2012, the revolving credit agreement was terminated and the related redemption value of the shares of common stock was reclassified to permanent equity.

(o)       Going Concern

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplates our continuation as a going concern.  At June 30, 2012, we had a working capital deficit of $1.9 million, a stockholders’ deficit of $5.9 million and have accumulated losses to date of $32.8 million.  This raises substantial doubt about our ability to continue as a going concern.  In view of these matters, realization of certain of the assets in the accompanying balance sheet is dependent upon our ability to meet our financing requirements, raise additional capital, and the success of our business plan and future operations.  We continue to seek additional means of financing to fund our business plan, but there is no assurance that we will be successful in raising sufficient funds to assure our eventual profitability.  We believe that actions planned and presently being taken to revise our operating and financial requirements provide us the opportunity to continue as a going concern. The financial statements do not include any adjustments that might result from these uncertainties.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Apr. 30, 2011
Temporary Equity, authorized	880,000	880,000
Temporary Equity, issued			759,773
Temporary Equity, outstanding	726,023	752,273
Common stock, no par value
Common stock, authorized	100,000,000	100,000,000
Common stock, shares issued	26,188,550	25,007,261
Common stock, shares outstanding	26,188,550	25,007,261
10% Convertible Preferred Stock
Temporary Equity, no par value
Temporary Equity, authorized	880,000	880,000
Temporary Equity, issued	726,023	752,273
Temporary Equity, outstanding	726,023	752,273
Redeemable Common Stock
Temporary Equity, no par value
Temporary Equity, issued		250,000
Temporary Equity, outstanding		250,000

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Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

Note 11 - Income Taxes

Due to our substantial operating losses and the valuation allowance applied against our deferred tax assets, we have not recorded any income tax expense or benefit. Income tax benefit attributable to loss before income taxes differed from the amounts computed by applying the United States of America federal tax rate of 40% to loss before income taxes as a result of the following:

	June 30,			December 31,
	2012			2011
Current:
Federal	$	-		$	-
State		-			-
		-			-
Increase in valuation allowance		(1,480,000	)		(1,260,000	)
Benefit of operating loss carry forward		1,480,000			1,260,000
Provision for income taxes, net	$	-		$	-

	June 30,			December 31,
	2012			2011
Statutory federal income tax rate		40.0	%		40.0	%
Increase in valuation allowance		(40.0	)%		(40.0	)%
Effective tax rate		0.0	%		0.0	%

Deferred income taxes result from temporary differences in the recognition of income and expenses for the financial reporting purposes and for tax purposes. At June 30, 2012, we had available net operating loss carry forwards of approximately $16.6 million that expire through 2032. Our ability to utilize our net operating loss carry forwards is uncertain and thus a valuation allowance has been provided against our net deferred tax asset. Due to the changes in ownership over the prior periods from debt conversions, equity financings and the merger transaction, we may have triggered a Section 382 limitation on the utilization of such net operating loss carry forwards. In addition, we have not remained current with our federal and state tax returns. The net deferred tax assets and liabilities are comprised of the following:

	June 30,			December 31,
	2012			2011
Deferred tax assets:
Current	$	-		$	-
Non-current		6,640,000			5,160,000
		6,640,000			5,160,000
Less valuation allowance		(6,640,000	)		(5,160,000	)
Net deferred income tax asset	$	-		$	-

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 17, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Trading Symbol	AXIH
Entity Registrant Name	AXION INTERNATIONAL HOLDINGS, INC.
Entity Central Index Key	0000753048
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		26,781,378

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Business Concentration

6 Months Ended

Jun. 30, 2012

Business Concentration

Note 12 - Business Concentration

During the three and six months ended June 30, 2012, we sold our products to 13 and 22 customers, respectively with sales of our ECOTRAX rail ties to one customer representing approximately 47% and 63%, respectively of our total revenue.

Purchases of raw materials and contract manufacturing services and products from our two contract manufacturers were approximately 51% and 49% of our total purchases for the three and six months ended June 30, 2012, respectively.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenue	$ 1,796,222	$ 1,297,734	$ 4,092,795	$ 1,488,621
Costs of sales	1,756,119	1,204,872	4,041,569	1,480,261
Gross margin	40,103	92,862	51,226	8,360
Operating expenses:
Product development and quality management	328,363	93,242	563,842	166,637
Marketing and sales	248,290	4,614	387,062	63,675
General and administrative	1,024,331	2,407,960	1,859,722	3,886,673
Total operating costs and expenses	1,600,984	2,505,816	2,810,626	4,116,985
Loss from operations	(1,560,881)	(2,412,954)	(2,759,400)	(4,108,625)
Other expenses:
Interest expense	95,575	67,024	133,549	97,104
Amortization of debt discount	203,471	249,002	373,553	367,428
Loss on debt extinguishment				1,350,000
Fair value of bonus warrants at debt extinguishment				797,185
Change in fair value of derivative liabilities	(129,574)	(48,187)	(126,579)	(359,561)
Total other expenses	169,472	267,839	380,523	2,252,156
Loss before provision for income taxes	(1,730,353)	(2,680,793)	(3,139,923)	(6,360,781)
Provision for income taxes
Net loss	(1,730,353)	(2,680,793)	(3,139,923)	(6,360,781)
Accretion of preferred stock dividends and beneficial conversion feature	(477,678)	(203,697)	(823,204)	(207,556)
Net loss attributable to common shareholders	$ (2,208,031)	$ (2,884,490)	$ (3,963,127)	$ (6,568,337)
Weighted average common shares - basic and diluted	26,070,061	24,082,234	25,850,191	23,773,725
Basic and diluted net loss per share	$ (0.08)	$ (0.12)	$ (0.15)	$ (0.28)

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Convertible Revolving Credit Agreement

6 Months Ended

Jun. 30, 2012

Convertible Revolving Credit Agreement

Note 6 - Convertible Revolving Credit Agreement

During the year ended December 31, 2011, we entered into a convertible revolving credit agreement (the “Agreement”) with a private lender (“Lender”). Under the terms of the Agreement, Lender had agreed to lend us up to $2,000,000 on a revolving basis (the “Loan”). The Loan carried interest at 12% per annum on any outstanding principal amount. In consideration for the Loan, we issued to Lender 250,000 shares of our restricted common stock and initially accounted for this redeemable common stock outside of permanent equity at redemption value.

The fair value at issuance of the shares given as consideration and the fair value of the beneficial conversion feature were recorded as a discount to the outstanding Loan, and the discount was scheduled to be amortized over the contractual term of the Agreement through September 30, 2012. Since we repaid the outstanding principal and terminated the Agreement during the three months ended June 30, 2012, which was earlier then the scheduled maturity date, we amortized the remaining discounts during the period. During the three and six months ended June 30, 2012, we amortized $203,471 and $305,206 of the discount to other expenses in our statement of operations.

Upon termination of the Agreement, the 250,000 shares of common stock were reclassified to permanent equity.

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Demand Promissory Notes

6 Months Ended

Jun. 30, 2012

Demand Promissory Notes

Note 5 – Demand Promissory Notes

During the three months ended June 30, 2012 we entered into a Memorandum of Understanding (the “MOU”) with Melvin Lenkin, Samuel Rose and others (collectively the “Investors”). Pursuant to the MOU, we issued to the Investors demand promissory notes (collectively, the “Demand Notes”) in the aggregate principal amount of $5,000,001.  Interest accrues on the unpaid principal balance of the Demand Notes at a rate of 8.00% per annum. The principal balance of the Demand Notes, together with accrued and unpaid interest, is due and payable at any time after June 30, 2012 on demand.

For the three months ended June 30, 2012, we recognized $67,408 of interest expense in connection with the Demand Notes.

