Annual report pursuant to section 13 and 15(d)

Consolidated Statements of Operations

v2.3.0.11
Consolidated Statements of Operations (USD $)
 12 Months Ended 28 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Revenue:      
Service Fees $ 2,799 $ 0 $ 2,799
Sales 59,490 0 59,490
TOTAL REVENUE 62,289   62,289
Costs:      
Cost of Services 1,217 0 1,217
Cost of Sales 60,830 0 60,830
TOTAL COSTS 62,047 0 62,047
GROSS PROFIT 242 0 242
Operating expenses:      
Compensation 1,933,277 7,832,887 10,029,442
Other operating expenses 430,573 260,176 731,323
General and adminisrative 1,725,197 799,274 2,559,406
TOTAL OPERATING EXPENSES 4,089,047 8,892,337 13,320,171
LOSS FROM OPERATIONS (4,088,805) (8,892,337) (13,319,929)
Other income (expense):      
Interest expense, net (54,885) (28,578) (91,105)
Loss on exchange of warrants to stock (485,000) 0 (485,000)
Gain on change in fair value of derivative liability 3,488,615 3,211,356 245,217
TOTAL OTHER INCOME (EXPENSE) 2,948,730 3,182,778 (330,888)
Loss before income taxes (1,140,075) (5,709,559) (13,650,817)
Income tax provision 0 0 0
NET LOSS $ (1,140,075) $ (5,709,559) $ (13,650,817)
Net loss per common share - basic & diluted $ (0.05) $ (3.47)  
Weighted average number of common shares outstanding - basic & diluted 23,898,637 1,646,789 0