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(9) Conversion of convertible notes by management Adjusted for the reverse stock splits in total at June 6, 2008 and October 20, 2008. Adjusted for the reverse stock splits in total at June 6, 2008 and October 20, 2008 The number of shares underlying options and warrants outstanding as of June 30, 2012 and June 30, 2011 are 32,408,692 and 24,679,688 respectively. The effect of the shares that would be issued upon exercise of such options and warrants has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. The short-term notes have all matured except for the $16,800 that matures in December 2012. The Company is currently negotiating with the note holders. 4552862