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Restatements (Tables)

6 Months Ended

Jun. 30, 2012

Effects of Restatement on Consolidated Financial Statements

The following tables show the effects of the restatement on our consolidated balance sheet as of December 31, 2011 and consolidated statements of operations and cash flows for the three and six months ended June 30, 2011:

Effect on Consolidated Balance Sheet
December 31, 2011
	As Previously
	Reported on
	Form 10-K/A			Adjusments			Restated
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	1,175,462					$	1,175,462
Accrued liabilities		359,715						359,715
Convertible revolving credit facility, net of discounts		160,794						160,794
Derivative liability - conversion option		113,271						113,271
Derivative liability - warrants		1,875,463						1,875,463
Derivative liability - bonus warrants		-			797,185	(e)		70,343
					(492,111	)  (f)
					(234,731	)  (g)
Convertible debt		566,785			600,000	(a)		772,500
					(394,285	)  (b)
Total current liabilities		4,251,490			276,058			4,527,548
Convertible debt, net of discount		-						-
Fair value of 10% convertible preferred stock warrants		487,555						487,555
Total liabilities		4,739,045			276,058			5,015,103
Commitments and contingencies
10% Convertible preferred stock, no par value; authorized 880,000 shares;  752,273 issued and outstanding at December 31, 2011, net of discount		5,520,256						5,520,256
Redeemable common stock, no par value; 250,000 shares issued and outstanding at December 31, 2011		242,500						242,500
Stockholders' deficit:
Common stock, no par value; authorized, 100,000,000 shares;  25,007,261 and 23,305,704 shares issued and outstanding  at December 31, 2011 and 2010, respectively		23,660,071			1,350,000	(d)		24,410,071
					(600,000	)  (a)
					(234,731	)  (h)
					234,731	(g)
Accumulated deficit		(28,619,876	)		(1,350,000	)  (d)		(29,645,934	)
					394,285	(b)
					(797,185	)  (e)
					492,111	(f)
					234,731	(h)
Total stockholders' deficit		(4,959,805	)		(276,058	)		(5,235,863	)
Total liabilities and stockholders' deficit	$	5,541,996		$	-		$	5,541,996

 (a) - to reverse the improper recording of debt discount.

 (b) - to reverse the improper recording of and amortization of debt discount.

 (c) - to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

 (d) - to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

 (e) - to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

 (f) - to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the six months ended June 30, 2011.

 (g) - to record the fair value of bonus warrants at date of issuance.

 (h) - to reverse incorrect recording of the fair value of bonus warrants at issuance.

Effect on Consolidated Statement of Operations

for the Three Months Ended June 30, 2011

	As Previously
	Reported			Adjustments			Restated
Loss from operations	$	(2,412,954	)	$	-		$	(2,412,954	)
Other expenses:
Interest expense		67,024			-			67,024
Amortization of debt discounts		465,909			(102,858	)(a)		249,002
					(114,049	)(b)
Change in fair value of derivative liabilities		-			(48,187	)(c)		(48,187	)
Total other expenses		532,933			(265,094	)		267,839
Loss before provision for income taxes		(2,945,887	)		265,094			(2,680,793	)
Provision for income taxes		-			-			-
Net loss		(2,945,887	)		265,094			(2,680,793	)
Accretion of preferred dividends and beneficial conversion feature		(203,697	)		-			(203,697	)
Net loss attributable to common shareholders	$	(3,149,584	)	$	265,094		$	(2,884,490	)
Weighted average common shares - basic and diluted		24,082,234			24,082,234			24,082,234
Basic and diluted net loss per share	$	(0.13	)	$	0.01		$	(0.12	)

(a) -  to reverse the improper amortization of debt discount.

(b) -  to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

(c) -  to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the period.

for the Six Months Ended June 30, 2011

	As Previously
	Reported			Adjustments			Restated
Loss from operations	$	(4,108,625	)	$	-		$	(4,108,625	)
Other expenses:
Interest expense		97,104			-			97,104
Amortization of debt discounts		670,049			(188,572	)(a)		367,428
					(114,049	)(b)
Loss on debt extinguishment		-			1,350,000	(c)		1,350,000
Fair value of bonus warrants at debt extinguishment		-			797,185	(d)		797,185
Change in fair value of derivative liabilities		-			(359,561	)(e)		(359,561	)
Total other expenses		767,153			1,485,003			2,252,156
Loss before provision for income taxes		(4,875,778	)		(1,485,003	)		(6,360,781	)
Provision for income taxes		-			-			-
Net loss		(4,875,778	)		(1,485,003	)		(6,360,781	)
Accretion of preferred dividends and beneficial conversion feature		(207,556	)		-			(207,556	)
Net loss attributable to common shareholders	$	(5,083,334	)	$	(1,485,003	)	$	(6,568,337	)
Weighted average common shares - basic and diluted		23,773,725			23,773,725			23,773,725
Basic and diluted net loss per share	$	(0.21	)	$	(0.06	)	$	(0.28	)

(a) -  to reverse the improper amortization of debt discount.

(b) -  to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

(c) -  to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

(d) -  to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

(e) -  to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the six months ended June 30, 2011.

Effect on Consolidated Statement of Cash Flows

for the Six Months Ended June 30, 2011

	As Previously
	Reported			Adjustments			Restated
Cash flow from operating activities:
Net loss	$	(4,875,778	)	$	(1,485,003	)	$	(6,360,781	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of convertible debt discount		486,972			(188,572	)(a)		298,400
Loss on debt extinguishment		-			1,350,000	(c)		1,350,000
Fair value of bonus warrants at debt extinguishment		-			797,185	(d)		797,185
Fair value of bonus warrants at grant date		-			(114,049	)(b)		(114,049	)
Change in fair value of derivative liabilities - Bonus Warrants		-			(359,561	)(e)		(359,561	)
Net cash used in operating activities	$	(3,435,727	)	$	-		$	(3,435,727	)

(a) -  to reverse the improper amortization of debt discount.

(b) -  to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

(c) -  to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

(d) -  to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

(e) -  to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the six months ended June 30, 2011.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies

Note 13 - Commitments and Contingencies

Operating leases

We lease office space in New Providence, New Jersey pursuant to a three-year lease agreement for office space which provides for initial monthly lease payments of approximately $3,400 with customary annual increases.  These premises serve as our corporate headquarters. The initial term of the lease expires on October 31, 2012 and the lease provides one renewal option for an additional three-year term.  Facility rent expense for this facility totaled approximately $11,300 and $22,600 for the three and six months ended June 30, 2012, respectively. Future minimum rental payments for the remainder of the initial lease term totals approximately $15,100.

Rutgers License

In February 2007, we acquired an exclusive, royalty-bearing license in specific but broad global territories to make, have made, use, sell, offer for sale, modify, develop, import, and export products made using patent applications owned by Rutgers University (Rutgers”).  We are using these patented technologies in the production of our composite rail ties and structural building products. The term of the License Agreement runs until the expiration of the last-to-expire issued patent within the Rutgers’ technologies licensed under the License Agreement, unless terminated earlier.

We are obligated to pay Rutgers royalties ranging from 1.5% to 3.0% on various product sales, subject to certain minimum payments each year and to reimburse Rutgers for certain patent defense costs in the case of patent infringement claims made against the Rutgers patents.  We also pay annual membership dues to Rutgers Center for Advanced Materials via Immiscible Polymer Processing, or AIMPP, a department of Rutgers.  The membership allows us to use AIMPP for basic research and development at no additional cost, with access to more comprehensive R&D services available to us for fees determined on a per-project basis.

Litigation

In April 2006, we commenced an action against Tonga Partners, L.P. (Tonga”), Cannell Capital, L.L.C. and J. Carlo Cannell in the United States District Court of New York, for disgorgement of short-swing profits pursuant to Section 16 of the Securities Exchange Act of 1934, as amended.  On November 10, 2004, Tonga converted a convertible promissory note into 1,701,341 shares of Common Stock, and thereafter, between November 10 and November 15, 2004, sold such shares for short-swing profits.  In September 2008, the District Court granted us summary judgment against Tonga for disgorgement of short-swing profits in the amount of $5.0 million.  The defendants appealed the order granting the summary judgment to the U.S. Court of Appeals for the 2^nd Circuit. The three judge panel held in our favor. The defendants have petitioned the Court for a full judge review. Their petition is currently pending.

From time to time, we are subject to various other routine litigation incidental to our business. We do not believe that any of these routine legal proceedings would have a material adverse effect on our financial condition or results of operations.

