NOTE 3. GOING CONCERN

3 Months Ended

Mar. 31, 2012

Going Concern Note

NOTE 3.   GOING CONCERN

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has an accumulated deficit of $48,633,901 as of March 31, 2012, including a net loss of $586,484 during the three months period ended March 31, 2012.

These conditions raise substantial doubt about its ability to continue as a going concern. Its ability to continue as a going concern is dependent upon its ability to develop additional sources of capital and ultimately achieve profitable operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

Management has taken certain steps to provide the Company with necessary capital to continue its operations. These steps include: 1) actively seeking additional funding in the form of unsecured indebtedness and 2) seeking to increase revenues from product sales.

During the first three months of 2012, the Company sold detection kits under various purchase agreements for $33,639. The Company also entered into various agreements to issue 705,357,142 shares of its common stock to third parties in order to convert outstanding debt to the respective parties.  The value of the stock issued in consideration for the debt conversion was $141,071.  The Company issued 770,000,000 shares of its common stock to its President and CEO to satisfy outstanding debt and accrued salary valued at $770,000.