Quarterly report pursuant to sections 13 or 15(d)

Condensed Consolidated Statements of Operations (Unaudited)

v2.3.0.11
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
 3 Months Ended 6 Months Ended 34 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Revenue:          
Service fees $ 3,410   $ 6,015   $ 8,814
Sales 231,472 59,490 231,472 59,490 290,962
TOTAL REVENUE 234,882 59,490 237,487 59,490 299,776
Costs          
Cost of Services 1,382   1,790   3,007
Cost of sales 187,056 60,830 187,056 60,830 247,886
TOTAL COST OF REVENUE 188,438 60,830 188,846 60,830 250,893
Gross profit (loss) 46,444 (1,340) 48,641 (1,340) 48,883
Operating expenses          
Compensation 587,178 322,899 1,115,957 970,419 11,145,399
Other operating expenses 179,412 124,278 304,220 225,676 1,035,543
General and administrative 177,561 217,329 1,058,944 419,257 3,618,350
TOTAL OPERATING EXPENSES 944,151 664,506 2,479,121 1,615,352 15,799,292
Loss from operations (897,707) (665,846) (2,430,480) (1,616,692) (15,750,409)
Other income (expense)          
Interest expense, net (509) (8,671) (542) (20,732) (91,647)
Loss on change in fair value of derivative liability   (55,327)      
Loss on exchange of warrants for common stock         (485,000)
Gain on change in fair value of derivative liability       3,278,163 245,217
Total other income (loss) (509) (63,998) (542) 3,257,431 (331,430)
Income (loss) before income taxes (898,216) (729,844) (2,431,022) 1,640,739 (16,081,839)
Income tax provision          
Net income (loss) $ (898,216) $ (729,844) $ (2,431,022) $ 1,640,739 $ (16,081,839)
Net loss per share - basic and diluted $ (0.02) $ (0.03) $ (0.06) $ 0.11  
Weighted average number of common shares outstanding - basic and diluted 40,292,090 24,653,411 39,245,533 14,867,219