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10% Convertible Redeemable Preferred Stock

6 Months Ended

Jun. 30, 2012

10% Convertible Redeemable Preferred Stock

Note 9 - 10% Convertible Redeemable Preferred Stock

We designated 880,000 shares of preferred stock as 10% convertible redeemable preferred stock (the “Preferred Stock”). The Preferred Stock has a stated value (the “Stated Value”) of $10.00 per share. The Preferred Stock and any dividends thereon may be converted into shares of our common stock at any time by the holder at a conversion rate, as adjusted (the “Conversion Rate”). The holders of the Preferred Stock are entitled to receive dividends at the rate of ten percent (10%) per annum payable quarterly. Dividends shall not be declared, paid or set aside for any series or other class of stock ranking junior to the Preferred Stock, until all dividends have been paid in full on the Preferred Stock. The dividends on the Preferred Stock are payable, at our option, in cash, if permissible, or in additional shares of common stock. The Preferred Stock is not subject to any anti-dilution provisions other than for stock splits and stock dividends or other similar transactions. The holders of the Preferred Stock shall have the right to vote with our stockholders in any matter. The number of votes that may be cast by a holder of our Preferred Stock shall equal the Stated Value of the Preferred Stock purchased divided by the Conversion Rate. The Preferred Stock shall be redeemable for cash by the holder any time after the three (3) year anniversary from the initial purchase. The Preferred Stock may be converted by us, provided that the variable weighted average price of our common stock has closed at $4.00 per share or greater, for sixty (60) consecutive trading days and during such sixty (60) day period, the shares of common stock issuable upon conversion of the Preferred Stock have either been registered for resale or are issuable without restriction pursuant to Rule 144 of the Securities Act of 1933, as amended.

Pursuant to the terms of the Preferred Stock, since our net revenues for the twelve months ended December 31, 2011 were less than $10 million as reported in our audited financial statements, (i) the holders of our Preferred Stock received a warrant to purchase approximately 3.8 million shares of our common stock (the “Make Good Warrants”) and (ii) the Conversion Rate of the Preferred Stock was adjusted to $1.00, subject to adjustments for stock splits and stock dividends (the issuance of the Make Good Warrants and the adjustment to the Conversion Rate is referred to as the “Make Good Adjustment”). The Make Good Warrants are still outstanding at June 30, 2012, expire December 31, 2015 and have an initial exercise price of $1.00 per share and provide for cashless exercise at any time the underlying shares of common stock have not been registered for resale under the Securities Act of 1933 or are issuable without restriction pursuant to Rule 144 of the Securities Act.

During March and April 2011, we sold 759,773 shares of Preferred Stock at a price per share of $10, for gross proceeds of $7,597,730. We paid commissions, legal fees and other expenses of issuance of $828,340, which has been recorded as a discount and deducted from the face value of the Preferred Stock. At issuance of the Preferred Stock, we attributed a beneficial conversion feature to the Preferred Stock based upon the difference between the Conversion Rate at the time of issuance and the closing price of our common stock on the date of issuance, which was recorded as a discount and deducted from the face value of the Preferred Stock. Pursuant to the Make Good Adjustment of the Conversion Rate to $1.00, at December 31, 2011 the beneficial conversion feature was recalculated as if the $1.00 Conversion Rate was in affect at issuance, and the amortization of the related discount was adjusted for the year ended December 31, 2011. These discounts are amortized over three years consistent with the initial redemption terms, as a charge to additional paid-in capital, due to a deficit in retained earnings and during the three and six months ended June 30, 2012, we amortized $300,904 and $474,680, respectively to additional paid-in capital. At June 30, 2012, the unamortized Preferred Stock discount balance was $1.6 million.

During the three and six months ended June 30, 2012, we issued 200,000 and 262,500 shares of our common stock, respectively upon conversion of 20,000 and 26,250 shares of our Preferred Stock, respectively.

As of June 30, 2012, we may be required to issue 7.3 million shares of our common stock if the remaining holders of our Preferred Stock elect to convert.

Since the Preferred Stock may ultimately be redeemed at the option of the holder, the carrying value of the shares, net of unamortized discount and accumulated dividends, has been classified as temporary equity at June 30, 2012.

As of June 30, 2012 we accrued dividends on the Preferred Stock in the amount of $176,773. The accrued dividends were paid with approximately 392,800 shares of common stock, which were issued in lieu of cash. The common stock issued in payment of the accrued dividends as of June 30, 2012, were issued subsequent to June 30, 2012.

The components of our Preferred Stock are summarized as follows:

	June 30,			December 31,
	2012			2011
Redeemable preferred stock - face value	$	7,260,230		$	7,522,730
Accrued dividends		176,773			176,620
Unamortized discount		(1,636,068	)		(2,179,094	)
Redeemable preferred stock, net of discount	$	5,800,935		$	5,520,256

Placement Agent Warrants

We issued warrants to the placement agents for the sale of our 10% convertible preferred stock, to purchase 58,352 shares of 10% convertible preferred stock at $10 per share. Since the underlying 10% convertible preferred stock is redeemable by the holder after three years from the date of purchase, we recorded the fair value of the warrants at issuance, as a liability on our balance sheet and we re-value this warrant liability at each reporting date, with changes in fair value recognized in earnings each reporting period. The fair value of the warrant liability at June 30, 2012 was $140,458, and we recognized the change in fair value of the warrant liability during the three and six months ended June 30, 2012 of $104,539 and $347,097, respectively.

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Derivative Liabilities

6 Months Ended

Jun. 30, 2012

Derivative Liabilities

Note 7 - Derivative Liabilities

Conversion Option

The convertible revolving credit agreement, see Note 6 (the “Agreement”) entered into during the year ended December 31, 2011 met the definition of a hybrid instrument, as defined in ASC Topic 815 “Derivatives and Hedging”. The hybrid instrument was comprised of a (i) a debt instrument, as the host contract and (ii) an option to convert the debt outstanding under the revolving credit agreement into shares of our common stock, as an embedded derivative. The embedded derivative derives its value based on the underlying fair value of the shares of our common stock. The embedded derivative is not clearly and closely related to the underlying host debt instrument since the economic characteristics and risk associated with this derivative are based on the common stock fair value.

We determined the fair value of the embedded derivative and recorded it as a discount to the debt and a derivative liability on the date of issue. As disclosed in Note 5, the discount was amortized to other expenses over the initial term of the Agreement and the unamortized discount at repayment of principal of the Agreement was charged to our statement of operations during the three months ended June 30, 2012.

The embedded derivative did not qualify as a fair value or cash flow hedge under ASC 815. Accordingly, changes in the fair value of the embedded derivative were immediately recognized in earnings and classified as a gain or loss on the embedded derivative financial instrument in the accompanying statements of operations. For the three and six months ended June 30, 2012, we recognized a gain on the change in fair value of this derivative liability of $127,071 and $113,271, respectively.

Upon termination of the Agreement during the three months ended June 30, 2012, the fair value of the derivative liability of $127,071 was charged to our statement of operations.

Warrants

The 10% convertible preferred stock (see Note 9) issued during the year ended December 31, 2011 meets the definition of a hybrid instrument, as defined in ASC Topic 815 “Derivatives and Hedging” (”ASC 815”). The hybrid instrument is comprised of a (i) a preferred stock, as the host contract, (ii) a warrant to purchase shares of our common stock to be issued if a certain revenue milestone was not achieved (the “Make Good Warrant”), as an embedded derivative liability and (iii) an option to convert the preferred stock into shares of our common stock (the “Conversion Option”). Since, at issuance the number of shares of common stock which the Make Good Warrant would be exercisable into, was not known, ASC 815 requires the fair value of the Make Good Warrants be recorded as a derivative liability at issuance and any change in fair value be recognized in current earnings. The Conversion Option derives its value based on the underlying fair value of the shares of our common stock as does the Preferred Stock, and therefore is clearly and closely related to the underlying host contract.

The Make Good Warrant derivative liability does not qualify as a fair value or cash flow hedge under ASC 815. Accordingly, changes in the fair value of the derivative liability are immediately recognized in earnings and classified as a gain or loss on the derivative liability in the accompanying statements of operations. At the date of issuance in March and April 2011, we determined the fair value of the Make Good Warrant derivative to be insignificant and did not record a charge to Common Stock and a credit to the derivative liability. Subsequently in 2011, since it became probable that the revenue milestone would not be met, we recorded the derivative liability at fair value of $1.9 million. Since we did not achieve the revenue milestone for the year ended December 31, 2011, we were required to issue the Make Good Warrants, and accordingly once issued, the derivative liability associated with the Make Good Warrants was satisfied and the related derivative liability was reduced to zero. During the three months ended March 31, 2012, we credited Common Stock for the issuance of these warrants for the fair value of the derivative liability of approximately $1.9 million.

Bonus Warrants

Effective January 14, 2011, the holders of our Debentures, agreed to extend the maturity dates to June 30, 2012 and to the elimination of the prohibition of paying dividends or distributions on any of our equity securities. In addition to other amendments, we agreed that for each calendar month after the original maturity dates that these Debentures remained outstanding, we would issue a bonus warrant exercisable for three years for a number of shares of our common stock equal to the 5% of the outstanding principal, divided by $0.90. These bonus warrants are exercisable at $0.90 per share.

Since it was probable that we would issue the bonus warrants which were part of the reacquisition costs of the new debt, at each month-end through the amended maturity date, we calculated the fair value of the bonus warrants using the Black-Scholes pricing model and recorded a derivative liability of approximately $797,000 on the date of amendment and recognized the amount as a loss in our statement of operations during the three months ended March 31, 2011, the period of amendment. The bonus warrant derivative liability does not qualify as a fair value or cash flow hedge under ASC 815, accordingly, changes in the fair value of the derivative liability are immediately recognized in earnings and classified as a gain or loss on the derivative liability in the accompanying statements of operations. During the three and six months ended June 30, 2012, we recorded approximately $2,500 and $13,300, respectively of the gain in the fair value of the derivative liability. Upon issuance of the bonus warrants during the six months ended June 30, 2012 and year ended December 31, 2011, we credited additional paid-in capital for approximately $57,000, and $234,700, respectively.

Fair Value Measurements

We are required to disclose the fair value measurements required by Accounting for Fair Value Measurements. The derivative liability recorded at fair value in the balance sheet as of June 30, 2012 and December 31, 2011 is categorized based upon the level of judgment associated with the inputs used to measure its fair value. Hierarchical levels, defined by Accounting for Fair Value Measurements are directly related to the amount of subjectivity associated with the inputs to fair valuation of the liability is as follows:

Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable; and

Level 3 - Unobservable inputs, for which little or no market data exist, therefore requiring an entity to develop its own assumptions.

The following table summarizes the financial liabilities measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	As of June 30, 2012
	Level 1		Level 2		Level 3		Liabilities at Fair Value
Placement agent warrants		-		-		140,458		140,458
Total	$	-	$	-	$	140,458	$	140,458

	As of December 31, 2011 (Restated)
	Level 1		Level 2		Level 3		Liabilities at Fair Value
Derivative liability – conversion option	$	-	$	-	$	113,271	$	113,271
Derivative liability – warrants		-		-		1,875,463		1,875,463
Derivative liability – bonus warrants		-		-		70,343		70,343
Placement agent warrants		-		-		487,555		487,555
Total	$	-	$	-	$	2,546,632	$	2,546,632

The following tables are a reconciliation of the derivative liability for which Level 3 inputs were used in determining fair value:

	Conversion Option			Warrants			Bonus Warrants			Placement Agent Warrants
Beginning balance as of January 1, 2012	$	113,271		$	1,875,463		$	70,343		$	487,555
Change in fair value		(113,271	)		-			(13,309	)		(347,097	)
Credited to common stock upon issuance of warrants		-			(1,875,463	)		(57,034	)		-
Ending balance as of June 30, 2012	$	-		$	-		$	-		$	140,458

	Conversion Option			Warrants		Bonus Warrants			Placement Agent Warrants
Beginning balance as of January 1, 2011	$	-		$	-	$	-		$	-
Fair value of derivative liability		118,663			-		797,185			487,555
Change in fair value		(5,392	)		1,875,463		(492,111	)		-
Credited to common stock upon issuance of warrants		-			-		(234,731	)		-
Ending balance as of December 31, 2011	$	113,271		$	1,875,463	$	70,343		$	487,555

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Convertible Debt

6 Months Ended

Jun. 30, 2012

Convertible Debt

Note 8 - Convertible Debt

The components of debt are summarized as follows.

	Due	June 30, 2012		December 31, 2011 (Restated)
10% convertible debentures	June 2012	$	-	$	600,000
8.75% convertible debenture	January 2012		-		172,500
Total			-		772,500

10% Convertible Debentures

Our 10% convertible debentures (the “Debentures”) were issued under purchase agreements during the fiscal year ended September 30, 2009, together with warrants, for aggregate proceeds of $600,000. The total of the fair value of the warrants, as determined using the Black-Scholes pricing model, and the value of the beneficial conversion features contained in the debentures, representing the difference between the fair value of common stock issuable upon conversion at the date of purchase and the amount of proceeds allocated to the note, exceeded the proceeds received.  Accordingly, we recorded a discount on the Debentures equal to the principal amount of the Debentures.  This recorded discount on these Debentures was amortized to interest expense on the interest method through their originally scheduled maturity dates in February and March 2011.

Effective January 14, 2011, the holders of our Debentures, agreed to extend the maturity dates to June 30, 2012 and to the elimination of the prohibition of paying dividends or distributions on any of our equity securities. We agreed to amend the interest rate to 15% if paid in cash and to 18% (from 12%) if paid with shares of our common stock at the rate of one share of common stock for each $0.60 (from $0.90) of interest. We also agreed to reduce the conversion price, as defined, to $0.60, from $0.90 and to amend the volume weighted average trading price at which we could force conversion to $2.50 from $2.00. In addition, for each calendar month after February or March 2011 that these Debentures remained outstanding, we agreed to issue a bonus warrant exercisable for three years for a number of shares of our common stock equal to the 5% of the outstanding principal, divided by $0.90. These bonus warrants are exercisable at $0.90 per share.

Even though these modifications to our Debentures resulted in less than a ten percent difference in the present value of cash flows between the original terms and the modified terms, the fair value of the conversion options was substantially greater than ten percent. We have therefore, accounted for the modification of these Debentures as an extinguishment of the original debt and the establishment of new debt. The difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt was $1.4 million and was recognized as a loss in our statement of operations during the three months ended March 31, 2011, the period of amendment.

In addition, since it was probable that we would issue the bonus warrants which were part of the reacquisition costs of the new debt, at each month-end through the amended maturity date, we calculated the fair value of the bonus warrants using the Black-Scholes pricing model and recorded a derivative liability of approximately $797,000 on the date of amendment and recognized the amount as a loss in our statement of operations during the three months ended March 31, 2011, the period of amendment. The bonus warrant derivative liability does not qualify as a fair value or cash flow hedge under ASC 815, accordingly, changes in the fair value of the derivative liability are immediately recognized in earnings and classified as a gain or loss on the derivative liability in the accompanying statements of operations. (See Note 7.)

During the three and six months ended June 30, 2012, we recorded approximately $2,500 and $13,300, respectively of the gain in the fair value of the derivative liability.

The principal of $600,000 and accrued interest were repaid during the three months ended June 30, 2012, upon maturity.

8.75% Convertible Debenture

At maturity on January 31, 2012, we repaid the full principal plus accrued interest on our 8.75% convertible debenture.

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Stockholder's Equity

6 Months Ended

Jun. 30, 2012

Stockholder's Equity

Note 10 - Stockholder’s Equity

We are authorized to issue up to 100,000,000 shares of common stock, no par value, and up to 2,500,000 shares of preferred stock, no par value. There were 26,188,550 and 25,257,261 shares of common stock issued and outstanding at June 30, 2012 and December 31, 2011, respectively.  During the year ended December 31, 2011, we designated 880,000 shares of preferred stock as 10% convertible preferred stock and had outstanding 726,023 and 752,273 shares of 10% convertible preferred stock at June 30, 2012 and December 31, 2011, respectively. We may issue additional shares of preferred stock, with dividend requirements, voting rights, redemption prices, liquidation preferences and premiums, conversion rights and other terms without a vote of the shareholders.

As of June 30, 2012, we had outstanding options, warrants and other convertible securities that, when exercised or converted, could result in the issuance of up to approximately 23.4 million shares of common stock.

Common Stock Issuances for the Six Months Ended June 30, 2012

During January 2012, we issued 125,000 shares of common stock with a fair value on the date of issuance of $90,000, to a consultant pursuant to the terms of an agreement to provide services.

We paid the December 31, 2011 accrued dividend on our 10% convertible preferred stock with 247,538 shares of our common stock, with a fair value on the effective date of issuance of $176,620.

During March 2012, we issued 62,500 shares of common stock upon conversion of 6,250 shares of our 10% convertible preferred stock, with a value of $62,500.

We paid the March 31, 2012 accrued dividend on our 10% convertible preferred stock with 286,251 shares of our common stock, with a fair value on the effective date of issuance of $171,751.

Upon termination, and pursuant to an employment agreement, we issued 10,000 shares of our common stock during May 2012, to an employee, with a fair value on the date of issuance of $6,400.

During May 2012, we issued 200,000 shares of our common stock upon conversion of 20,000 shares of our 10% convertible preferred stock, with a value of $200,000.

Warrants - Common Stock

From time to time, we compensate consultants, advisors and investors with warrants to purchase shares of our common stock, in lieu of cash payments. Net share settlement is available to warrant holders. Such warrants are marked to market at each reporting period.

The following table sets forth our warrant activity during the period presented.

	Six Months Ended
	June 30, 2012
			Weighted-
	Number		Average
	of Shares		Exercise
	Issuable		Price
Outstanding – January 1, 2012		5,452,141	$	1.18
Granted during the period		3,928,040		0.98
Exercised during the period		-		-
Outstanding – June 30, 2012		9,380,181	$	1.10
Exercisable at end of period		9,164,181	$	1.10

For the warrants granted during the six months ended June 30, 2012, we estimated the fair value of each warrant at the grant date by using the Black-Scholes option pricing model with the following range of assumptions for the warrants granted during the three months ended June 30, 2012 - (i) no dividend yield, (ii) expected volatility of between 83% and 100%, (iii) risk-free interest rates of between 0.3% and 0.6%, and (iv) expected lives of approximately three years.

During the three and six months ended June 30, 2012, we issued warrants to purchase 100,005 and 166,675 shares of our common stock, respectively at a weighted average exercise price of $0.60 to the holders of our 10% convertible debentures pursuant to their amended terms. These warrants had a fair value of approximately $18,900 and $57,000, respectively at the date of grant which was charged to common stock upon issuance.

Of the warrants to purchase shares of our common stock granted during the six months ended June 30, 2012, we issued warrants to purchase 3,761,365 shares of our common stock at an exercise price of $1.00 to the holders of our 10% convertible preferred stock pursuant to the Make Good Adjustment. The warrants had a fair value at date of grant of $1,875,463 which was based on the Black-Scholes pricing model.

In addition, certain previously issued warrants are amortized over a service period spanning multiple reporting periods. During the three and six months ended June 30, 2012, we amortized $2,866 and $21,799, respectively of fair value of these previously granted warrants, to our statement of operations.

Warrants - 10% Convertible Preferred Stock

We issued warrants to the placement agents for the sale of our 10% convertible preferred stock, to purchase 58,352 shares of 10% convertible preferred stock at $10 per share. Since the underlying 10% convertible preferred stock is redeemable by the holder after three years from the date of purchase, we recorded the fair value of the warrants at issuance, as a liability on our balance sheet and we re-value the warrant liability at each reporting date, with any changes in fair value recognized in earnings each reporting period. The fair value of the warrant liability at June 30, 2012 was $140,458, and we recognized the change in fair value of the warrant liability during the three and six months ended June 30, 2012 of $104,539 and $347,097, respectively.

Options – Common Stock

We have two nonqualified stock option plans approved by shareholders with an aggregate of approximately 1.2 million shares remaining available for grant as of June 30, 2012.  The exercise price of the options are established by the Board of Directors on the date of grant and are generally equal to the market price of the stock on the grant date.  The Board of Directors may determine the vesting period for each new grant. Options issued are exercisable in whole or in part for a period as determined by the Board of Directors of up to ten years from the date of grant.

For the six months ended June 30, 2012, we estimated the fair value of each option award at the grant date by using the Black-Scholes option pricing model based on the following assumptions for the awards - (i) no dividend yield, (ii) expected volatility of 125%, (iii) risk-free interest rate of 0.8%, and (iv) expected life of five years. No options were awarded during the three months ended June 30, 2012.

In prior periods, we awarded options which provide the optionee with the right to exercise certain of these options based on the optionee’s achievement of specific performance conditions. During the three months ended June 30, 2012, we concluded that it was more probable then not, that certain of these performance condition options would be met at the end of an estimated service period. The fair value of the option is determined on the date the option was granted using the Black-Scholes option pricing model and amortized over the service period to operating expenses. During the three and six months ended June 30, 2012, we amortized $105,980 and $138,385, respectively of the fair values of these performance condition options to operating expenses.

In addition to options awarded during the three and six months ended June 30, 2012, options awarded in prior periods are being amortized over a service period encompassing multiple reporting periods. During the three and six months ended June 30, 2012, we recognized in operating expenses $45,537 and $240,457, respectively. Compensation expense to be recognized in periods subsequent to June 30, 2012 is approximately $71,800.

The following table summarizes our stock option activity for the period presented:

	Six Months Ended
	June 30,2012
			Weighted-
	Number		Average
	of Shares		Exercise
	Issuable		Price
Outstanding – January 1, 2012		5,886,261	$	1.11
Granted during the period		300,000		0.72
Exercised during the period		-		-
Cancelled during the period		-		-
Outstanding – June 30, 2012		6,186,261	$	1.10
Exercisable at June 30, 2012		3,734,703	$	1.05

The following table summarizes options outstanding at June 30, 2012:

	Number of Shares Issuable		Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)		Aggregate Intrinsic Value
Total shares issuable upon exercise		6,186,261	$	1.10		3.4	$	363,419
Options exercisable		3,734,703		1.05		3.1		106,229
Options not vested		2,451,558		1.19		3.8		257,190

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Effects of Restatement on Consolidated Balance Sheet (Detail) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Current liabilities:
Accounts payable	$ 2,171,366	$ 1,175,462
Accrued liabilities	488,688	359,715
Convertible revolving credit facility, net of discounts		160,794
Convertible debt		772,500
Total current liabilities	7,660,055	4,527,548
Convertible debt, net of discount
Fair value of 10% convertible preferred stock warrants	140,458	487,555
Total liabilities	7,800,513	5,015,103
Commitments and contingencies
Stockholders' deficit:
Common Stock Value	26,869,774	24,410,071
Accumulated deficit	(32,785,857)	(29,645,934)
Total stockholders' deficit	(5,916,083)	(5,235,863)
Total liabilities and stockholders' deficit	7,685,365	5,541,996
Debt Conversion
Current liabilities:
Derivative liability		113,271
Warrant
Current liabilities:
Derivative liability		1,875,463
Bonus Warrants
Current liabilities:
Derivative liability		70,343
10% Convertible Preferred Stock
Current liabilities:
Temporary Equity	5,800,935	5,520,256
Redeemable Common Stock
Current liabilities:
Temporary Equity		242,500
As Previously Reported
Current liabilities:
Accounts payable		1,175,462
Accrued liabilities		359,715
Convertible revolving credit facility, net of discounts		160,794
Convertible debt		566,785
Total current liabilities		4,251,490
Convertible debt, net of discount
Fair value of 10% convertible preferred stock warrants		487,555
Total liabilities		4,739,045
Commitments and contingencies
Stockholders' deficit:
Common Stock Value		23,660,071
Accumulated deficit		(28,619,876)
Total stockholders' deficit		(4,959,805)
Total liabilities and stockholders' deficit		5,541,996
As Previously Reported | Debt Conversion
Current liabilities:
Derivative liability		113,271
As Previously Reported | Warrant
Current liabilities:
Derivative liability		1,875,463
As Previously Reported | 10% Convertible Preferred Stock
Current liabilities:
Temporary Equity		5,520,256
As Previously Reported | Redeemable Common Stock
Current liabilities:
Temporary Equity		242,500
Adjustments
Current liabilities:
Total current liabilities		276,058
Convertible debt, net of discount
Total liabilities		276,058
Commitments and contingencies
Stockholders' deficit:
Total stockholders' deficit		(276,058)
Adjustments | Derivative Liability Adjustments For Fair Value As Of Amendment Date | Bonus Warrants
Current liabilities:
Derivative liability		797,185	[1]
Adjustments | Derivative Liability Adjustments For Change In Fair Value | Bonus Warrants
Current liabilities:
Derivative liability		(492,111)	[2]
Adjustments | Derivative Liability Adjustments For Fair Value At Date Of Issuance | Bonus Warrants
Current liabilities:
Derivative liability		(234,731)	[3]
Adjustments | Convertible Debt Adjustments To Reverse Improper Recording Of Debt Discount
Current liabilities:
Convertible debt		600,000	[4]
Adjustments | Convertible Debt Adjustments To Reverse Improper Recording And Amortization Of Debt Discount
Current liabilities:
Convertible debt		(394,285)	[5]
Adjustments | Common Stock Adjustments To Record Difference Between Reacquisition Price And Net Carrying Amount
Stockholders' deficit:
Common Stock Value		1,350,000	[6]
Adjustments | Common Stock Adjustments To Reverse Improper Recording Of Debt Discount
Stockholders' deficit:
Common Stock Value		(600,000)	[4]
Adjustments | Common Stock Adjustments To Reverse Incorrect Recording Of Fair Value At Issuance
Stockholders' deficit:
Common Stock Value		(234,731)	[7]
Adjustments | Common Stock Adjustments For Fair Value At Date Of Issuance
Stockholders' deficit:
Common Stock Value		234,731	[3]
Adjustments | Accumulated Deficit Adjustments To Record Difference Between Reacquisition Price And Net Carrying Amount
Stockholders' deficit:
Accumulated deficit		(1,350,000)	[6]
Adjustments | Accumulated Deficit Adjustments To Reverse Improper Recording And Amortization Of Debt Discount
Stockholders' deficit:
Accumulated deficit		394,285	[5]
Adjustments | Accumulated Deficit Adjustments For Fair Value As Of Amendment Date
Stockholders' deficit:
Accumulated deficit		(797,185)	[1]
Adjustments | Accumulated Deficit Adjustments For Change In Fair Value
Stockholders' deficit:
Accumulated deficit		492,111	[2]
Adjustments | Accumulated Deficit Adjustments To Reverse Incorrect Recording Of Fair Value At Issuance
Stockholders' deficit:
Accumulated deficit		$ 234,731	[7]

[1] to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

[2] to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants for the six months ended June 30, 2011.

[3] to record the fair value of bonus warrants at date of issuance.

[4] to reverse the improper recording of debt discount.

[5] to reverse the improper recording of and amortization of debt discount.

[6] to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

[7] to reverse incorrect recording of the fair value of bonus warrants at issuance.

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Stock Option Activity (Detail) (USD $)	6 Months Ended
	Jun. 30, 2012
Number of shares
Outstanding - January 1, 2012	5,886,261
Granted during the period	300,000
Exercised during the period
Cancelled during the period
Outstanding - June 30, 2012	6,186,261
Exercisable at June 30, 2012	3,734,703
Weighted-average exercise price
Outstanding - January 1, 2012	$ 1.11
Granted during the period	$ 0.72
Exercised during the period
Cancelled during the period
Outstanding - June 30, 2012	$ 1.10
Exercisable at June 30, 2012	$ 1.05

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Business and Basis of Financial Statement Presentation

(a)         Business and Basis of Financial Statement Presentation

Our predecessor company was formed in 1981 under the name Analytic Surveys, Inc. On March 20, 2008, Analytic Surveys, Inc. consummated an Agreement and Plan of Merger (or the Merger) with Axion International, Inc. In the Merger, the stockholders of Axion International, Inc. succeeded to approximately 90.7% of Analytic Survey, Inc.’s issued and outstanding common stock and Analytics Survey changed its name to Axion International Holdings, Inc. The Merger has been accounted for as a reverse merger in the form of a recapitalization with Axion as the successor.

We develop, manufacture, market and sell composite rail ties and structural building products, such as pilings, I-beams, T-beams and boards, which, based upon patented technology developed at Rutgers University, are fully derived from common recycled plastics and high-density polymers, such as polyethylene, polystyrene and polypropylene. These recycled plastics, which are combined with recycled plastic composites containing encapsulated fiberglass, achieve structural thickness and strength and are resistant to changing shape under constant stress. Our products, manufactured through an extrusion process, are eco-friendly, non-corrosive, moisture impervious, non-chemical leaching and insect and rot resistant. Our products possess superior lifecycles and generally have greater durability and require less maintenance than competitive products made from wood, steel or concrete. We market our products in two lines, the first being ECOTRAX™, our line of rail ties, and the second being STRUXURE™, our line of structural building products.

Our consolidated financial statements include the accounts of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with Rule S-X of the Securities and Exchange Commission and with the instructions to Form 10-Q, and accordingly, they do not include all of the information and footnotes which may be required by generally accepted accounting principles for complete financial statements.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. However, the results from operations for the six months ended June 30, 2012, are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated December 31, 2011 financial statements and footnotes thereto included in the Company's Form 10-K/A filed with the SEC.

Cash and Cash Equivalents

(b)         Cash and Cash Equivalents

For purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

Property and Equipment

(c)         Property and Equipment

Property and equipment are recorded at cost and are depreciated and amortized using the straight-line method over estimated useful lives of two to twenty years.  Costs incurred that extend the useful life of the underlying asset are capitalized and depreciated over the remaining useful life. Repairs and maintenance are charged directly to operations as incurred.

Our property and equipment is comprised of the following:

	June 30, 2012			December 31, 2011
Property, equipment, and leasehold improvements, at cost:
Equipment	$	13,754		$	13,754
Machinery and equipment		2,400,620			1,618,701
Purchased software		123,551			56,404
Furniture and fixtures		13,090			14,040
		2,551,015			1,702,899
Less accumulated depreciation		(728,954	)		(655,763	)
Net property and leasehold improvements	$	1,822,061		$	1,047,136

Depreciation expense included as a charge to costs of sales and general and administrative expenses for the three months ended June 30, 2012 and 2011 was $38,947 and $29,620, respectively and for the six months ended June 30, 2012 and 2011 was $73,191 and $69,704, respectively.

Allowance for Doubtful Accounts

(d)         Allowance for Doubtful Accounts

We accrue a reserve on a receivable when, based upon the judgment of management, it is probable that a receivable will not be collected and the amount of any reserve may be reasonably estimated.  During the three months ended June 30, 2012, we reserved $100,415 for receivables we determined we may not collect in full. As of June 30, 2012 and December 31, 2011, we provided an allowance of $133,146 and $32,731, respectively for doubtful accounts.

Revenue and Cost Recognition

(e)        Revenue and Cost Recognition

In accordance with FASB ASC 605 “Revenue Recognition”, revenue is recognized when persuasive evidence of an agreement with the customer exists, products are shipped or title passes pursuant to the terms of the agreement with the customer, the amount due from the customer is fixed or determinable, collectability is reasonably assured, and there are no significant future performance obligations.

We recognize revenue when a fixed commitment to purchase the products is received, title or ownership has passed to the customer and we do not have any specific performance obligations remaining, such that the earnings process is complete. In most cases, we receive a purchase order from our customer specifying the products requested and delivery instructions. We recognize revenue upon our delivery of the products as specified in the purchase order.

In other cases where we have a contract which provides for a large number of products and few actual deliveries, the revenues are recorded each month as the products are produced and the risk of ownership passes to the customer upon pre-delivery acceptance. Prior to deliveries, our customer’s products are segregated from our inventory and not available for fulfilling other orders.

Under our third-party contract manufacturing arrangements, our costs of sales are predominately comprised of the cost of raw materials and the costs and expenses associated with the third-party manufacturer producing the finished product. Under one arrangement, we purchase and supply the raw materials to the third-party manufacturer who we pay a per-pound cost to produce the finished product. Under our other arrangement the third-party manufacturer sources and pays for the raw materials and we purchase the finished product from them at a cost per unit. In addition, for that arrangement, we are responsible for any costs of raw materials purchased by the third-party manufacturer in excess of the arrangement’s reference prices and we share any savings for purchases below the reference prices.  Our costs of sales may vary significantly as a result of the variability in the cost of our raw materials and the efficiency with which we plan and execute our manufacturing processes.

Historically, we have not had significant warranty replacements, and do not believe we will in the future.

Income Taxes

(f)          Income Taxes

We use the asset and liability method of accounting of income taxes pursuant to the provisions of FASB ASC 740 “Income Taxes”, which establishes deferred tax assets and liabilities to be recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Impairment of Long-Lived Assets Other Than Goodwill

(g)         Impairment of Long-Lived Assets Other Than Goodwill

We assess the potential for impairment in the carrying values of our long-term assets whenever events or changes in circumstances indicate such impairment may have occurred.  An impairment charge to current operations is recognized when the estimated undiscounted future net cash flows of the asset are less than its carrying value. Any such impairment is recognized based on the differences in the carrying value and estimated fair value of the impaired asset.

Derivative Instruments

(h)         Derivative Instruments

For derivative instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in fair value recognized in earnings each reporting period. We use the Black-Scholes model to value the derivative instruments at inception and subsequent valuation dates and the value is re-assessed at the end of each reporting period, in accordance with FASB ASC Topic 815, “Derivatives and Hedging”. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not the net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date.

Share-Based Compensation

(i)          Share-Based Compensation

We record share-based compensation for transactions in which we exchange our equity instruments for services of employees, consultants and others based on the fair value of the equity instruments issued at the date of grant or other measurement date.  The fair value of common stock awards is based on the observed market value of our stock.  We calculate the fair value of options and warrants using the Black-Scholes option pricing model.  Expense is recognized, net of expected forfeitures, over the period of performance.  When the vesting of an award is subject to performance conditions, no expense is recognized until achievement of the performance condition is deemed to be probable. Options issued to consultants are remeasured as they vest each reporting period and the resulting value is recognized as an adjustment against our net loss over the period during which the services are received.

Earnings (Loss) Per Share

(j)         Earnings (Loss) Per Share

Basic earnings (loss) per share are computed by dividing earnings (loss) available to common shareholders by the weighted average number of common shares outstanding for the period.  Diluted earnings (loss) per share include the effects of the potential dilution of outstanding options, warrants, and convertible debt on our common stock as determined using the treasury stock method. For the three and six months ended June 30, 2012 and 2011, there were no dilutive effects of such securities because we incurred a net loss in each period.  As of June 30, 2012, we have approximately 23.4 million potential common shares issuable under our convertible instruments, warrant and stock option agreements.

Fair Value of Financial Instruments

(k)         Fair Value of Financial Instruments

Fair value is defined as an exit price, which is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date.  The degree of judgment utilized in measuring the fair value of assets and liabilities generally correlates to the level of pricing observability.  Financial assets and liabilities with readily available, actively quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and require less judgment in measuring fair value.  Conversely, financial assets and liabilities that are rarely traded or not quoted have less price observability and are generally measured at fair value using valuation models that require more judgment.  These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency of the asset, liability or market and the nature of the asset or liability.  We have categorized our financial assets and liabilities that are recurring at fair value into a three-level hierarchy in accordance with these provisions.

Concentration of Credit Risk

(l)          Concentration of Credit Risk

We maintain our cash within two major U.S. domestic banks. The amount held within one of these banks exceeds the insured limit of $250,000 from time to time and was approximately $2.1 million at June 30, 2012.  We have not incurred losses related to these deposits.  Our accounts receivable balance as of June 30, 2012 of approximately $1.0 million consists of amounts due from a limited number of customers.

Use of Estimates

(m)         Use of Estimates

The preparation of our financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates.

Redeemable Common Stock

(n)         Redeemable Common Stock

We account for redeemable common stock in accordance with ASC 480-10-S99-3A “Classification and Measurement of Redeemable Securities,” which provides that securities that are redeemable for cash or other assets are classified outside of permanent equity if they are redeemable at the option of the holder. Accordingly, 250,000 shares of common stock issued during the year ended December 31, 2011, as a commitment fee pursuant to the revolving credit agreement were classified outside of permanent equity at redemption value, when issued. If circumstances would have indicated it was probable the holder may redeem these shares of common stock, we would have recognized changes in the redemption value in the period they occurred and adjusted the carrying value of the redeemable common stock to equal its redemption value at the end of that reporting period. During the three months ended June 30, 2012, the revolving credit agreement was terminated and the related redemption value of the shares of common stock was reclassified to permanent equity.

Going Concern

(o)       Going Concern

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplates our continuation as a going concern.  At June 30, 2012, we had a working capital deficit of $1.9 million, a stockholders’ deficit of $5.9 million and have accumulated losses to date of $32.8 million.  This raises substantial doubt about our ability to continue as a going concern.  In view of these matters, realization of certain of the assets in the accompanying balance sheet is dependent upon our ability to meet our financing requirements, raise additional capital, and the success of our business plan and future operations.  We continue to seek additional means of financing to fund our business plan, but there is no assurance that we will be successful in raising sufficient funds to assure our eventual profitability.  We believe that actions planned and presently being taken to revise our operating and financial requirements provide us the opportunity to continue as a going concern. The financial statements do not include any adjustments that might result from these uncertainties.

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Derivative Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Financial Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the financial liabilities measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	As of June 30, 2012
	Level 1		Level 2		Level 3		Liabilities at Fair Value
Placement agent warrants		-		-		140,458		140,458
Total	$	-	$	-	$	140,458	$	140,458

	As of December 31, 2011 (Restated)
	Level 1		Level 2		Level 3		Liabilities at Fair Value
Derivative liability – conversion option	$	-	$	-	$	113,271	$	113,271
Derivative liability – warrants		-		-		1,875,463		1,875,463
Derivative liability – bonus warrants		-		-		70,343		70,343
Placement agent warrants		-		-		487,555		487,555
Total	$	-	$	-	$	2,546,632	$	2,546,632

Reconciliation of Derivative Liability Used in Determining Fair Value

The following tables are a reconciliation of the derivative liability for which Level 3 inputs were used in determining fair value:

	Conversion Option			Warrants			Bonus Warrants			Placement Agent Warrants
Beginning balance as of January 1, 2012	$	113,271		$	1,875,463		$	70,343		$	487,555
Change in fair value		(113,271	)		-			(13,309	)		(347,097	)
Credited to common stock upon issuance of warrants		-			(1,875,463	)		(57,034	)		-
Ending balance as of June 30, 2012	$	-		$	-		$	-		$	140,458

	Conversion Option			Warrants		Bonus Warrants			Placement Agent Warrants
Beginning balance as of January 1, 2011	$	-		$	-	$	-		$	-
Fair value of derivative liability		118,663			-		797,185			487,555
Change in fair value		(5,392	)		1,875,463		(492,111	)		-
Credited to common stock upon issuance of warrants		-			-		(234,731	)		-
Ending balance as of December 31, 2011	$	113,271		$	1,875,463	$	70,343		$	487,555

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Stockholders Equity - Additional Information (Detail) (USD $)	1 Months Ended			3 Months Ended	6 Months Ended		1 Months Ended	3 Months Ended	6 Months Ended		3 Months Ended	6 Months Ended			3 Months Ended	6 Months Ended
	May 31, 2012	Mar. 31, 2012	Dec. 31, 2011	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011	Jan. 31, 2012 Consulting Services	Jun. 30, 2012 Redeemable Preferred Stock	Jun. 30, 2012 Redeemable Preferred Stock	Jun. 30, 2012 Warrant	Jun. 30, 2012 Warrant For Convertible Preferred Stock Holders	Jun. 30, 2012 Warrant For Convertible Preferred Stock Holders	Jun. 30, 2012 Warrant For Convertible Preferred Stock Holders Warrants issued an exercise price of $1.00	Jun. 30, 2012 Conversion Options OptionPlan	Jun. 30, 2012 Conversion Options Options awarded in prior periods	Jun. 30, 2012 Conversion Options Options awarded in prior periods	Jun. 30, 2012 Stock Options	Jun. 30, 2012 Common Stock Shares	Dec. 31, 2011 Common Stock Shares
Stockholders Equity Note [Line Items]
Common stock, no par value
Common stock, authorized			100,000,000	100,000,000	100,000,000
Preferred stock, authorized				2,500,000	2,500,000
Common stock, shares issued			25,007,261	26,188,550	26,188,550													26,188,550	25,257,261
Common stock, shares outstanding			25,007,261	26,188,550	26,188,550													26,188,550	25,257,261
10% Convertible preferred stock, authorized			880,000	880,000	880,000
10% Convertible preferred stock, outstanding			752,273	726,023	726,023
Common stock issued upon conversion and exercise of warrants and other convertible securities					23,400,000
Shares issued for services							125,000
Value of shares Issued for services							$ 90,000
Common stock shares issued as dividends on the 10% Convertible preferred stock	20,000	286,251	247,538	392,800
Dividends paid on the 10% Convertible preferred stock	200,000	171,751	176,620
Common stock issued upon conversion Preferred Stock, shares	200,000	62,500		200,000	262,500
Preferred Stock shares converted		6,250		250,000
Common stock issued upon conversion Preferred Stock, value		62,500
Shares issued to an employee	10,000
Shares issued to an employee, fair value	6,400
Expected dividend yield
Fair value assumption, minimum expected volatility rate										83.00%
Fair value assumption, maximum expected volatility rate										100.00%
Fair value assumption, minimum risk-free interest rate										0.30%
Fair value assumption, maximum risk-free interest rate										0.60%
Fair value assumption, expected term										3 years							5 years
Granted during the period, shares										3,928,040	100,005	166,675	3,761,365
Granted during the period, weighted average exercise price										$ 0.98	$ 0.60	$ 0.60	$ 1.00
Granted during the period, fair value											18,900	57,000	1,875,463
Amortization of previously granted warrants				2,866	21,799
Shares of stock called by warrants				3,800,000	3,800,000			58,352	58,352
Warrant exercise price				1.0	1.0			10	10
Fair value of the warrant liability								140,458	140,458
Change in fair value of the warrant liability								104,539	347,097
Number of stock option plans														2
Shares available for grant														1,200,000
Options issued, exercisable period from date of grant														10 years
Fair value assumption, expected volatility rate																	125.00%
Fair value assumption, risk-free interest rate																	0.80%
Amortization of fair value of options				105,980	138,385
Fair value of option recognized as expense					497,039	2,318,507									45,537	240,457
Compensation expense to be recognized in subsequent periods				$ 71,800	$ 71,800

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Convertible Revolving Credit Agreement - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended	6 Months Ended			3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2012	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Apr. 30, 2011	Jun. 30, 2012 Revolving Credit Agreement	Jun. 30, 2012 Revolving Credit Agreement	Dec. 31, 2011 Revolving Credit Agreement	Dec. 31, 2011 Redeemable Common Stock
Debt Disclosure [Line Items]
Revolving credit facility, maximum agreed amount of loan				$ 2,000,000				$ 2,000,000
Revolving credit facility, interest rate								12.00%
Shares of restricted redeemable common stock issued					759,773				250,000
Amortization of discount on revolving credit agreement			$ 298,400			$ 203,471	$ 305,206
Shares of common stock reclassified to permanent equity	6,250	250,000

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CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (USD $)	Total USD ($)	10% Convertible Preferred Stock USD ($)	Bonus Warrants USD ($)	Common Shares	Common Shares 10% Convertible Preferred Stock	Additional Paid-in Capital and Common Stock USD ($)	Additional Paid-in Capital and Common Stock 10% Convertible Preferred Stock USD ($)	Additional Paid-in Capital and Common Stock Bonus Warrants USD ($)	Accumulated Deficit USD ($)
Beginning Balance at Dec. 31, 2011	$ (5,235,863)					$ 24,410,071			$ (29,645,934)
Beginning Balance (in shares) at Dec. 31, 2011				25,007,261
Shares issued pursuant to debt conversion and accrued interest (in shares)	262,500				262,500
Shares issued pursuant to debt conversion and accrued interest		262,500					262,500
Shares issued for dividend payments (in shares)				533,789
Shares issued for dividend payments	348,371					348,371
Share-based compensation (in shares)				135,000
Share-based compensation	497,039					497,039
Reclassification of previously redeemable common shares (in shares)				250,000
Reclassification of previously redeemable common shares	242,500					242,500
Dividend on 10% convertible preferred stock	(348,524)					(348,524)
Amortization of beneficial conversion feature of 10% convertible preferred stock	(474,680)					(474,680)
Warrants issued		1,875,463	57,034				1,875,463	57,034
Net loss	(3,139,923)								(3,139,923)
Ending Balance at Jun. 30, 2012	$ (5,916,083)					$ 26,869,774			$ (32,785,857)
Ending Balance (in shares) at Jun. 30, 2012				26,188,550

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Accrued Liabilities

6 Months Ended

Jun. 30, 2012

Accrued Liabilities

Note 4 - Accrued Liabilities

The components of accrued liabilities are:

	June 30, 2012		December 31, 2011
Royalties	$	254,007	$	239,129
Payroll		58,161		54,325
Sales tax payable		36,740		29,112
Insurance premiums payable		55,543		20,320
Interest		67,408		-
Miscellaneous		16,829		16,829
Total accrued liabilities	$	488,688	$	359,715

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Commitments and Contingencies - Additional Information (Detail) (USD $)	1 Months Ended		3 Months Ended	6 Months Ended
	Sep. 30, 2008	Nov. 30, 2004	Jun. 30, 2012	Jun. 30, 2012 Contract
Commitments and Contingencies [Line Items]
Lease agreement, term				3 years
Lease agreement, Initial monthly lease payments			$ 3,400	$ 3,400
Lease agreement, Initial lease expiration date				Oct. 31, 2012
Lease agreement, additional optional term				3 years
Lease agreement, number of renewal option				1
Facility rent expense			11,300	22,600
Future minimum rental payments			15,100	15,100
Royalty payment to Rutgers, minimum rate			1.50%	1.50%
Royalty payment to Rutgers, maximum rate			3.00%	3.00%
Shares of common stock issued for loan consideration		1,701,341
Summary judgment granted to the company against Tonga for disgorgement of short-swing profits	$ 5,000,000

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Convertible Debt (Tables)

6 Months Ended

Jun. 30, 2012

Debt

The components of debt are summarized as follows.

	Due	June 30, 2012		December 31, 2011 (Restated)
10% convertible debentures	June 2012	$	-	$	600,000
8.75% convertible debenture	January 2012		-		172,500
Total			-		772,500

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Inventories (Detail) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Schedule of Inventory [Line Items]
Finished products	$ 2,152,193	$ 1,032,798
Production materials	205,575	495,693
Total inventories	$ 2,357,768	$ 1,528,491

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Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions

Note 14 - Related Party Transactions

Michael Dodd

Mr. Dodd, who was a member of our board of directors from September 2010 until his resignation in August 2012, is currently serving as the Chief Executive Officer of 3D Global Solutions Inc. (3D).  3D provides professional program management services to governments, corporations and global organizations. During the year ended December 31, 2011, 3D purchased approximately $102,200 of our composite rail ties on terms similar to our other customers and which remains uncollected at June 30, 2012.

Samuel G. Rose

Samuel G. Rose beneficially owns in excess of 5% of our outstanding stock.

Convertible Revolving Credit Agreement. During the year ended December 31, 2011, we entered into a convertible revolving credit agreement (the Agreement”) with Mr. Rose. Under the terms of the Agreement, Mr. Rose had agreed to lend us up to $2,000,000 on a revolving basis (the Loan”). The Loan carried interest at 12% per annum on the outstanding principal amount. The Loan had an original maturity date of September 30, 2012. In consideration for the Loan, we paid all legal and accounting costs associated with the documentation of the Loan and issued to Mr. Rose 250,000 shares of our restricted common stock. We have agreed to register the common stock issued to Mr. Rose within six months from date of closing provided, however, if such common stock is not registered we will redeem all of Mr. Rose’s unregistered stock in cash at a price equal to the greater of (a) the average VWAP for the thirty days ending one trading day prior to the date of issuance or (b) $0.90 per share.

We gave Mr. Rose a security interest in our inventory and accounts receivable pursuant to terms of a security agreement. During the year ended December 31, 2011, we borrowed $466,000 under the Agreement.

During the three months ended June 30, 2012 we repaid the outstanding principal and accrued interest and the Agreement was cancelled.

Demand Promissory Notes. Effective April 25, 2012 we entered into a Memorandum of Understanding (the “MOU”) with Mr. Rose and several other investors. Pursuant to the MOU, we issued to Mr. Rose a demand promissory note (the “Note”) in the principal amount of $1,666,667.  Interest accrues on the unpaid principal balance of the Note at a rate of 8.00% per annum. The principal balance of the Note, together with accrued and unpaid interest, is due and payable at any time after June 30, 2012 on demand.

Melvin Lenkin

Melvin Lenkin beneficially owns in excess of 5% of our outstanding stock.

Demand Promissory Notes. Effective April 25, 2012 we entered into a Memorandum of Understanding (the “MOU”) with Mr. Lenkin and several other investors. Pursuant to the MOU, we issued to Mr. Lenkin a demand promissory note (the “Note”) in the principal amount of $1,426,667.  Interest accrues on the unpaid principal balance of the Note at a rate of 8.00% per annum. The principal balance of the Note, together with accrued and unpaid interest, is due and payable at any time after June 30, 2012 on demand.